Great News! Today HUD Secretary Shaun Donovan said the department is developing a way to make the $8,000 first-time buyer tax credit available to borrowers to use for down payment and closing costs, instead of waiting for a tax refunds. HUD wants permission for HUD-approved lenders and nonprofits to issue bridge loans to make the $8,000 available to borrowers at closing. “I expect details within just a few days,” he said.
The National Association of Realtors (NAR) has been working on this, but there were some IRS issues to overcome.
For more see FHA Mortgagee Letter 2009-15 found at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-15ml.doc