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WFED On WTOP
Each morning and afternoon, Federal News Radio anchors and reporters talk about the latest federal issues on sister station, WTOP. Further information about those interviews can be found here.
Each morning and afternoon, Federal News Radio anchors and reporters talk about the latest federal issues on sister station, WTOP. Further information about those interviews can be found here.
First time home buyers are having trouble saving for a deposit
May 27, 2009 - 6:43am
| Jane Norris | |
| As heard on our sister station WTOP | |
 Download mp3
|
|
By Jane Norris
FederalNewsRadio
If you are a first time home buyer and you are having trouble saving the deposit, you may be eligible for some help from the Government soon.
Q: The Government has cash available for home buyers?
A: Buyers eligible for the tax credit who apply for mortgages insured by the Federal Housing Administration may soon also be eligible for bridge loans or cash advances up to $8,000 that they can use for the down payment, closing costs or other loan expenses pending receipt of their tax credit check from the IRS.
Housing and Urban Development Secretary Shaun Donovan announced the FHA change this month.
The idea, he said, is to "monetize" turn into immediately spendable cash a tax credit that often is not received until months after the settlement date.
Q: How do they do this?
A: Under guidance drafted by the FHA, all lenders approved to do business with the agency will be authorized to provide bridge loans at closing secured solely by the tax credit the borrower anticipates receiving.
State and local government agencies and nonprofit organizations approved by the FHA will be allowed to offer either bridge loans or second mortgages secured by the house.
Although the $8,000 tax credit carries the name "first-time homebuyer," eligibility extends to anyone who hasn't owned a principal residence during the past three years.
The credit amount from the IRS is the lesser of 10 percent of the purchase price of the dwelling, or $8,000.
Q: Is there a deadline?
A: Would-be buyers who believe they are eligible for the federal credit shouldn't sit around, becasue deadline is Nov. 30.
Even though the loans will take some time to get to the market the odds are good that by the time they're ready to get a mortgage and go to closing, at least some local FHA-approved lenders will be actively in the market with bridge loans.
FederalNewsRadio
If you are a first time home buyer and you are having trouble saving the deposit, you may be eligible for some help from the Government soon.
Q: The Government has cash available for home buyers?
A: Buyers eligible for the tax credit who apply for mortgages insured by the Federal Housing Administration may soon also be eligible for bridge loans or cash advances up to $8,000 that they can use for the down payment, closing costs or other loan expenses pending receipt of their tax credit check from the IRS.
Housing and Urban Development Secretary Shaun Donovan announced the FHA change this month.
The idea, he said, is to "monetize" turn into immediately spendable cash a tax credit that often is not received until months after the settlement date.
Q: How do they do this?
A: Under guidance drafted by the FHA, all lenders approved to do business with the agency will be authorized to provide bridge loans at closing secured solely by the tax credit the borrower anticipates receiving.
State and local government agencies and nonprofit organizations approved by the FHA will be allowed to offer either bridge loans or second mortgages secured by the house.
Although the $8,000 tax credit carries the name "first-time homebuyer," eligibility extends to anyone who hasn't owned a principal residence during the past three years.
The credit amount from the IRS is the lesser of 10 percent of the purchase price of the dwelling, or $8,000.
Q: Is there a deadline?
A: Would-be buyers who believe they are eligible for the federal credit shouldn't sit around, becasue deadline is Nov. 30.
Even though the loans will take some time to get to the market the odds are good that by the time they're ready to get a mortgage and go to closing, at least some local FHA-approved lenders will be actively in the market with bridge loans.
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Today's Headlines
Federal government operating status for Wednesday up in air
Johnson sworn in as GSA administrator by phone
Closings set historic record for federal gov't.
Air Force sets new date for tanker RFP
Tanker deal in question after Murtha's death
Sen. Shelby releases hold on nominees
GAO: NASA IT security has a problem
Federal government grows smaller
Ocean snails may save soldiers' lives
NOAA Climate Service Office proposal heats up
QHSR: Crowdsourced and complete
How to attract, motivate and retain employees
CRS finds federal CTO role remains undefined
Ag Secretary pushes school nutrition plan
TPM chip hacked, is your business at risk?
Expert: cybersecurity requires a paradigm shift
Rep. John Murtha, Iraq war critic, dies at 77
VA sets rules for set-aside program
US faces `serious and significant' cyberthreats
OMB to dash(board) to better management
TSP Snapshot: Look past the thorns of January
Great tax deductions to remember
From proposal to law: the 2011 budget explained
Fed insurance carriers meeting health IT standards
Nominations for The Causey are now open
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