The Department of Housing and Urban Development announced on Tuesday that the Federal Housing Administration is going to permit its lenders to allow 1st-Time Homebuyers that meet the requirements to use the $8000 tax credit as a downpayment.
Speaking at the mid-year National Association of Realtors Meeting in Washington, D.C., Shaun Donovan, the HUD Secretary said “We all want to enable FHA consumers to access the First-Time Home Buyer Tax Credit funds when they close on their home loans so that the cash can be used as a down payment,” He said that FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans – which allows eligible 1st-Time Homebuyers to access the funds at the closing table.
In comments about the housing market, Donovan said, “I do think we have some early signs hat the market overall is stabilizing. …Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”
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