DOWN PAYMENTS FOR 1ST TIME HOMEBUYERS

On Tuesday, The Department of Housing and Urban Development's Federal Housing Administration said it will allow first-time homebuyers to use the federal tax credit of up to $8,000 for a downpayment at closing. FHA will allow approved lenders and nonprofits, and state and local government agencies to issue short-term bridge loans buyers can use for down payments. Buyers would repay the loans after getting their tax refunds. This could be good news for first time home buyers, which are slated to account for 53% of home purchases in 2009 - but unfortunately, there isn't much we can do until the details of the program are fully released, and in turn accepted by lenders