As of June 1st, FHA lenders can loan first-time buyers up to $8000 on a short-term basis for use on closing and some down payment costs. The Federal Housing Administration has issued new guidance to lenders allowing them to “monetize” the credit and advance cash to first-time purchases for closing fees and other expenses, including interest rate buydowns.
When the buyers get their tax credit checks from the IRS, they pay the lender back. FHA buyers will still have to qualify for the loan and meet the 3.5% down payment requirement either through their own reserves or a gift from a relative.
For more information on the tax credit as down payment, please give our office a call or vistis: