First Time Homebuyer Credit
HUD has just announced that detailed guidelines on the federal government's plan to provide short-term loans to borrowers using the First Time Homebuyer Tax Credit is expected to be out shortly but a spokesperson from the U.S. Department of Housing and Urban Development, which is writing the guidance, couldn't give a firm release date.
The short-term loan program, which would effectively monetize the first-time homebuyer tax credit by permitting eligible lenders to make bridge loans collateralized by the borrower's expected tax credit, was announced by HUD Secretary Shaun Donovan at the Real Estate Summit the National Association of Realtors® hosted on May 12 during its 2009 Midyear Legislative Meetings in Washington.
It's unclear at this point what shape the guidance will take and whether authorization for the loans will be available across the board or only in states in which the state housing finance agency already has a tax credit bridge-loan program in place.
I will keep you informed regarding the release date of the guidelines as they become available. Call me if you have any questions.