Fed tax credit converting into cash (general)

by stevek, Monday, May 25, 2009, 12:32

Fed tax credit converting into cash

By Kenneth R. Harney / The Nation’s Housing
Sunday, May 24, 2009

The $8,000 federal tax credit for first-time home purchasers is about to morph into a ready-cash down payment source, thanks to a new federal policy change.

Buyers eligible for the credit who apply for mortgages insured by the Federal Housing Administration (FHA) may soon also be eligible for bridge loans or cash advances - up to $8,000 - that they can use for the down payment, closing costs or other loan expenses pending receipt of their tax credit check from the IRS.

Housing and Urban Development Secretary Shaun Donovan announced the FHA change May 12 in a speech to the midyear convention of the National Association of Realtors. The idea, he said, is to “monetize” - turn into immediately spendable cash - a tax credit that often is not received until months after the settlement date.

Finish reading this at: Boston Herald