Timely news, information and advice concentrating on FHA, VA and USDA residential mortgage lending.

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2009 Tax Credit and FHA Loan Down Payments Update

FHA borrowers were told they could use the loan as a down payment on their homes, but legal issues prevent banks from issuing down payment assistance on FHA mortgages. Since the initial May announcement, the rules have been revised so that such bridge loans are used within federal guidelines.