Shaun Donovan, secretary of the US Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment. Donovan was speaking to the National Association of Realtors.
Donovan said that important changes will help consumers to purchase a home. HUD wants to allow FHA consumers to access the home buyer tax credit funds when they close on their home loans so they can be used as a down payment. According to Donovan, FHA lenders will be allowed to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the money at the closing table.
We have not seen any information from HUD or FHA with what they will allow and so until we see that, we can't use the money yet. We don't know when that information will come and what the rules will be – but this could help home buyers that are having trouble coming up with the required down payment for FHA loans. As soon as I have more information on this, I'll be sure to update this!
Leslie Vanderwerf, Advisors Mortgage - lvanderwerf@advisorsmtg.com – Website
