We have recently received several inquiries as to how a First Time Homebuyer might utilize the $8,000 Tax Credit at the time of loan closing on an FHA purchase transaction. At this time, HUD/FHA has not announced any instruction/direction regarding this issue. The Director of HUD did make the following comment in a speech yesterday (May 12th) at the National Association of Realtors (NAR) Real Estate Summit:“… we are taking action to further help the housing market recover. I'm excited to announce here at NAR that FHA's policy on the "monetization" of the first-time homebuyer tax credit will soon be published.”
“We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly.”
A full copy of his speech can be found at: http://www.hud.gov/news/speeches/2009-05-12.cfm
Several outside sources have taken this comment and promoted it as a “done deal”. We at Sunset have contacted HUD and they have confirmed that they are aware of the comment, but they have not yet received any direction from Washington on how this will all play out and as such they cannot offer any direction at this time.
This possiblity could be a great way to get first time home buyers limited on their downpayment into a home. Patience is necessary to see how this will work out.
I will keep my eyes and ears open for any news and updates, and keep you apprised of the situation.
Contact Me for any further information and be sure to check back often.
Thanks for reading.
Bryan
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