The $8,000 tax credit offered by the Obama Administration
on Wednesday, July 1st, 2009 at 8:00 am by kristabThere will be a lot of information coming out of the mortgage industry about using the $8,000 tax credit and leveraging it at closing. The specifics are still coming out but your gonna hear it from the mortgagers. First of all it will be a second mortgage, it would allow the lender to say, I’m gonna give you a 2nd loan that’s gotta be paid back when you get your $8,000. It would not throw your ratios off and would be limited to the amount of your down payment and closing costs. In other words, you can’t get “cash back” but your money would be immediately available to be used at closing. If you were worried about having enough cash for settlement and your a 1st time home buyer, this is good news from HUD because they may be putting that money you need right in your lap if you want or need to use it at closing.
