June 12th, 2009
FHA And The $8k Tax Credit
HUD had been mullingover whether or not the $8,000 first time homebuyer Federal Tax Credit would be allowed to be used as part of the down payment when buying a home, as well as consideration towards closing costs.
We were hoping this would be more beneficial, but something is better than nothing….Right?
The FHA/HUD recently released Mortgagee Letter 2009-15 that says:
- The credit may be applied to closing costs only (the 3.5% down payment is still required)
- IRS may deduct from the tax credit: (unpaid student loans, tax liens, etc)
- Other restrictions apply.
Posted by scott on June 12th, 2009 in Feedblitz, Lending | 1 Comment »
June 13th, 2009 at 11:37 am
from what I am hearing now there are a lot of lenders who wont do this. Too many risks involved. So from what I understand it is ‘doable’ through FHA but you have to find a lender who will do it and lenders aren’t very willing to cooperate.