A couple weeks ago a letter (HUD Mortgagee Letter 2009-15) was posted on the U.S. Department of Housing and Urban Development website authorizing "first time" home buyers to use the $8000 tax credit for closing costs, pre-paids, and down payment
A couple days after the letter was posted, it mysteriously disappeared, leaving everyone scratching their heads.
On May 29th, the letter repapered - so I guess its official - the $8000 tax credit authorized under the under The American Recovery and Reinvestment Act of 2009 can be applied towards closing costs.
What this does, is it lets the borrower tap into the $8,000 at closing, rather than wait for the credit at the end of the year as a tax refund. What a great deal!
An important point to remember - Under this program a "First time" home buyer is defined as "Taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase."
So if you haven't owned a home in the past three years - you've been renting, living overseas, in a dorm or living with family you probably can qualify for this program.
If you're planning to purchase a home in the Charleston, South Carolina tri-county area and you'd like know more about this program or if you'd like to know if you qualify call Tara Derouen, Carolina One Mortgage at 843.974.6223 or Toll Free at 888.660.6037, or you can email her at Tara.Derouen@gbmail.com
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Happy House Hunting!