Confused about whether or not you can apply the 2009 home buyer tax credit (up to $8000) to the down payment on your FHA loan? It seems many, including lenders, were unclear at first. The 2009 First Time Homebuyer's Tax Credit lets those buying their first primary residence to get a tax break up to $8000.
For FHA lenders and borrowers alike, May was a very confusing month, but the FHA seems to have sorted out the mess. The rules are clear now--bridge loans are permitted, but the FHA's required down payment must still come from the borrower's own funds. According to the Department of Housing and Urban Development's official site, FHA guidelines are designed to allow people interested in an FHA mortgage to cut their up front costs while requiring the borrower to have a personal investment in the property bought with an FHA home loan.
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Labels: 8000, buyer, down payment, FHA, first time, Home, HUD, loan, tax credit
