$8K Stimulus Tax Credit can be used on first home purchase

First-time homebuyers as well as buyers that haven't owned a home in at least three years will be able to apply their tax credit of up to $8,000 directly toward the purchase of their home, at closing.

Under a new Federal Housing Administration program just announced, state housing finance agencies and nonprofit groups can advance money to homebuyers up to the full amount of their tax credit towards a home purchase, either to pay closing costs or the down payment.

"Families will now be able to apply their anticipated tax credit toward their home purchase right away," a HUD announcement said. The credit does not have to be repaid.

Source: Denver Biz Journal

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