I am sure you have heard all the Hype about the new ability about Using the $8,000 First Time Homebuyers Tax Credit as a Down Payment. Not so FAST! As a lender on the Broker side I am all over this; I have queried multiple lenders and have included there response. In short not one lender has implemented it and feel it will only be available towards the Closing Cost not the 3.5% required down payment.
Most borrowers will still have to come up with the FHA’s required 3.5 percent down payment, unless they work through a state or local housing agency or an approved nonprofit. Ten states have such programs in place, according to the National Council of State Housing Agencies. – AP: By ALAN ZIBELAt this time Eagle has no investors who will take this. David feels that we need more time for the program to “evolve” as no one know who will monetize these funds. Borrowers can not yet use this as down payment, they still need the 3.5% down, it may let sellers off the hook for closing costs, but at this point no one knows.When this is available to us, we certainly will let the world know, that includes YOU! – Eagle Funding.
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