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Tax Credit Guidance for FHA Loans
6/1/2009
Good morning,
The details of the program were announced Friday in Mortgagee Letter 2009-15. Government entities and instrumentalities of government may provide a second mortgage. The 3.5 percent down payment may also be a gift from a family member, employer or nonprofit, charitable organization.
The original guidance permitted lenders and HUD-approved nonprofits and lenders to offer bridge loans via second lien financing or short term loans. Guidance released today allows lenders to offer the monetized tax credit for down payments in excess of 3.5 percent, closing costs and interest rate buy downs.
Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers. Lenders will need some time to develop documentation for what will effectively be personal loans to the home buyer.
Click here to read the HUD Mortgagee letter. |
