Thursday, June 4th, 2009Monetization of the $8000 first-time home buyer tax credit found in the American Recovery and Reinvestment Act of 2009 is a hot topic these days. The FHA we’ve learned has issued a mortgagee letter (2009-15) regarding monetization of the credit. Roxanne Campanella a Senior Customer Liaison working out of the Sacramento HUD office talked about some of the difficulties in monetizing the tax credit as well as some of the incentives for doing so. She reiterated that regardless of whether the credit is monetized and used in the purchase transaction FHA rules still require a 3.5% down payment and the monetized tax credit could be layered on top of but not be used instead of the 3.5% down payment.
Continue reading: ARRA tax credit monetization and neighborhood stabilization programs
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