HUD announces plan to offer bridge loans for $8000 first time homebuyer tax credit

Today at NAR’s Midyear Legislative meetings, HUD Secretary Donovan announced that the housing agency is planning to offer bridge loans to allow first time homebuyers to use the $8000 tax credit towards their down payment. As an aside, we have also heard — unconfirmed rumor at this point — that VHDA is planning a similar program. We’ll announce details as they become available.

NAR’s Speaking of Real Estate blog says details will be announced during Secretary Donovan’s keynote address.

UPDATE: Here is the text of Secretary Donovan’s prepared remarks, given during his keynote address this afternoon:

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.

This entry was posted in Uncategorized. Bookmark the permalink.

3 Responses to HUD announces plan to offer bridge loans for $8000 first time homebuyer tax credit

  1. Pingback: Details of FHA’s $8000 first time homebuyers tax credit bridge loan | VARbuzz

  2. I think this tax credit should be allowed for ALL primary and second home buyers not just qualified First Time Homebuyers. This will open up a lot of opportunity for the housing industry. I do recommend a timeframe with allowable extensions.

  3. David Harris says:

    I think that the tax credit $ should be available to use for down payments such as recently announced by HUD and FHA.Also,increasing the amount for lower income people would help greatly,but I think they should have to use it toward their down payment so they don’t spend it on things like drugs,alcohol,vacations,or at least a substantial portion should have to be used for the down payment.Also, it should be opened up to people purchasing their second home or vacation property with strict income limits so as not to give it to people who really don’t need it because they are wealthy already.

Leave a Reply

Your email address will not be published. Required fields are marked *