Comments on: 8000 Tax Credit Bridge Loan For Down Payment Assistance: A Possibility?

By: Michael Smith

Michael Smith — Mon, 29 Jun 2009 23:52:35 +0000

Wow Justin, thanks for all the info. Will keep an eye on this.

By: Justin McHood

Justin McHood — Tue, 02 Jun 2009 04:30:34 +0000

@Michelle,

Yep!

Here are a couple:

http://www.realphoenixliving.com/2009/05/31/8000-tax-credit-bridge-loan-for-down-payment-and-closing-costs-now-reality/

http://www.zillow.com/blog/mortgage/2009/06/01/fha-to-allow-new-home-buyer-tax-credit-to-be-monetized/

Justin

By: Michelle

Michelle — Tue, 02 Jun 2009 04:23:24 +0000

Any updates?

By: 8000 Tax Credit Bridge Loan For Down Payment and Closing Costs: Now Reality | Phoenix Area Real Estate Blog

Sun, 31 May 2009 20:52:58 +0000

[...] am happy to say that the two concerns I had about the program have both been addressed by HUD and I am now a fan of this plan. I think it is a good one. While it [...]

By: Brandon

Brandon — Tue, 19 May 2009 22:27:42 +0000

There’s another way to look at all this. If you can’t afford a down payment, you shouldn’t be buying a home. The notion of “home ownership for everyone” is mainly what led to the housing mess we are in right now. Jeez, how soon we forget. Does anybody else see where this is going? Slow the ride down, I want to get off. Nice blogging! Take care. ~Brandon

By: Justin McHood

Justin McHood — Tue, 19 May 2009 03:45:31 +0000

Deal.

Here is the latest — I feel like I have leaned and been slapped.

http://www.zillow.com/blog/mortgage/2009/05/18/8000-tax-credit-bridge-loan-lean-and-slap/

Justin

By: Dru Bloomfield

Dru Bloomfield — Tue, 19 May 2009 03:39:13 +0000

Justin,

I’ll be looking to you for more info as it comes in.

By: Justin McHood

Justin McHood — Mon, 18 May 2009 15:54:33 +0000

Hi Dru,

Sorry, I should have been more clear on that one.

Let me say first that to my knowledge, nothing is still official on this, so I could be giving bad information on this “bridge loan” that turns out to not even be real.

But — there isn’t really an interest rate per se — just a “fee” for providing the bridge loan which is backed by the federal government, so there really is no default risk.

Let’s say that someone decided they wanted to “monetize” their tax credit and participate in one of these bridge loan programs. For this example, let’s say they were buying a $100,000 house and needed $3,500 for their down payment.

To borrow that $3,500, they agree to pay $500.

The person who loaned the $3,500 gets the $3,500 back in 1 month and for loaning them the money, they receive $500.

So in this example, if you said that someone borrowing $3,500 and paying $500 to borrow it for one month — the interest rate would be even considerably higher than 100%.

But I used 100% to be conservative.

Let’s see how it all plays out. If it has become official, I am not yet aware of it — so who knows.

Justin

By: Dru Bloomfield

Dru Bloomfield — Mon, 18 May 2009 12:09:48 +0000

I’m not following on the 100% interest rate. How does that work?

By: Steve Belt

Steve Belt — Fri, 15 May 2009 17:21:37 +0000

Kyle, if the spending programs actually put people to work, I’ll start singing a more positive tune. Even though it means a significant sharing of wealth, at least the money would have some tangible benefit I would hope I can point to and say, “I built that”.

I’m not sure what “that” is, but for a few trillion dollars, we should be able to build some pretty cool stuff. You know…stuff like the Hoover Dam, Mount Rushmore, the Golden Gate Bridge…little things like that.