Miami Real Estate Investment

Some details of the FHA plan:

• FHA now allows its lenders to provide a short-term bridge loan to qualified home
  buyers for the purpose of accessing the federal $8,000 tax credit at the
  closing table. While the loan cannot be used to cover the minimum, FHA-required
  down payment of 3.5 percent, it will allow home buyers to use the federal
  tax credit in one of three ways:
• Home buyers can use the $8,000 tax credit to make a bigger down payment over
  the FHA-required 3.5 percent; they can also use the tax credit to cover closing
  costs; or home buyers can use the $8,000 tax credit to buy down their
  interest rate.
• Qualified home buyers applying for FHA-backed financing with an FHA-approved
  lender that offers a bridge-loan program can use that loan to bring down
  the immediate costs of buying a home significantly; however, they would
  still have to come up with the minimum 3.5 percent down payment – which
  is the buyer’s personal stake in their Florida dream home.
• Other resources are available for buyers who need help with the 3.5 percent down
  payment, including the Florida Housing Finance Corporation, many local
  government agencies and nonprofit lenders.
• In addition, Florida has approved $30.1 million for its new Florida Home buyer
  Opportunity Program, which will help first-time home buyers with down
  payment assistance through its own tax credit bridge loan program, once
  it’s established. County housing administrators will operate the program
  under the authority of the Florida Housing Finance Corporation. The Florida
  program is separate from what the U.S. Department of Housing and Urban
  Development offers through the FHA program.

More About the FHA Program

Did You Know?

The federal home buyer tax credit is expected to stimulate over 160,000 home sales
across the U.S. – of that number, 101,000 will be first-time buyers who
will receive the credit, according to estimates by the National Association
of Home Builders. An additional 59,000 existing homeowners will be able
to buy another home because a first-time buyer purchased their residence.
Given FHA’s current market share, it’s estimated that thousands of families
will be able to purchase a home by using the anticipated tax credit for
their purchase, along with an FHA-insured mortgage.

Consider the Source.

Miami Home buyers should beware of mortgage scams and carefully compare benefits and
costs when seeking out tax credit bridge loan programs. Programs will vary
depending on the organization offering the services. Borrowers should consider
which program make sense for them, as well as what company offers the most
suitable and affordable option.

Keeping Track.

For every FHA borrower helped through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA officials say they will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

NOTE: This document is for informational purposes and to help Miami real estate buyers and should not be construed as tax or legal advice.
For specific advice on their own tax situation, consumers should always consult a qualified tax professional.
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