I received an email from a real estate agent explaining some of the new housing rules.
Hot off the presses today - 'Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.'
Usually FHA buyers have to put down 3 1/2 % of their own money toward the purchase price of the house. If you are buying a $200,000 house this would be $7,000. Under this new program the buyer could use the $8,000 tax credit as their down payment and still end up with a $1,000 from Uncle Sam in their pocket. If you are a first time home buyer or haven't owned a home in over 3 years... this is $8,000 of free money AND you can get a home.
They're basically paying people to buy homes priced $228,000 and under. Aren't free money and loose credit what got us into this mess to begin with?