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HUD Secretary says Columbus area Home Buyers don’t have to wait for the Eight Grand tax credit
May 12th, 2009 categories: Bexley, Clintonville, Columbus News, Condos & Lofts, Downtown, For Home Buyers, For Home Sellers, German Village, Grandview, Mortgage/Finance, Olde Towne East, Real Estate News, Short North
Wait a minute. All I have to do is pick a house and HUD will give me an $8,000 down payment?
Although nobody called me for the panel of distinguished guests at the mid-year meeting of the National Association of Realtors today in Washington D.C., I have found out that Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, decreed today that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment.
Secretary Donovan went on to say, “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,” According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Is this great for Columbus area first time home buyers? You bet! You can read more about it here.
On the flip side, It seems to me that this is typical of the American ‘gotta-have-it-now’ mindset and all too reminiscent of the sort of ‘lend to anyone with a home buying twinkle in their eye’ mentality that got us into this mess. Don’t have enough money for a down payment? No problem, here’s $8,000.
And, since you’re wondering anyway, that means that you could purchase about a $228,000 Columbus area home with no out of pocket down payment if you’re going with an FHA loan product and their 3.5% minimum down.
Richard Stabile Bergen County Real Estate
May 26th, 2009
That is another great thing to keep this market going. We have picked up quite a bit. We need the rates to hold at these levels and I think we can continue a turn around.
Inchirieri Apartamente
June 26th, 2009
I’m not full agee with what you said Richard in your comment : “That is another great thing to keep this market going. We have picked up quite a bit. We need the rates to hold at these levels and I think we can continue a turn around.”