NAHB touts tax-credit policy change

WASHINGTON – In a move that is being lauded by the National Association of Home Builders (NAHB), the U.S. Department of Housing and Urban Development has taken steps to allow consumers to use the $8,000 first-time homebuyer tax credit toward a down payment or closing costs.
“The biggest obstacle for first-time buyers is coming up with a down payment,” NAHB Chairman Joe Robson said in a statement. “We commend [HUD Secretary Shaun Donovan] for acting decisively to enable buyers to access the tax credit at the time of closing. This will help to stimulate home sales, stabilize housing and get the economy back on track.”
HUD announced that Federal Housing Administration-approved lenders, federal, state and local agencies and FHA-approved nonprofits can supply homebuyers with short-term bridge loans of up to the $8,000 federal credit, according to NAHB. Without HUD allowing the loans, first-time buyers would have had to wait until they filed their next tax return to receive the refund.
The National Association of Home Builders, a trade group founded in 1942, produces in-depth economic analyses of the home building industry based on private and government data. To learn more, visit www.nahb.org.