Is An FHA Short Term Loan Beneficial?

The FHA bridge loan is not something that you hear a lot about, but that is because when it first came out it wasn’t being talked about by FHA. FHA wanted to keep this one under their hat until the bridge loan was perfected, and the plan they came up with is fine, but is it really a good idea?



I think it depends on the person or family. As with anything in life, it’s all about being responsible, and for those who are irresponsible and don’t save, it may be a bad idea. The short term bridge loan with FHA was designed for those who didn’t have the down payment money for their new purchase. Then, once filing with the IRS, you would know what you are getting back, but it won’t go against your tax credit. So, making sure that you will have the money later is a key factor. Generally speaking, if someone is pretty responsible then changes are they will have the funds to use for a down payment on the home, but if not then the short term bridge loan can be effective.



As with anything, educate yourself and don’t do it just because someone else did or suggested it. When you hear about the FHA short term bridge loan, do some research and look it up for yourself, but what you really need is an expert. For more information, go to www.fhaloansnow.net, and talk to your FHA expert today.



-Mayer Dallal