$8,000 Tax Credit Soon To Be Accessible at Closing????

$8,000 Tax Credit Soon To Be Accessible at Closing???

HUD Secretary Donovan appeared at a NAR function 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."

What does this mean? It means that HUD is puttting the finishing touches on allowing home buyers to access the $8,000 tax credit for their down payment at closing. This will allow more people to access housing, decrease inventory of existing homes, and allow the economy to possibly rebound quicker.

As we receive more information regarding the tax credit, I will pass it on.