$8,000 Tax Credit Used as money for Closing Cost

An new announcement came out last week about the $8,000 tax credit that is currently being offered to first time homebuyers in the U.S. It seems like the government is not really satisfied with the activity of home purchases that have been going on and so they are adding another incentive to the program.

Yes interest rates have been at all time lows and this has really helped out current home owners. While mortgage applications are up, many of these new applications are for refinancing and not for purchasing, which still leaves us with an over supply of homes issue.

The new government announcement ups the anti and now the government is allowing qualified individuals to get the $8,000 before next year to pay for closing costs!!

Just so everyone is clear, if you are a first time homebuyer and you buy a house in between April 1, 2009 and Dec 31, 2009 you will get an extra $8,000 check from the IRS!!

Even if you do not have to file a tax return and you are exempt from paying taxes. If this is you, you simply file form 5405 to get the $8,000 check!

Now instead of waiting for the check, you can get an advance on it and use the money for closing costs. *Important note here, you can not use the money for a down payment.* You still have to come up with the 3.5% down and the $8,000 can be used for closing costs only.

If anyone has any questions or simply want to discuss, send me an email at erodriguez@arkmortgage.com.