Thanks for the speedy response, it is my understanding that – as in Virginia – this will be through FHA approved entities and non-profits only. The Mortgagee letter – on second, third, fourth, and fifth readings, seems to be somewhat confusing.

I’ve punted to my favorite lender to “get hot so I can too.”

Navy Chief, Navy Pride

If you click on the link in that blog post you will see that the infomration in my blog post pertain to the HUD article as published on the day I created that content.

I posted a follow-up article on my blog yesterday outlining a program in my state (through the Virginia Housing Develpment Authority) that uses what you described to allow homeowners to obtain a second trust with 12 months deferred interest that allows buyers who meet VHDA guidelines to reduced if not eliminate out of pocket cost to purchase their first home.

Joe- I have no idea, you’ll have to ask Matt in comments on his blog.

Just noted that your link to Matt’s Real Estate Corner, but I’m not sure I’m getting this straight. I thought you COULD use the tax credit towards your 3.5% downpayment? I quote Donovan’s press release from Matt’s own link:

“Today’s announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to “monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments”

Am I just reading it wrong? I read briefly through HUD Mortgagee 2009-15 and thought it said the same thing.

Navy Chief, Navy Pride

Keeping up on the latest and greatest in RE is quite a task, but it is made easier when kind souls such as yourself take the time to aggregate some pertinent articles/pages. Thanks again, you capped off my already so-far-so-good day. Have a great Tuesday night…we’re back at it bright and early tomorrow for another exciting day in RE!!

@smith_goomzee