Using the $8,000 Tax Credit for Closing Costs... On Again, Off Again

I feel like my head is spinning! A couple of weeks ago, I first read an article by the National Association of Realtors stating that buyers with FHA loans would soon be able to get a bridge loan that would allow them to use the $8,000 first-time home buyer tax credit as part of their down payment.

I was overjoyed! What a fantastic way to create an opportunity for potential buyers who are financially stable but may not have enough cash on hand to pay for their closing costs. Sure, there are seller concessions to help with that, but with the crack down on appraisals it's becoming harder and harder to utilize those while still keeping your seller close to their net asking price. This would alleviate all those appraisal problems!!

I should have known the loan idea was too good to be true. A mere couple of days later, I came across another article saying that the bridge loans would NOT be allowed. It seems the government had problems with the legalities of it.

Today, I found this article from Realtor Magazine in my inbox. Now it looks like buyers will be able to use such loans to defray their costs, as long as they are able to come up with the necessary 3.5% down through other means. Is this ideal? Not exactly. That 3.5% is the tough part for some buyers to come up with. But it's certainly better than nothing.

Let's see how long this decree lasts...

I am proud to help buyers and sellers in the Greater Rochester, New York area find the homes of their dreams. If you are considering purchasing or selling a home in the Rochester area, don't hesitate to contact me. I pride myself in providing the best possible service for my clients!

When you work with me...

Visit my website at www.YourNYDreamHome.com to learn more about the services I offer!

• Sellers: Find out how much your home is worth by requesting a FREE Home Evaluation!
• Buyers: Become a savvy consumer by requesting FREE Home Buying Tips!

Contact:
Kristen Wahl
Realtor
(585) 455-5524
KWahl@RealtyUSA.com