Received this heads up from Mark Madsen and felt it should be reiterated here.
Folks – hear this.
The use of the First-time Homebuyer Tax Credit for your FHA mortgage downpayment is NOT yet an option. Just wanted everyone to be clear, as there has been a lot of discussion about this topic.
Those statements were made by the US Department of Housing and Urban Development secretary Shaun Donovan yesterday and a HUD/FHA letter was published on the website Monday night. BUT……..the new DIRECTOR of HUD pulled that Mortgagee letter this morning and is no longer even available on the HUD website. (Woops!)
Here is the link to all Mortgagee Letters:
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/ Notice ML 09-15 has been pulled!
This theoretical program is now off the table…….and should NOT be used until there is a real concept of how to offer to your borrowers with real answers as to where the money might come from.
IF you have any questions, don’t hesitate to call me. Should anything come to market officially – I’ll let you know.
Before the use of the $8,000 First-Time Homebyer Tax Credit for your FHA downpayment happens, there will need to be:
- State agencies approved WITH MONEY for the down payment
- A Change to the HUD guidelines on the time frame that is allowable for a loan….currently must be amortized over 10 years with no balloon.
- A change to the IRS guidelines allowing your refund to be assigned to a state or non-profit entity.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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