You may remember I wrote a post about how you could use the $8,000 tax credit as a down payment for a Salem Oregon home with a “new plan” that was announced, only to retract it 24 hours later. Confused

So…in order to make things “easy”…cough, cough… for first-time home buyers the government had an announcement about this subject.  So what’s the deal?

The tax credit has been approved on FHA loans, but wait…you can’t use it towards the 3.5% down payment part when you actually purchase a house.  So essentially you can use it for closing costs, BUT you can’t get the credit early and do that because that would be fraud.

Jeff Belonger wrote a really good post on this, so I’m just sending you to his post to explain it all.  In true government fashion, it is so convoluted and difficult, that well bottom line…you should just take the tax credit when you file your taxes.

Related posts:

  1. The gov’t giveth and the gov’t taketh away…
  2. Why you should care about the Wall Street Mess in Salem Oregon
  3. Update on the new home buyer tax credit
  4. Back to the beginning