FHA allows $8,000 to be used as downpayment

Consumers across the country can now take advantage of a Federal Housing Administration program to allow qualified home buyers to apply the $8,000 tax credit when purchasing a home. FHA will now permit its lenders to provide a short-term bridge loan that will let qualified home buyers use the tax credit to either make a larger downpayment above the FHA required 3.5 percent, cover closing costs, or buy down their interest rate.

This will help many potential buyers break into the homeownership role and take advantage of today's low interest rates and competitive housing prices.

The deadline is December 1, 2009!