I just read this blurb over the newswire and thought it merited a blogpost.
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. 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.
I’m not certain exactly how this will be delivered, but it sounds very interesting. Although it also sounds potentially disastrous to create a slapdash government department for these “short term bridge loans”. But hey, I’m all about folks getting the very best deal with what is available! For a link to the full press release CLICK HERE