Shaun Donovan, secretary of the U.S. 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’s remarks came in an address to several thousand REALTORS®, including 130 from Michigan, who are in Washington D.C. this week for the annual REALTORS® Midyear Legislative Meetings & Trade Expo.
Secretary Donovan said that important changes, which the National Association of REALTORS® has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
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Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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{ 5 comments… read them below or add one }
Richard Stabile Bergen County Real Estate 05.21.09 at 9:48 pm
Using a FHA loan with 3.5% down, it is a compelling reason for a buyer to step up. Along with low rates, lower prices people should take advantage of this market.
Kristy Dunnigan 06.07.09 at 11:01 pm
Any luck finding a lender doing this yet?
Tim Bryan 04.07.10 at 5:19 pm
I had no idea that you could use it as a downpayment… Great find!
Tim Bryan
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Tim Bryan´s last blog ..How BryanWoodUrns Started
James Mucci 04.12.10 at 10:42 pm
Just a few weeks left to get into contract for the extension of the first time buyer tax credit.
I have not heard of any more extension rumors this time, have you?
Also I am wondering have you had any loans that the client was able to use the refund as a down payment?
James Mucci is a MI refinance professional
James Mucci´s last blog ..Wondering Why it’s So Hard to Get a HELOC?
rogwilsmith 07.22.10 at 11:19 am
good one. Nice and good site