In what appears to be the circle coming around...full circle, the Secretary of HUD announced plans to let Lenders Monetize buyers tax credits to be used toward their down payments!
This is a huge step and a somewhat familiar thing as years ago sellers could contribute down payment money to neutral third parties such as "Nehemiah" to effectively pass through money to go toward buyers down payments.
The difference in this new approach is the Governement is ponying up the $8,000 and the lender is making a bridge loan based on the buyers tax credit from uncle Sam.
The details are still being worked out but look for this program to open the door for many many home buyers that were not able to come up with the 3.5% FHA down payment that is required or couldn't qualify for any other programs like DAP etc.
One thing is for sure...the money and offer will NOT last forever...if you have been sitting on the fence now may indeed be the best time to consider purchasing before the money runs out and interest rates go up etc...
Contact us today to discuss your unique real estate situation...