Government Recently Makes $8,000 First-Time Homebuyer Tax Credit More Attractive
Posted on June 24, 2009 by Matt.
If you are in the market to buy a San Clemente home or condo for sale and are a first-time homebuyer, you can now use the available $8,000 tax credit upfront towards your down payment or closing costs without having to wait for it when you file your tax return for 2009 in 2010. Here is a summary of how the plan works now:
- Must purchase the home and close escrow no later than December 1, 2009
- First-time homebuyers (i.e. have never owned or have not owned in past three years) can use the $8,000 up front as closing costs or towards down payment
- Only FHA-approved loans are required if tax credit is used as down payment
- While the $8,000 tax credit can be used towards down payment or closing costs, it cannot go towards the 3.5% FHA required down payment.