Hilde's Mortgage Blog

The news of the potential use of the $8,000 as a bridge loan made head lines in the past couple days.

The bottom line is that a lot of details still need to be worked out. FHA needs to issue specific guidance in what they deem acceptable. It is not at all addressed yet whether those funds can take the place of the minimum 3.5% down payment requirement or if it can only be used for additional down payment.

Once those specifics are worked out it's on to the next step. Who will provide the interim loan. Yes, it will be an interim loan. In general borrowing money equates to an interest expense. We will need to find out what type of expense we are dealing with and how it will factor into the loan approval.

Lots of detail still in the works. Once we know more, I'll be sure to post it here. In the meantime feel free to contact me for all our home financing needs.