What Happened To The FHA Plan to ‘Monetize’ The Homebuyer Tax Credit?
The real-estate industry rejoiced when Housing Secretary Shaun Donovan told a Realtor conference earlier this month that the FHA was finalizing policies that would allow first-time buyers to apply an $8,000 tax credit towards the down payment of their home. The gist: The FHA would offer bridge loans that would allow buyers to get a cash advance on their tax credit, to be repaid when the buyer receives their tax credit check from the Internal Revenue Service.
To read the entire article, please visit: http://blogs.wsj.com/developments/2009/05/27/what-happened-to-the-fha-plan-to-monetize-the-homebuyer-tax-credit/
posted by Editor in Chief at 12:41 PM
1 Comments:
I think the gov't is opening up a new can of worms. Who is going to monitor the repayment of this 'bridge loan'; what if the borrower loses a job and doesn't earn enough for the repayment; what about self employed people who don't report enough income.... The list goes on. This is just another example of the gov't giving out info that has to be rescinded. I hope the powers that be will ask experts in the mortgage business (who actually work in it every day) before this new incentive is posted again.
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