HUD: Stimulus tax credit can be used on first-home purchase - Denver Business Journal:

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Under the American Recovery and Reinvestment Actof first-time homebuyers can qualify for the tax creditf for purchasing their first home aftetr filing their taxes. But under a new prograkm announced Friday, state housing finance agenciee and nonprofit groups can advancde money to homebuyers up to the full amounty of their tax credit so the money can be used on a home either to pay closing costs or to add to adown "Home buyers using FHA-approved lenders can apply the tax credig to their down payment in excessz of 3.5 percent of appraised value or their closinhg costs, which can help achiever a lower interest rate," a HUD announcemenyt said.
"Families will now be able to applty their anticipated tax credit toward their home purchasreright away," Donovan said in the "At the same time we are puttinv safeguards in place to ensurd that consumers will be protected from unscrupulous What we're doing today will not only help these families to purchass their first home but will present an enormous benefi for communities struggling to deal with an oversupply of The stimulus tax credit can be claimed on a taxpayer's 2009 or through an amended 2008 FHA will still require that homebuyers pay a 3.
5 percent down HUD cited National Association of Home Builders data showinv that the first-time homebuyer tax credit will stimulatew 160,000 home sales across the nation, with 101,000o of those sales being to first-time buyers and 59,000 to existing homeowners who be able to sell theirt home to a first-time buyer. .