THE CHICAGO FORECLOSURE BLOG

The U.S. Housing and Urban Development Secretary announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home.

Currently, borrowers applying for an FHA-insured mortgages are required to make a minimum 3.5% down payment on the purchase of their home. The law allows approved lenders to utilize the tax credit as an additional down payment and or closing costs after the buyer meets this initial minimum down payment, which can help achieve a lower interest rate.

According to estimates by the National Association of Home Builders, the Administration's homebuyer tax credit will stimulate 160,000 home sales across the nation-101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home.

What a great time to get in the market LOW, and get PAID to do it!