Earlier this year, the federal government came out with an $8,000 tax credit for first-time homebuyers.
Now that’s great, but the problem is you weren’t able to have the money at the time of closing -- you have to wait until the end of year, file your taxes and then get the money.
They’ve rectified that situation.
Essentially, you will be able to borrow up to $8,000 from your lender. This is a separate short-term loan in addition to your regular mortgage. The lenders who are able to provide this are approved FHA lenders.
You still need to have some money to come up with for your down payment. You have to have a minimum down payment of 3.5 percent, but then on top of it you can add $8,000 or use the $8,000 to offset closing costs.
At the end of the year, file your taxes, get the $8,000 from the government and pay your loan off. This is a great way to be able to buy your house and owe much less on it.
