First Time Home Buyer Tax Credit – Use It For A Down Payment On Your Home

Tax Credits for first time home buyers were recently announced by the Obama administration. Yesterday, Secretary of Housing and Urban Development, Shaun Donovan announced that the Federal Housing Administration (FHA) told lenders to inform first-time home buyers that the $8000 tax credit to first time buyers can now be used as a down payment.


This is very good news to many Miami home buyers who have been saving up for their first home. It will be a real boost to the low end Miami real estate market, and may help the local economy, as buyers begin to renovate their recently purchased homes.

Of course there are some restrictions, the main ones being that the home must be a principal residence, and must be purchased before December 1, 2009. Before the announcement by Secretary Donovan, home buyers would have received the tax credit only after filing their 2010 federal tax return.

In addition to helping home buyers, and stimulating the economy, the extra money that first time home buyers will now have available for renovations, will also aid in improving the appearance of the neighborhoods they live in, and thereby boost home values in the future. For those who have never purchased a home before, and who have been saving for a down payment, there has never been a better time to buy.