We just returned from a NEFAR meeting in which the VP of Public Policy for FAR (Florida Association of Realtors) announced that the premature announcement of last week is going to be a DONE DEAL within a few days.
"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told Realtor® Magazine Wednesday afternoon.
He told us that the White House got cold feet and started to backtrack but after regrouping they are going to go forward with the proposal to allow bridge loans against the stimulus check to be used for downpayment assist for first time buyers.
Agree with the program or not, if you qualify you might as well take advantage of it now. Couple it with the low interest rates and low home prices and you have great reasons to buy a home NOW!
Edit: Just found this supporting article - http://www.floridarealtors.org/NewsAndEvents/n6-052209.cfm
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Hmmm... now I'm totally confused as I just received the following message:
As you know HUD made an announcement on May 12 that they were going to allow homeowners to use the $8000 tax credit as down payment monies by empowering state agencies, non profits and HUD approved Mortgagees to lend the monies to home buyers. HUD drafted HUD Mortgagee Letter (2009-15), however, the letter was never officially released. HUD has since reversed their position on allowing the monetization of the tax credit over concerns that the proposal too closely resembles the now illegal practice of seller funded down payment assistance programs. IRS officials were also concerned that the proposal could create income tax issues.
The government may continue to seek other alternatives associated with boosting affordability and circumventing the 3.5% down payment requirement, but until further notice they have apparently killed this initiative.
Do our "leaders" have any clue what they are doing?