Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the  $8,000 Florida First Time Home Buyer tax credit toward the purchase costs of a FHA-insured home.

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today’s announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to “monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FL FHA Loans - approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA’s new mortgagee letter, visit HUD’s website.

Families will now be able to apply their anticipated tax credit toward their home purchase right away. Lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their down payments via secondary financing provided by the HFA or non-profit. In addition to the borrower’s own cash investment, FL FHA Loans allows parents, employers and other governmental entities to contribute towards the down payment. First-time homebuyer’s anticipated tax credit under the Recovery Act can be applied toward the family’s home purchase right away.

Photos of the front yard/pasture. The stone pile are native Coquina rocks, the same material that the Spanish used to build the Castillo de San Marcos at St. Augustine.