That's right, you read that correctly! Secretary Donovan of the U.S. Department of H.U.D. announced that the Federal Housing Administration is going to allow lenders to do a form of "bridge loan" for the up to $8,000 tax credit so that FHA buyers may use these funds toward their down payment instead of waiting until they file their income tax return to get a refund.
The National Association of Realtors® is having their midyear legislative meetings and trade expo in Washington, D.C., "The Real Estate Summit - Advancing the U.S. Economy". Our Oregon Association of Realtors® President Elect, Krista Bolf of Coldwell Banker Prowest in Ashland, is attending this event with several of her colleagues. I can't wait to hear what else is coming out of this summit!
Where having the up to $8,000 tax credit funded at closing may not be as critical for a buyer who has chosen the USDA Guaranteed Rural Housing loan, it can sure make a world of difference for the FHA buyer trying to meet the 3.5% minimum down payment requirement!
Stay tuned to find out when this funding will be made available.
5/14 Update - HUD Secretary Donovan had to do some quick back-peddling, and the announcement HUD published about approving the upfront funding by FHA lenders of the $8000 tax credit was removed! Maybe we'll see it again...
See you at the closing table!
Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com