HUD recently announced a program authorizing FHA-approved lenders to develop bridge-loan products allowing first-time homebuyers to apply the $8,000 tax credit towards their closing costs, buying down their interest rate, or contributing more than the minimum 3.5% downpayment. However, the new program does not allow the $8,000 tax credit to be applied towards the minimum 3.5% downpayment requirement. Specific details of the plan will be announced in the near future.
The Tennessee Housing Development Agency (THDA) recently implemented a Stimulus Second Mortgage Program to assist buyers who cannot meet the 3.5% downpayment requirement. To qualify for this program, THDA must provide the funding for the initial mortgage.
Click on the links below for additional information.
Announcement Regarding New HUD Program (REALTOR® Magazine)
The Basics: 2009 First-Time Home Buyer Tax Credit
First-Time Homebuyer Guide/FAQ
THDA Stimulus Second Mortgage Program
[Source: WCAR]