Tagged : down payment

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

Hartanov Team

Saturday, June 6th, 2009 at 4:44am. 193 Views, 0 Comments.

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…