Springfield Area Blog

On Tuesday, The Department of Housing and Urban Development's Federal Housing Administration said it will allow first-time homebuyers to use the federal tax credit of up to $8,000 for a downpayment at closing. The idea is to allow home buyers to “monetize” the $8,000 first-time homebuyer tax credit. Right now, home buyers must wait until they file their taxes to receive the credit.

Under the plan, FHA will allow approved lenders and nonprofits, and state and local government agencies to fund short-term bridge loans buyers can use for down payments. Buyers would repay the loans after getting their tax refunds.

This could be good news for first time home buyers, which are trending to account for 53% of home purchases in 2009. Unfortunately, at this time there isn't much we can do until the details of the program are fully released, and in turn accepted by lenders.

Courtesy of Gorman and Gorman