The recently passed $8,000 Tax Credit Down Payment Assistance program passed by the State of Florida seemed doomed when FHA announced that the assistance program could not be used as down payment. The program isn't doomed but FHA has set some guidelines.
You still must have 3.5% of your own funds (or funds gifted from family members) to put toward the down payment. However, the $8,000 tax credit can be used toward closing costs, interest rate buy down or as additional down payment above the 3.5% required. This will still help those individuals who could come up with a portion of the funds needed but couldn't come up with 3.5% AND closing costs. Let's face it, when you're buying your first home you can use all the help you can get.
The Down Payment Assistance program should start some time in July (no definite date has been set yet). Just remember that in order to qualify for the $8,000 tax credit the home must be purchased by December 1, 2009.
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