Unconfirmed rumors have been circulating for a few weeks now … but today it’s a fact: the Federal Housing Administration will now allow qualified home buyers to apply the $8,000 tax credit when purchasing a home.
FHA will now permit its lenders to provide a short-term bridge loan that will let qualified home buyers use the tax credit to either make a larger downpayment above the FHA required 3.5 percent, cover closing costs, or buy down their interest rate.
Shaun Donovan, secretary of the Department of Housing and Urban Development, announced the change today. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans allowing eligible home buyers to access the funds immediately at the closing table.
Honestly, I don’t know how many more incentives can be thrown at this to make it clear that right now is a great time to buy a home, especially if it just fits with all of your other plans (such as, will you live here awhile). Now’s the time, folks.
This also probably explains why more and more of my clients are stepping up and making a move. Call me if you have any questions — I don’t bite (really!) and I love to provide information and help. No pressure. Only results.