Tax Credit changes (mortgage, loan, broker)

[cfIfan]

Just some info to let you guys know if you dont already the changes made to the $8000 tax credit.

The major change is essentially that the 2009 first time home buyer tax credit may now be used to assist with down payment or closing costs.

I know most of you are all well informed about these things but i wanted to throw it out there for those of you who dont know.

[Broker Dave]

Closing cost only not downpayment at this time as the gov. still wants the buyer to have some skin in the deal.

I know Florida has passed an ammendment making the 8,000 available upfront as a no interest loan starting July 1st 2009 to first time buyers, they will then file their taxes to pay the loan off with the 8,000 tax credit. But it's still out as to whether or not the mortgage companies will allow this as they make their own rules.
Lets see that's 2 steps forward and 3 steps back.

[cfIfan]

You may want to check that as it appears this has changed. They still require the 3.5% down so that as you say the buyer has some skin in the deal, but they can use the tax credit to add more to their down payment if they so choose or to buy down the rate.

You can find the details for this in the US department of Housing and Urban Development letter dates May 29 reference mortgage 2009-15 from the Assistant Secretary Brian D. Montgomery.

Originally Posted by Broker Dave

Closing cost only not downpayment at this time as the gov. still wants the buyer to have some skin in the deal.

I know Florida has passed an ammendment making the 8,000 available upfront as a no interest loan starting July 1st 2009 to first time buyers, they will then file their taxes to pay the loan off with the 8,000 tax credit. But it's still out as to whether or not the mortgage companies will allow this as they make their own rules.
Lets see that's 2 steps forward and 3 steps back.

[AONE]

That also depends on the agency from which the loan comes. there are still sources for 102% financing.