States Make Bridge Loans Available to First-Time Home Buyers
Posted by TheHomeCart.com on Saturday, May 23rd, 2009 at 11:02am.Many states started monetizing the first-time homebuyer tax credit before the U.S. Department of Housing and Urban Development (HUD) announced its plan to do so. Nearly a dozen states make bridge loans (advance loans) available to households that want to claim the tax credit, Brian Summerfield reports in REALTOR® Magazine. The loan is repayable with proceeds from the first-time homebuyer’s tax credit.
On May 13, HUD Secretary Shaun Donovan
announced the department will allow consumers to obtain a bridge loan,
repayable with proceeds from their tax credit, to help cover their down
payment. Guidelines for the new policy will be released shortly.
For states to consider offering bridge
loans, they need to be convinced they will get a return on the investment
or at least break even. The first state to offer bridge loans was Washington.
The Washington REALTORS® association convinced state treasury officials
that the money loaned to home buyers would be paid back when tax credits
took effect and that the state’s funds would increase from new tax
revenues. The association put up $400,000 to help cover the risk.
While there was some debate as to if Mr. Donovan was misquoted, a May 22, 2009 article on REALTOR® Magazine indicates that the bridge loans for First-Time Home Buyers is still on track. "The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® magazine Wednesday afternoon.
Our select team here with TheHomeCart.com and Cherry Creek Professionals Realty is committed to meeting all of your Colorado real estate needs. We use the latest technology and utmost degree of customer service to enhance your real estate buying and selling experience. Our team services the Denver Metro area helping buyers and sellers with homes, townhomes, condos, lofts, and investment properties. We specialize in offering relocation assistance for local, national and international buyers of homes and properties here in colorful Colorado. For more information about buying or selling your Denver area home, please contact us here at TheHomeCart.com.
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