Can the $8000 tax credit be used for down payment assistance and closing costs?
One of the most common questions that I have had in the last few weeks is “I heard that you can now use the 8000 tax credit for your down payment, is this true?” And my official answer to that question has been “Wait and see. Nothing is official yet.” The wait is now over. On Friday, HUD issued a Mortgagee Letter that outlined the rules regarding “using the 8000 tax credit for your down payment” — which has also been referred to as “monetizing the tax credit”. Across the US, experts are predicting that the 8000 tax credit will spur up to 160,000 new home sales — and more than just a few of those 160,000 people will be right here in Arizona. Now, with the new rules that have been established, you no longer have to wait to use the 8000 tax credit for new home buyers for closing costs or part of a down payment, there is a process to use it immediately. According to Reuters: The National Association of Home Builders estimates that the $8,000 first-time homebuyer credit will stimulate 160,0
