More on the $8000 First Time Buyer Credit

Here’s some more information on using the first time buyer credit at closing:

Under the guidance, 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.

The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

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: Robert Freedman, REALTOR® Magazine Online

As mentioned yesterday, rates have climbed in the last couple of weeks.  Bankrate.com is quoting 5.35% on a 30 year fixed mortgage.

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