Do You Qualify for A Tax Credit for FHA Home Loans on Your First Home?

The first time homebuyer’s tax credit for FHA (Federal Home Association) home loans is a government-approved program for homebuyers to use tax credit for FHA home loans.

This can be used to closing costs.

The borrowers of first-time homebuyers tax credit for FHA (Federal Home Association) home loans have been issued bridge loans authorized by FHA lenders and HUD (U.S. Department of Housing & Urban Development) approved non-profit groups.

Biblemoneymatters states that this would allow the borrower to use the amount of their tax credit before they actually receive money.

First-time homebuyer’s tax credit for FHA (Federal Home Association) home loans makes it more accessible for people to be able to buy their own homes.

fha home loansAccording to fha.com, ten percent (10%) of the purchase price of the house up to $8,000 is the agreed amount of tax credit for the first time homebuyer’s tax credit for FHA (Federal Home Association) home loans.

This means that even if the purchase price is $100, 000, the tax credit will still be $8,000 as this is the maximum amount. If it $75,000, the tax credit would then be $7, 500 as it is 10% of the said sale price.

This first-time homebuyer’s tax credit for FHA (Federal Home Association) home loans can be used before the money is placed in the bank account. If the borrowers are using the money to pay for their FHA loan’s closing expenditure, they can be given a bridge loan for the sum of the tax credit by the FHA lender or the HUD-approved non-profit group.

Because this is only short term, the borrowers must pay it back as soon as the FHA tax credit has been received by the IRS after-tax filing.

This provision on the first time homebuyer’s tax credit for FHA (Federal Home Association) home loans is an immense help for people who have limited funds available and find it hard to pay closing costs of the FHA loan.

It is only the bridge loan that must be paid back and not the tax credit. This means that for a person utilizing the first time homebuyer’s tax credit for FHA (Federal Home Association) home loans with a bridge loan of $4,000 and a tax credit of $8,000, only the $4,000 will be paid back and the rest is theirs to keep.

It is vital to take note that the first time homebuyers tax credit for FHA (Federal Home Association) home loans have different terms than the bridge loan. Therefore, the FHA mortgage will be set aside from the FHA rates, terms, and the means and setting to pay the money.

Persons interested in the bridge loan should greatly give careful though on the detail of the loan and ensure awareness on the amounts, schedule, and means to make the payments.

Once everyone comprehends, they would realize that the first time homebuyers tax credit for FHA (Federal Home Association) home loans is, in general, a great encouragement to consider FHA mortgage loans.