How to Use the Tax Credit with FHA Loans

US Department of Housing and Urban Development (HUD) announced a program that allows borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on a FHA-insured mortgage. Currently, 10 state housing finance agencies, INCLUDING NEW MEXICO, offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. For information on how a first-time homebuyer can use the tax credit for a down payment in New Mexico, please consult the New Mexico Mortgage Finance Authority webpage: use the tax.