Can You Use $8000 Tax Credit For Down Payment On Your Orange County Home?

Posted by Hartanov Team on Saturday, June 6th, 2009 at 4:44am.

Buying an Orange County home and confused about the new $8,000 first-time-home-buyer tax credit program as it applies to your down payment on an FHA loan? You're certainly not alone, and here's the real deal:

HUD has confirmed that the tax credit can be used toward the down payment on FHA loans, but you cannot replace the required 3.5% minimum. In other words, you still must put 3.5% down, but can then use the tax credit for additional down payment or for closing costs. You make use of the tax credit money by means of a bridge loan.

Some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers can monetize the tax credit upfront to cover all or part of their down payment. These programs are separate from the HUD program. Contact us for details.

So if you or someone you know is thinking about buying an Orange County home, stop thinking and get busy as rates are inching up and the tax credit is only good for a few more months. This all means TODAY is the best time to buy!

Search all Orange County homes for sale.

The Hartanov Team is a Professional, Experienced and Results Oriented, Top Orange County Real Estate Team committed to meeting your needs. We use the latest technology to dramatically improve the speed, efficiency and innovative capabilities of every part of the service we deliver. We specialize in offering a new level of service helping people buy and/or sell Orange County area homes, condos, Short Sales, REO and Bank Owned, investment properties and 1031 exchanges, including relocation assistance for buyers who are becoming new residents of the beautiful ocean front region of Orange County. For more infomation about buying or selling your Orange County home, please call us direct at 949.481.3739 or via email at contact The Hartanov Team.

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