The government has issued a $8000 tax credit as an incentive for first time homeowners to purchase a house. There has been a mixed reaction if this tax credit is working or not, however I have seen more agents use it in their marketing to drum up new business.
One of the most creative strategies is using the $8000 tax credit as a bridge loan for the down payment and/or closing costs on a house.
This can be extremely attractive to a buyer since they don’t have to have as much cash in the bank for their downpayment.
This is also beneficial to the home seller since the potential buyer would have more resources to actually buy the house.
If you want to learn more about this tax credit and what it means, please visit this FAQ on the $8000 tax credit
If you have any success stories already using the tax credit to buy or sell a home for a client, please let us know in the comments.
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Well, I learn something new every day. I probably wouldn’t need to take advantage of this though. People buying in New York City and especially Manhattan are almost certainly not first time homeowners…