Panama City Florida Mortgage Information – Reversal of HUD’s $8,000 tax credit announcement

Posted on May 20, 2009
Filed Under First time Florida home buyers, Florida Mortgage Update | 3 Comments

As you may or may not know HUD (Housing and Urban Development) 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 the 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.

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Author : Jennifer Mackay - Posts:232

Jennifer Mackay is an award winning real estate agent and Keller Williams team leader in the Panama City Florida area. Her website: Panama City Real Estate provides guidance, information and free buying and purchasing features for registered visitors. Follow: @realtorjennifer | Facebook

Comments

3 Responses to “Panama City Florida Mortgage Information – Reversal of HUD’s $8,000 tax credit announcement”

  1. Mike in Dallas on May 20th, 2009 1:53 pm

    Dang, i think this would have been a good thing. I dont mind 100% loans as long as the people have the credit to qualify

  2. Cal Carter @ Gulf Shores Condos on May 22nd, 2009 12:47 pm

    Go figure! Government policy is what created many of the problems we have now anyway. Sound lending practices would have prevented overbuilding, HELOC nightmares, and many upside down mortgages. The borrower should always have something at risk, not just the lender. Oh what a mess they created in trying to make everyone equal. Instead of the intended consequence, we end up with the poor being poorer, the rich richer, and the middle class picking up the bill for poor decision making across the spectrum. Monetary policy and tax code should not be used to engineer the ideals of society on a whim. It leads to bubbles, corruption, looting, and economic disaster. There will be no over night fix for the whole that we have dug for ourselves. Unfortunately, those that were not “digging” are in the hole too.

  3. Jennifer Mackay on June 2nd, 2009 5:58 am

    Sorry guys – You were both in my spam box but I’ve released you both.

    Thanks for stopping by and offering your insights.

    There is a reversal of this policy supposedly due out this month.

    We’ll see what happens and of course I’ll keep everyone informed.

    Best wishes

    Jennifer

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