Wednesday, May 13, 2009

FHA Close to Monetizing First Time Homebuyer Tax Credit!

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In a video news report by Frank Garay and Brian Stevens of, they reported the news that HUD is getting close to allowing the monetization of the First Time Homebuyer Tax Credit. In his prepared remarks, Secretary of HUD, Shaun Donovan, cited an estimate by the National Association of Home Builders that this new tax credit will stimulate 160,000 home sales across the nation - 101,000 of which will be first time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first time buyer purchased their home.

When FHA allows the monetization of the new tax credit, this means that HUD will allow FHA-approved lenders, HUD-approved non-profits, as well as state and local governmental entities to "monetize" the tax credit through short term bridge loans. In short, the tax credit can become part of a homebuyers' down payment!

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