$8,000 Tax credit cannot be used for down payment

The Arizona Republic ran a story about the fact that Federal officials on Monday reversing an earlier decision to allow first-time home buyers to use an $8,000 tax credit to borrow the down payment on a home.

Lenders, home builders and real estate agents were in favor of the  bridge loan proposal, because they believe that  it would open up the housing market to more first-time buyers who may not otherwise have the cash to put down.

The opposition claims that the money should be used for savings not debt and compared the idea to other programs in the past which provided down payment assistance.  How does this effect Cincinnati Real Estate? If you are  seeking an FHA loan and do no thave the 3.5% to put down then you may have to have a relative gift you the money. There is also grant money available in some states depending on the time of year that you buy. At the end of the year most of the grant money has already been distributed.

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