HUD Secretary Donovan appeared at a NAR yesterday, and this is an exact excerpt of his remarks:
“We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to “monetize” the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly.”
Okay – so what does that MEAN? It means that they are about to “officially” put their stamp on approving the process (and authority) on who/where/why/when a first-time homebuyer can get a LOAN for the $8000 tax credit – to be used as part of the required down payment!
THIS IS HUGE! As soon as the “official” announcement is out, we will get it to you. For now, if you are inside the transaction process of buying a home, all you can do is cross your fingers that this happens soon enough that you can take advatage of this if you choose. If you are considering on buying a house, know that this may drag on a month or two…be prepared to wait if you must.