Stan Suther's Real Estate and Stuff

I told you last week that HUD has decided to allow FHA approved lenders to offer a bridge loan in order to enable first time home buyers to use the $8,000 tax credit for additional down payments and closing costs (FHA still requires the buyer to provide a minimum 3.5% down payment).  I’ve talked to several lender reps about this, and they all say their companies are still working out details on how they’ll do this.  This bridge loan money will come from the lender, not the feds, so the lenders have to figure out how they want to do this and what interest rate they’ll charge for the term of the loan.  I still have not gotten an answer as to whether this has to be an FHA loan or just underwritten by an FHA approved lender.  As soon as I find out from a lender that they’re ready to make this happen, I’ll let you know the details.