I’ve heard about many Tampa first time home buyers asking if the $8000 tax credit can be used upfront as a down payment or for closing costs. With first time buyers using an FHA loan needing 3.5% of the purchase price to close (about $8k on a $228k purchase), that’s a good question. So I read with great interest an article in the Sunday Tribune that mentioned how the Florida Senate is working on a program that would provide down payment assistance for first time buyers who would qualify for the credit.
If the program gets approved, first time buyers who would qualify for the tax credit would be given the money upfront through a state trust fund for affordable housing. The state would then be reimbursed by the federal government. Time is of the essence here as the tax credit program expires on December 1st of 2009 (unless extended). This would be great way to help those buyers who qualify but lack some or all of the 3.5% requirement. This is worth watching.
Here’s the article in the Trib
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