HUD: Stimulus tax credit can be used on first-home purchase - Kansas City Business Journal:

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Under the American Recovery and Reinvestment Actof 2009, first-timwe homebuyers can qualify for the tax creditg for purchasing their first home after filing theifr taxes. But under a new program announcefd Friday, state housing finance agencies and nonprofit groups can advanced money to homebuyers up to the full amoun of their tax credit so the money can be used on a home either to pay closing costs or to add to adown "Home buyers using FHA-approved lenders can apply the tax credit to theirr down payment in excess of 3.
5 percent of appraisedx value or their closing costs, which can help achiever a lower interest rate," a HUD announcement "Families will now be able to applhy their anticipated tax credit toward theidr home purchase right away," Donovan said in the announcement. "At the same time we are puttinh safeguards in place to ensure that consumers will be protected fromunscrupulouds lenders. What we're doing today will not only help thesse families to purchase their firsf home but will present an enormoud benefit for communities strugglinb to deal with an oversupplyof housing.
" The stimuluds tax credit can be claime d on a taxpayer's 2009 return, or through an amendedc 2008 return. FHA will stil require that homebuyers paya 3.5 percentr down payment. HUD cited Nationak Association of Home Builderes data showing thatthe first-time homebuyer tax creditr will stimulate 160,000 home sales across the with 101,000 of those sales beinv to first-time buyers and 59,000 to existing homeowners who be able to sell thei r home to a first-time .