FALSE Info Flying Around About First Time Tax Credit as Down Payment

Ken, have you seen this?

http://memphisdailynews.com/editorial/Article.aspx?id=42421

Is this the first instance you've seen of someone actually putting this program into action?

Ken... I am posting your link in several blogs and will be writing about this later. But I am getting sick and scared of a few featured blogs by realtors that are just piggy backing off the NAR or each others, as realtors... and putting misinformation out there. Even if not intentional, it's misinformation.  Just because NAR backed it, without specifics, and doesn't explain it correctly, is misinformation. I am seeing too many comments acting like this is better than sliced bread. thanks for writing about this, I was just too tired to write about it.

I had to read it a couple of times myself.  The reports I was reading weren't very clear, but it makes more sense.

The point of this post is absolutely correct.  If you are in Missouri, the MHDC already has a tax credit loan advance program.  The only thing that this does in Missouri is to allow other FHA lenders and FHA NFP to make the same bridge or advance loans as permitted under the existing MHDC loan program.  It expands the concept to other FHA lenders who don't participate in the MHDC loan program.  There is no Treasury check at closing. 

An advancement on a tax credit. Sounds like just as much work as filing paperwork to me.

Why dont we just file an amended tax return on 2008, and wait for the check to come?

For people who count on this money as a down payment, perhaps should rethink their timing to purchase?

Dont hit me.

This is the information I was curious about - the bridge loan and how that would work.  Thanks for clarifying. 

Ken... first off, thank you very much for the polite mention. Hell, I want to know how you framed that and stuck it in your blog. But I also wanted to thank you to be one of the first to get this message out last night. I tried mustering this up yesterday afternoon, but I was busy, then tired later last night... and a tad lazy.  ;o)  But thanks for leading the charge, telling people that not every way could be used for the downpayment.

Ken, you and Jeff are a breath of fresh air in this murky smog-laden financial cloud we are searching through, I have been wondering about the sources of some of the stuff I have been seeing lately, thanks for clarifying they are not reliable as I suspected, some just want a headline to post to generate traffic it seems.

Thank goodness for Active Rain and the smart people on here like you and Jeff to keep us up to date. I was in a meeting today were they were telling us that these funds could be used as a downpayment. There are a lot of confused people out there right now.

This just out from NAR:

http://www.realtor.org/RMODaily.nsf/pages/News2009051801?OpenDocument&LID=RONav0019

Hopefully it's believeable...

I found this through a link that Matt Stigliano posted.

Thank you for putting this down for the world to see. I am so tired of having the same conversation with clients about this subject. Why don't people understand that it is a "Tax Credit" and not a "Down payment assistance program?"

I bet the a lot of folks have been sucked in by this one.

New news out from NAR:

http://budurl.com/s4vy

They did put a ne mortgagee letter up on the HUD site today (09-16), but 09-15 is still missing. Hopefully they'll put up the new one soon.

Pat & Wayne... your comment even sounds misleading.  Your comment would leave me to believe that there is a solution now, or that HUD put a mortgagee letter up stating that the down payment can be used with the tax credit and or from other lenders through bridge loans.  The news from NAR says that HUD is working on something... in alll honesty, who cares, until there is a ML letter that states that this can take place. Secondly, so many are you don't understand. EVen if HUD comes out with this letter, that you won't have lenders jumping up and down, to supply the bridge loan. Which means it will have to come from the other sources. And the state sources?  There are many requirements, such as income restrictions, that will keep more people from using these programs.

Here are the two new mortgagee letters..

09-ML-17 Accuracy of Lender Data for FHA Approved Mortgagees

09-ML-16 Manufactured Housing Policy Guidance – Property and Underwriting Eligibility

Sorry Jeff, didn't mean to mislead anybody, just thought someone might be interested in what NAR/HUD had to say. I should have been clearer. I'll think twice before posting anything again.

Pat or Wayne... sorry if it came across harsh, but by reading what you wrote and leaving a link, it almost sounded like HUD came out with a new ML letterabout the whole down payment/tax credit issue. Besides, I hate to assume and read into things... but let's break it down.

HUD puts a mortgagee letter out there about using a bridge loan to get monies as a down payment to take the place of the tax credit.  Now you have an article dated the 21st that says this...

{"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® magazine Wednesday afternoon.}

Being finalized?  Sorry, but what the hell was put out on the 12th then and then rescinded?  And what else could they possibly change in the new mortgage letter?  Ah, the typical gov't. Come on....  it's been 10 days now and still nothing. Sure, I bet they get something out there, but what the hell. 85% of that mortgagee letter is allowed by FHA anyhow...  so seriously, let's think about this. Why is it 10 days??? to add what?  And to actually put something out there and then decide to take it down?  All of this just doesn't make sense and you have people out there still writing about this, that HUD put a letter out there, that this can be done. What a mess...  thanks