WANT TO BUY A HOME OR CONDO BUT DON’T HAVE A DOWN PAYMENT?

Find a property that qualifies for FHA and $8,000 in ready cash.

Buyers purchasing homes, condos or apartment buildings that qualify for FHA loans may soon be eligible for bridge loans or cash advances.   The advances are for up to $8,000 that buyers can use for down payment, closing costs or other expenses, pending receipt of their tax credit check from the IRS.

The change in federal policy announced on May 12 by the Housing and Urban Development Secretary, Shaun Donovan, will turn into immediately spendable cash – a tax credit that often isn’t received until months after closing.

The advance will allow many more potential buyers to be able to afford to purchase.   Under FHA guidance, all lenders doing business with the FHA will be authorized to provide bridge loans at closing.

Anyone who hasn’t owned a principal residence during the past three years is eligible for the tax credit.   The credit amounts to the lesser of 10 percent of the purchase price or $8,000.   It covers purchases closed by November 30.

Mortgage companies and banks are gearing up now for this opportunity.

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