Hud fumbles the deal for 1st Time Homebuyers

Homebuyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.This means that 1st time homebuyers still need 3.5% for down payment. If you’re in Central Ohio I can help. I have programs available to monotize the Stimulus from the State of Ohio.


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Updates from HUD on the Monetization of the stimulus for homebuyers

HUD Secretary Donovan’s statement was a “preview” ahead of the formal announcement, which is expected next week along with information about how to apply for the $8,000 bridge loan.

 

I will keep you up to date as the news rolls in

FHA to help with down payment

Yesterday (May 12^th 2009) 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 down payment.  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. 

Clipped from www.hud.gov

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 down payment. 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.

Read more at www.hud.gov