Jeremy's Blog

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NEW HUD Mortgagee Letter 2009-15

What Happened?????

You may have heard that HUD published Mortgagee Letter 2009-15, Using First-Time Homebuyers Tax Credits for the Down payment. To outline what this letter said:

In Section II, FHA Guidance, HUD permits the following:

The Tax Credit: Short-Term Loan:

Entities that can offer the tax credit advance with short-term loans: Federal, state, and local governmental agencies and nonprofit instrumentalities of government, FHA-approved nonprofits, and FHA-approved mortgagees may provide short term or “bridge loans” secured only by the anticipated tax credit due the homebuyer as collateral.

Well that all sounds great right? Of course and I have received many calls asking about it, but there is a catch . . . .

The Mortgagee Letter making this changes has vanished from HUDS website as they have rescinded the change. What does that mean? It means it never happened, doesn't exists, we cant do it!

I mention this because NAR even sent out an email talking about the change. The bottom-line is that until further notice this is not an acceptable source for down payment in HUDS eyes. I will say that the change is more than likely coming and I will let you know when it happens.

Call me with questions!

(269) 598-3975