Tax Credit Guidance for FHA Loans Announced by HUD

**ITS IMPORTANT TO NOTE THAT LENDERS WILL NEED TIME TO FIGURE OUT THE DETAILS BEFORE THIS DECISION IS PUT INTO PRACTICE. CONTACT ME FOR DETAILS- THERE HAS NEVER BEEN A BETTER TIME TO BUY A HOME!**


In his speech at the National Association of REALTORS® Housing Summit on May 12, 2009, US Department of Housing and Urban Development (HUD) Secretary Shaun Donovan announced a program that allows borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on a FHA-insured mortgage. The Secretary said “We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit.”

The details of the program were announced today in Mortgagee Letter 2009-15. A government entity and instrumentalities of government may provide a second mortgage. Currently, 10 state housing finance agencies offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. These states are Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, and Tennessee. State Associations are encouraged to work with their respective housing finance agency to implement similar programs. 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.

Read the HUD Mortgagee Letter

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Balanced Solutions to Workforce Housing

The Triangle Community Coalition recently hosted a forum on Affordable Housing for the Triangle’s Workforce. The luncheon was held on May 19. The program, “Balanced Solutions for Workforce Housing”, explored creative and functional affordable housing solutions for the Triangle’s workforce, particularly during the economic downturn.

Featured Speakers included ... and Zach Schabot, a broker with Garman Realty and member of the City of Raleigh's Fair Housing Hearing Board."

-Speaker Bios

-Podcast (audio)

One for One.

I am so often inspired by other people. The story of TOMS shoes is definitely an inspriring one. I have no real connection to this company, other than an absolute belief in giving back. At Garman Realty, we believe in giving back too. It is one of the core values of our company.

Our tagline is "Give it Back." Their tagline is "One for One." Welcome to the revolution.