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Showing posts from May 31, 2009

THE NUTS & BOLTS OF USING THE FIRST TIME HOME BUYERS TAX CREDIT AT CLOSING

FHA (finally) Reveals the Details U.S. Secretary of Housing and Urban Development Shaun Donovan made headlines two weeks ago when he first announced that the FHA would allow first time home buyers to apply their $8,000 tax credits immediately, at their closings (The credit would otherwise be claimed when the buyer files his or her Federal Income Tax return). Last Friday, FHA released mortgage letter 2009-15 which sets out the rules to implement this new policy. Welcome the latest form of secondary mortgage financing - the Tax Credit Advance Loan . A big hat tip to Peter Olson's CCRE for alerting us all to the FHA's announcement. The concept seems pretty straight forward. Buyers are going to offered the opportunity to take a second loan at the closing that roughly equates to the amount of their tax credit. The loan will be repaid or forgiven over time as would the tax credit as originally formulated. WHY CHICAGO AREA BUYERS WANT TO USE THE CREDIT AT CLOSING This might be help