1st Time Home Buyer Stimulus Monies coming to a Closing Table near You

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidlines, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.
The loans can’t be used to cover the minimum 3.5 percent. 

Of course I’m wondering exactly how long this will take to be a reality in Central Ohio and how much longer it will delay a potential closing that may already have been delayed by new appraisal restrictions.

In addition, The Ohio Housing Finance Agency has developed its own tax credit bridge loan programs, so Ohio home buyers can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.