Special Update:
New guidelines were issued today for the monetizing of the $8,000 first-time homebuyer tax credit that was announced by HUD and then delayed by HUD. The primary change is that the money cannot be applied toward the 3.5% down payment. It can be used for a larger down payment or applied toward closing costs. We'll provide more details soon.
Here's a link to the HUD site. Click on Mortgage Letter 09-15 http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm
Again, it appears that it can be used as "a" downpayment, but the borrower still needs to come to the table with 3.5% on FHA loans.
Larry Morris is a Certified Mortgage Planning Specialist in Portland, Oregon. He specializes in USDA Guaranteed Rural Home Loans, FHA Purchase and Refinance, FHA 203k Rehab loans, FannieMae HomePath loans, Oregon VA Loans and conforming purchase and refinances in the states of Oregon, Washington and Idaho.
He can be reached at 503-421-0096.
Hi Larry,
Boy they keep changing their minds! First it can, then it can't..sounds like some indecision going on!
I think this will get a lot of first time home buyers off the fence but even though my specialist is FTHB Im still not positive that it's the best idea.
Dorie and Heather - thanks for your comments. I believe the issue has been more to do with the IRS and how you calculate a credit that is based on future income. I also like the fact that the borrower still has to come to the table with a 3.5% downpayment on the FHA loans. It protects the lender since the borrower still has a vested interest in making their payment. Since it can be used for the closing costs, it's a good thing. This will help protect the Seller's price and hopefully keep us from seeing so many homes that don't make value due to Seller Concessions.
This is grear information I think they just want to make sure people can have some of their own money coming in
Thanks for the information - I reblogged it.