Coming soon (or Maybe!) – Eligible FHA Buyers May Obtain the Economic Stimulus Tax Credit at Closing and Apply It to Their Down Payment?

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Mortgage and Lending with Karen Pierce | Mortgage Loan Originator NMLS#223305 |360 Mortgage Group LLC NMLS #155922 Austin Texas NMLS 223305

That's right, you read that correctly! Secretary Donovan of the U.S. Department of H.U.D. announced that the Federal Housing Administration is going to allow lenders to do a form of "bridge loan" for the up to $8,000 tax credit so that FHA buyers may use these funds toward their down payment instead of waiting until they file their income tax return to get a refund.

The National Association of Realtors® is having their midyear legislative meetings and trade expo in Washington, D.C., "The Real Estate Summit - Advancing the U.S. Economy". Our Oregon Association of Realtors® President Elect, Krista Bolf of Coldwell Banker Prowest in Ashland, is attending this event with several of her colleagues. I can't wait to hear what else is coming out of this summit!

Where having the up to $8,000 tax credit funded at closing may not be as critical for a buyer who has chosen the USDA Guaranteed Rural Housing loan, it can sure make a world of difference for the FHA buyer trying to meet the 3.5% minimum down payment requirement!

Stay tuned to find out when this funding will be made available.

 

5/14 Update - HUD Secretary Donovan had to do some quick back-peddling, and the announcement HUD published about approving the upfront funding by FHA lenders of the $8000 tax credit was removed! Maybe we'll see it again...

Oregon Bond Loan,first time home buyers,usda,fha,Karen Cooper,Quality4Loans,Ashland/Medford Oregon 

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

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Karen Cooper Southern Oregon|California Mortgage ConsultantKaren Pierce - Mortgage Loan Originator

               NMLS #223305

AL, AZ, CA, FL, GA, IN, IA, KY, MD, OR, TN, TX, VA, WA, WI

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Rainer
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Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

This is a huge development that could make a difference for first-time buyers on a shoestring budget.

May 14, 2009 01:34 AM #1
Rainmaker
334,338
Karen Cooper
Karen Pierce | Mortgage Loan Originator NMLS#223305 |360 Mortgage Group LLC NMLS #155922 Austin Texas - Austin, TX
Professional Mortgage Specialist

Hi Tom - I agree! I've been working with first time home buyers that have been able to get gift funds to use for their down payments, and buyers that chose the USDA Guaranteed rural housing program when they did not have down payment funds saved. This will open up Medford and Central Points, the two largest cities in our area, to the buyers who could not use the USDA program because they want to live in town. Are you going to have any programs available for first time home buyers in your area from the Neighborhood Stabilization Program?

Thanks for stopping by.

May 14, 2009 03:12 AM #2
Rainmaker
178,794
Heather Fitzgerald
REALTY WORLD-Harbert Company, Inc. - Greenwood, IN
REALTOR Greenwood Indiana Real Estate

Sounds like they took this one back within a day of announcing it.

May 15, 2009 03:12 PM #3
Rainmaker
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Karen Cooper
Karen Pierce | Mortgage Loan Originator NMLS#223305 |360 Mortgage Group LLC NMLS #155922 Austin Texas - Austin, TX
Professional Mortgage Specialist

Hi Heather - Yes, major back pedaling took place on this already. What egg on the face this is for the HUD secretary! Thanks for stopping by.

May 16, 2009 02:11 AM #4
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Rainmaker
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Karen Cooper

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