It’s Official: Some First-Time Home Buyers Can Use the $8,000 Tax Credit Now

The Federal Housing Administration today announced that first-time home buyers can use the $8,000 tax credit sooner rather than later, as long as they’re using an FHA-insured mortgage and can come up with a down payment of 3.5% (before help from the tax credit). According to the seattlepi.com, home buyers can use the credit to either plump up their down payment, or for closing costs, instead of waiting to see the money until after they do their taxes next year.

Think you might want to take advantage? The FHA has a site where you can find FHA-qualified lenders.

The FHA is going to monitor this pretty closely. From their Web site:

Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.

For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

The National Association of Home Builders estimate that the plan could stimulate 160,000  home sales across the country. That would be a much-needed boon for the real estate industry.

Do you qualify for the $8,000 First-Time Home Buyer Tax Credit?

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