Mike Long/Long Realty » First Time Home Buyer Credit Available (to some) at Closing

First Time Home Buyer Credit Available (to some) at Closing

June 16th, 2009 by Michael Long
Categories: Things You Should Know

It’s been a few weeks now and it hasn’t gone away so it must be true. I kid. A few weeks back they made the first time home buyer credit available at the closing table to FHA loan borrowers. My understanding is that the lender will do a short term bridge loan to provide the credit immediately and that bridge loan will be paid back when you receive your tax credit after you file.

The credit can be used to cover closing costs, buy down your interest rate or make an even larger down payment. However, you must still have the minimum 3.5% down payment that is required for FHA loans. This does not replace but can add to and make larger the existing down payment.

Let me know if you have any questions. You can find the official press release from the National Association of Realtors here. As always make sure you include your accountant when it comes to decisions made regarding this tax credit.

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