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The $8000 tax credit can now be used as a down payment in Buena Park, California.

Shaun Donovan, the Secretary of the US Department of Housing and Urban Development, said that the FHA is going to permit its lenders to allow first Time Home Buyers to use the $8000 tax credit as a down payment.

Secretary Donovan said that these important changes may help California First Time Home Buyers come up with a down payment to purchase a home.

According to Donovan, speaking at the NAR Real Estate Summit on May, 12, 2009, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans,which will allow eligible home buyers to access the funds immediately at the closing table.

Donovan said the Obama administration plans to further stabilize the housing market.

“I do think we have some early signs that the market overall is stabilizing,” said Donovan.

“Since January we’ve seen both home sales moving up and down around a relatively stable number, and we are seeing the first signs that the rapid decline in home prices is starting to abate.”

*This information was released by CAMB in a recent legislative update on May13, 2009.

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Mark 1 Mortgage
California FHA Approved Lender
Chris Egan
714-403-6824
cegan (at) m1m.com