Filed Under Buying · Tagged: 8000 tax credit, National Association of Home Builders, National Association of Realtors, Shaun Donovan, stimulus, U.S. Housing and Urban Development, Washington · Print This Article
This is part of the plan, according to an announcement given by Shaun Donovan, U.S. Housing and Urban Development Secretary. This announcement was given at the National Association of Realtors’ Midyear Legislative Meetings & Trade Expo in Washington.
The FHA plans to allow lenders and state and local government agencies to issue short-term bridge loans of the $8000 tax credits for buyers to use for their down-payment. Buyers can then repay the loan after getting their tax refund. Essentially it works like a tax refund advance.
“We want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan said.
Details of the new program should be coming soon.
There’s a small hang-up with the IRS, which has a rule about tax payers designating someone else to get their tax refunds. But there are a lot of people, including the NAR, working on this issue.
NAR, who has been asking for this change, thinks this plan
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