Archives: closing costs

First Time Homebuyer Tax Credit Can Be Used for Closing Costs

Posted on: June 17, 2009

Back in April I blogged about the First Time Home Buyer tax credit. Well in the last couple of weeks there has been a change for the better with respect to the tax credit. FHA- approved lenders can now create what is called a bridge loan type product which would allow the a qualifying first time home buyer to use the tax credit to reduce their closing cost or increase their down payment. Simply put, the First Time Buyer gets the Tax Credit benefit right at the settlement table. (Though Buyers can not use the tax credit to cover the 3.5 percent minimum down payment.)

With interest rates again moving downward and with the ability now to use the tax credit at time of purchase, I encourage you to talk to a REALTOR find out how today’s market conditions could work in your favor. For further information on the Tax Credit please feel free to contact me or go to realtor.org.

Posted by Paul Walsh