Soon, that $8000 will be available at closing
Soon, FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table. Shaun Donovan, HUD Secretary said yesterday,
We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment.
This is not really news, yet.
Details haven’t been worked out yet. That’s why I say soon. I will get details to you when they are ready. We’ll see how the bureaucracy plays out on this one, but it could make things easier for people who are already in a position to buy. Depending on how much red tape will be involved, this change could take away the biggest flaw in the $8000 tax credit: that the credit is tied to income tax filings.
As I have said before, I do not think the $8000 credit turns non-buyers into a buyers. I think it will ease the path for those who were planning to buy anyway.
If you are still confused about the $8000 credit, here are some resources: a video with a tax accountant: and a one-page summary.
Would-be buyers, does having the $8000 available at closing make a difference to you?
