Can buyers use the $8,000 tax credit for down payments?

It was first announced at the National Association of Realtors Mid Year convention in Washington DC last week that the US Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) were quickly releasing guidelines to monetize the $8,000 tax credit for first time home buyers, so that buyers would be able to use the tax credit as a down payment for the purchase of their new home. Shortly after that announcement HUD has revised their position and is still reviewing the option of monetizing the tax credit because of a concern that the monetization program could resemble an illegal practice of seller-funded down payments. The IRS has also mentioned that there are potential tax concerns as well.

Add to FacebookAdd to NewsvineAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to Furl

Advertisements

1 Comment

Filed under Maryland Real Estate News, Mortgage News

One response to “Can buyers use the $8,000 tax credit for down payments?

  1. Pingback: Monetizing the First Time Home Buyer Tax Credit to pay for closing costs « Maryland Real Estate News

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s