FHA Home Loans – Short Term Bridge Loan For $8000 Home Purchase Tax Credit

First Time Home Buyer Family With FHA Home Loan

FHA Home Loans will soon be that much better for first time home buyers as HUD and FHA plan to initiate short term bridge loans to allow first time buyers to take early advantage of their $8000 home purchase tax credit that the Obama administration authorized with the American Recovery and Reinvestment Act of 2009.

Program details of the FHA home purchase short term loan have not been completely rolled out, but the short term financing program will likely be tied to the deed of the property being purchased and the home buyer’s housing tax credit that they will be eligible for when they tile their 2009 tax return in 2010.

The American Recovery and Reinvestment Act of 2009 provides for a home purchase tax credit for first time home buyers who purchase a home in 2009 between January 1, 2009 and November 30, 2009. First time buyers must meet other qualifications to take advantage of the full $8000 tax credit. Details of the home purchase tax credit plan can be read at GetPreQualified.com in this article: $8000 Tax Credit For Buying Your First Home.

According to HUD and FHA, first time home buyers are those buyers who have not had an ownership in a home in the past 3 years. This applies to a single home buyer as well as a married couple where neither spouse was a home owner from a prior marriage.