I'm sure you've heard of the $8000.00 first time homebuyer tax credit.  That's a great credit and you can even ammend your 2008 taxes and get the refund after settlement.  That's all fine and well, but what if you need the $8000 to go towards your downpayment?  Now the FHA is going to work with their approved lenders to do a sort of bridge loan so that first time buyers can take advantage of the credit BEFORE BUYING and use it towards their downpayment.  We don't have all of the details yet and it sounds like the kinks are being worked out, but if this works out, renters can more easily become buyers.

A first-time homebuyer in our area would be in about the $200,000 to $300,000 price range, most likely purchasing a condo or townhome, but in a few areas you can even buy a single family home.  You would normally need a minimum of 3.5% for a downpayment, so about $7000-$10,500 out of pocket cash.  You can be "gifted" this downpayment from Mom & Dad if they are feeling especially generous, but if you are like most people, Mom and Dad want you to come up with the money yourselves (or their 401Ks have been depleted so they don't have it to give!). 

If FHA lenders can stay within the guidelines and work out bridge loans to enable you to use this $8000.00, that would cover your entire downpayment for a $200,000 condo and most of it as you get closer to $300,000! 

This is the opportunity that many people who are renting have been waiting for.  If your credit is decent, about 620 FICO and above, your American Dream could come true soon. 

We work with several great local lenders who can explain how this works and see if you're qualified to become a homeowner. Several of them provide free credit counseling and repair and will work with you over time to get you qualified for your loan, just give us a call and we'll provide you with all the information you need.

Here's the announcement of this big story:

http://www.realtor.org/press_room/news_releases/2009/05/re_summit?lid=ronav0019

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