HUD Withdraws Tax Credit Down Payment Announcement For FHA Loans
Use of the $8000 First Time Home Buyer Tax Credit is put on hold.
FHA Allows Tax Credit Down Payment
U.S. housing officials will allow some buyers to purchase homes with no money down using the $8000 First Time Homebuyer tax credit money as the down payment. FHA requires a minimum of 3.5% down payments. Using the $8000 tax credit as a down payment could mean a borrower could purchase nearly a $230,000 home with little or no money down. Provided the borrower is qualified in other regards. (Closing costs and prepaids must still be paid to close the home purchase.)
Below is the letter from the US Department of Housing and Urban Development detailing "Using First-Time Homebuyer Tax Credits for the Downpayment"
UPDATE! UPDATE! HUD has removed the letter from their website.