Home > Blogs > Larry H Morris > Larry Morris's (larrym) Blog

Update on the $8,000 Tax Credit

By Larry H Morris

Mortgage and Lending with Mortgage Solutions Financial NMLS #150073

May 29, 2009 10:06 AM

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.

Re-Blog

Comments(5)

Comment

Show All Comments

Sort:

Dorie Dillard Austin TX

Coldwell Banker Realty ~ 512.750.6899 - Austin, TX

NW Austin ~ Canyon Creek and Spicewood/Balcones

Hi Larry,

Boy they keep changing their minds! First it can, then it can't..sounds like some indecision going on!

May 29, 2009 10:12 AM

Heather the Realtor Orlando, Lake Mary

LemonTree Realty - Orlando, FL

First Time Home Buyers, Bank Owned Homes

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.

May 29, 2009 10:29 AM

Larry H Morris

Mortgage Solutions Financial - Portland, OR

Larry Morris, NMLS 150073

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.

May 29, 2009 10:37 AM

Terri Onigkeit

Keller Williams of Northern Colorado - Fort Collins, CO

GRI

This is grear information I think they just want to make sure people can have some of their own money coming in

May 29, 2009 10:51 AM

Mike & Kathleen Kelly

Better Homes and Gardens Real Estate Foothills - Hickory, NC

Hickory NC REALTORS

Thanks for the information - I reblogged it.

May 29, 2009 11:20 AM

Comments(5)

Larry H Morris

Real Estate Resources