By now you have probably heard about the $8,000 tax credit available to first time MN home buyers. A first time buyer being defined by anyone who hasn’t owned a home in the past 3 years. This was intended to stimulate the housing market. One of the problems with this incentive however, is that many first time home buyers don’t have the money for a down payment on MN houses. Things may change soon…..In a press release today from the National Association of Realtors, FHA may begin to monetize the tax credit to allow first time buyers to use the $8,000 tax credit as part of their down payment at closing. Shaun Donovan, secretary of the U.S. Housing and Urban development said made the statement at a summit. Donovan said that approved FHA lenders will be able to monetize the tax credit in the form of a short term bridge loan. This would allow buyers to have access to the funds at the closing table.
Many of my fellow Minneapolis area Realtors have talked about this exact issue. If this news does become fact in the near future, I have to believe this will help stimulate many first time buyers to purchase a home. With low interest rates, low home prices, and now $8,000 dollars in free money, what more could a buyer be waiting for!
