Can the $8000 First Time Home Buyer’s Tax Credit be used for a down payment?


Update: this program has been at least temporarily put on hold.  Read here.

No one could definitely give an answer to that question – until today!  This morning the secretary of U.S. Department of Housing and Urban Development, Shawn Donovan, announced that FHA lenders will allow buyers to use the $8,000 tax credit towards the down payment of a home.  Buyers will be able to bring the $8,000 to the table at closing through the use of a “short-term bridge loan”.

There’s been speculation for quite a while that this could be permissible, but now it appears that it is definitely going to be allowed.  I’m sure we’ll be getting more details in the next few days, so you might want to subscribe to SpringsHomeBlog email updates or use your RSS reader so you can follow the developments.

This is going to be great news to a lot of buyers – and it’s probably going to mean that we’ll be seeing even more activity in the lower price ranges, which are already heating up (more on those stats this week).

In the meantime, Jeremy has a page with facts about the $8,000 First Time Home Buyer’s Tax Credit, as well as a video explaining it in plain English if you’re an auditory learner!  If you’re in Colorado Springs and want to know if this new development will help you be able to purchase a home, you can call or text Jeremy at 719.231.9043 or email to get your questions answered or start looking for a house!