As we expected – this morning FHA rescinded the notion that the $8000 tax credit for 1st time home buyers could be used as down payment on a home. As my prior blog indicated – it was an idea that sounded good, but just not enough thought was put into the mechanics of implementation. The media grabbed a hold of the “idea” and made it sound like it was fact (very irresponsible in these times, but it sells readership and ratings and that is what is most important to that industry).
That being said, there are some states and non-profit organizations that are seriously looking into offering short term “bridge” loans to possibly accommodate the idea of using the credit for down payments. The success of this will depend largely upon how deep the pockets are of the non-profits and/or state budgets. You still have the issue of whether the buyer’s lender will allow and underwrite this loan.
In any event, be sure to consult with your professional Realtor who can keep you informed on what is REAL and what programs are available in your local market area. Each market is different.
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.