HUD Withdraws Offer/Statement on $8000 Tax Credit
May 14, 2009 by Marney Kirk
Filed under Baltimore, Blog, Timonium, Towson
On Tuesday I wrote about an exciting new program that HUD & FHA were rolling out to let the $8000 Tax Credit for First Time Homebuyers be used as a downpayment.
That has now been retracted, and the letter removed from the HUD site.
Yet Yesterday, HUD Secretary Donovan said that many states already were monetizing the tax credit, creating a so-called “Bridge Loan” where the money is loaned up front from the credit due down the line. This is, in essence, what the downpayment “credit” would come from. Here are more details from the National Association of Realtors conference where Donovan spoke.
Jeff Belonger, an FHA specialist ,wrote about it this morning, explaining the legal problems with the plan as proposed.
So not totally gone, but may not be available everywhere. OK, Maryland, are we going to be in? Can we get it done like Washington State has?
[...] May 14, 2009, please see my update that HUD has retracted its statement and that this may NOT be the case [...]
[...] The details coming from HUD & FHA have been very confusing, as I have written about before. [...]