Help underway for First Time Home Buyers

"HUD: Tax Credit Can Be Used on Closing Costs"

First Time Home Buyers eager to be part of the American dream are getting help from FHA.

On a conference this morning HUD has approved FHA-lenders to develop bridge-loans to help first time home buyers pay closing cost.

"FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent."

"Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent down payment."

Source: National Association of Realtors

http://www.realtor.org/RMODaily.nsf/pages/News2009052901?OpenDocument

I will update this post as soon as I have more info.