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Buyers can tap tax credit for down payment

FHA drafting policy on first-time homebuyer credit

First-time homebuyers will soon be able to access their $8,000 federal tax credit when closing on a home through a short-term bridge loan that will cover their down payment on FHA-backed loans. The Federal Housing Administration will soon publish a policy that will allow FHA-approved lenders, HUD-approved nonprofits, and state and local housing finance agencies to "monetize" the tax credit through short-term bridge loans, Secretary of Housing Shaun Donovan said Tuesday. "We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan told members of the National Association of Realtors gathering for their midyear conference in Washington, D.C. "We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit." The Memphis Area H...

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