FHA plans to allow use of tax credit for down payments
Home buyers will be able to use the federal $8,000 first-time home buyer tax credit for down payments on Federal Housing Administration loans, U.S. Housing and Urban Development Secretary Shaun Donovan announced Tuesday.
“We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan said at the National Association of Realtors’ Midyear Legislative Meetings & Trade Expo in Washington, according to a printed copy of the remarks released by HUD.
