First time home buyers, Tax credit and FHA
Here is some great news for first time home buyers using a FHA loan to make their purchase. FHA will now allow the borrower to use the tax credit to establish a temporary bridge loan prior to closing. In doing so, the borrower can then use the tax credit at closing to A. make a larger down payment, B. Buy down their interest rate, C. Pay for closing costs. This is a new change and should help folks with the buying process. Just a reminder, the tax credit ends November 30th. The typical purchase time frame is 15-30 days find a lender, find the right house and another 20-45 days to execute the contract. So if you are still sitting on the fence jump off and give me a call. Don’t let this great opportunity pass you by.
Take care,
Mike