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$8,000 Tax Credit being used for FHA down payment - bridge loan

By
Real Estate Agent with Realty Professionals, Inc.

About 10:30 this morning HUD Secretary Shaun Donovan said the department is seeking a way to make the $8,000 first-time buyer tax credit available to borrowers to use on down payment and closing costs, instead of waiting for their tax refunds. HUD wants permission for HUD-approved lenders and nonprofits to issue bridge loans to make the $8,000 available to borrowers at closing. "I expect details within just a few days," he said.

NAR has been working on this and ran into problems with the IRS because the tax refund is not to go to someone other than the Tax Payer.

Again, this was released today and as Secretary Donovan stated, he expects details in the next few days.

Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

That's interesting, Larry.  I had not heard it.  Thanks for sharing.

May 12, 2009 02:05 PM
Dawn Tittsworth
ReMax Patriots 717-676-0189 - Stewartstown, PA
Realtor - Buyers York County

York County Pennsylvania here!

 

Wow! That will be like christmas for alot of people. I have several buyers on the fence due to funds at clossing. lets keep our fingers crossed. :)

May 13, 2009 01:43 AM
James Dray
Fathom Realty - Bentonville, AR

I went to a meeting Wednesday and was told it does not work in Arkansas but does in Missouri.. Have you any updates?

May 22, 2009 12:35 AM