$8000 Tax Credit as Down Payment
3 Jun2009
Filed Under Buying · Tagged: 8000 tax credit, Internal Revenue Service, stimulus · Print This Article
As it stands now, the $8,000 tax credit for first-time buyers CAN be used for a down payment, with some stipulations.
The IRS will allow a credit advance (basically, a short-term loan) in order for the money to be used as part of a downpayment. However, there are some things to know. First of all, this only applies to FHA mortgages. Secondly, and this is important, you still must have a 3.5% down-payment as required by FHA. This portion cannot come from the credit advance/loan.
This money can be used to pay for closing costs and remaining down payment. This 3.5% is simply to reduce the
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