The latest on the FHA bridge loan to apply the $8000 first time homebuyers tax credit towards a down payment

At about 10 p.m. last night I got an email from Diane Williams, a VARbuzz subscriber, stating that she had heard that the FHA bridge loan had been pulled off the table. She forwarded an email from a loan officer stating that OMB had asked FHA to do it.

Earlier this morning I asked my friends on Twitter if they could shed any more light on the issue. I shortly thereafter received an email forwarded to me that was sent out to Long & Foster agents by David Stevens, currently the President & Chief Operating Officer at L&F (and soon to be FHA Commissioner) stating that the FHA bridge loan had been “pulled back by OMB.”

There is no explanation for this action on OMB’s Web site or HUD’s.

Several blog posts have popped up today explaining the situation. Here’s the best explanation I can find.

Today at NAR’s MidYear meetings, a delegation of Virginia Realtors received a private briefing from Ken Wingert, a senior NAR lobbyist. He explained that HUD is expected to finalize this program next week.

But given the earlier false start, some may choose to treat future announcements with a bit more caution.

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4 Responses to The latest on the FHA bridge loan to apply the $8000 first time homebuyers tax credit towards a down payment

  1. jay seville says:

    good info, Ben. I’ve learned to be skeptical of policy announcements in general….

  2. Steve Trang says:

    The way it was explained to me, there was a hang up due to the fact that nobody can receive your IRS tax refund besides you. The way the bridge loan worked, you would designate the second loan that was bridging your loan as the recipient of your refund. Until they iron out this detail, this hopeful program is dead.

  3. Jim Lee says:

    Several state financing/bond organizations have loan programs predicated on repayment from the 8K tax credit in place and working right now.

    Our Tennessee Housing Development Authority (THDA) is one; most states have organizations like this.

  4. Pingback: FHA bridge loan: “Rumors of my death have been greatly exaggerated” | VARbuzz

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