Chandler, AZ - HUD Secretary Shaun Donovan at the 2009 National Association of Realtors Real Estate Summit pre-announced a new program coming from FHA Home Loans. FHA Home Loan Mortgage Programs will soon allow qualifying first time home buyers to use their $8000 housing tax credit to help with their down payment and closing costs at the time they get their home purchase mortgage.
FHA To Initiate Short Term Bridge Loan For Housing Tax Credit
Details of the FHA plan to allow first time home buyers to use their $8000 home purchase tax credit ahead of getting in their 2010 tax return have not been fully released. However, HUD Secretary Donovan did suggest at the NAR meeting is that the home buyer will be extended a short term bridge loan through their FHA lender to help the home buyer with their down payment and closing costs.
This is excellent news for first time home buyers who plan to buy a home using an FHA home loan. Up until now, the $8000 tax credit, which was authorized by the 2009 American Recovery and Reinvestment Act, only benefited the home buyer long after their home purchase when the home buyer filed their 2009 tax return in 2010. As a result of this delay many first time buyers were still left with the challenge of coming up with their down payment and closing costs.
According to the HUD Secretary, with the new change with FHA and its short term bridge loan, there should be an influx of home buyers into the US housing market - which should help to further stimulate the US economy.
Many states around the US have instituted their own version of a short term loan program to help with getting their resident home buyers access to the housing tax credit ahead of time.
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