Last week the secretary of HUD announced that you would be able to use your $8000 tax credit toward your down payment on an FHA loan., but then decided to hold off on the ability to do so. You can read the original mortgagee letter here. But for now, the program has been put on hold

With the stress test over, it appears that there will be another round of bailouts for banks, and also parties involved in short sales. The Obama administration is working on a standardized short sale program which will pay sellers, buyers, servicers and second lien holders. This program is intended to be around until 2012.

So far as a nation we have spent 2.6 trillion dollars on bailouts. There doesnt appear to be a light at the end of the tunnel just yet. It’s expected that the US intends to spend 10.5 trillion before the dust settles.

The 30 year fixed rates in California have been under 5% for the last five weeks. Now is a great time to take advantage of these all time low rates