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Legacy Mutual Mortgage has been authorized to use the First Time Homebuyer tax credit towards the required FHA 3.5% down payment! However, it’s important to note that there are many restrictions in regards to this program. My suggestion is, if you are struggling to come up with your minimum 3.5% FHA contribution, contact me so I can determine if this is a viable option for you. The following are a few of the guidelines that I feel are the most important to remember:

· The cash advance will be treated as a bridge loan amortized over 24 months at 10% interest and MUST be included in your debt to income for qualifying purposes.

· The maximum debt to income is 41%

· The income restrictions are $75,000 for single and $150,000 for married

· Assistance available equal to 5% of the first lien amount or up to $7000

· Homebuyers MUST take a homebuyer education course prior to loan closing

· You cannot have owned a property within the last 3 years to qualify

· There is only enough money allocated to this program for approx. 700 homes so the money WILL run out

I hope you find this information helpful and don’t hesitate to contact me if you have any questions.