It appears that the new tax credit of $8000 can be used for a down payment. There is some confusion about how it all works, and more confusion about whether the tax credit can be used.
One newspaper in AZ reported a fairly even report about the issue. The comments also give a few different perspectives about the usefulness of applying the credit to a down payment.
Whether it is used as a down payment or as a tax credit, it is still eight grand toward a new home! In my area, the foreclosures can all use $8K in fixes, so allowing that credit to be used as a down payment so the buyer can use their cash to fix things doesn't seem all that bad an idea.
If you know someone who hasn't owned a home in the last three years, they qualify as a first time buyer and can get the credit.
Happy listing and selling!
Heath Coker, Owner of Cape Group Real Estate
www.CapeGroup.com / capegroup@capegroup.com
508-548-8888 Licensed in MA
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Heath ... The tentative letter on this from HUD is confusing. It is my understanding that HUD has now rescinded its prior approval for use of the $8000 income tax credit, which now cannot be used as down payment. Please check it out. Thanks for the post.