{"id":8412,"date":"2009-05-13T14:36:00","date_gmt":"2009-05-13T21:36:00","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=8412"},"modified":"2009-05-13T14:01:33","modified_gmt":"2009-05-13T21:01:33","slug":"fha-and-the-8000-tax-credit-what-i-know-and-what-i-dont","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8412\/fha-and-the-8000-tax-credit-what-i-know-and-what-i-dont\/","title":{"rendered":"FHA and the $8000 Tax Credit &#8211; what I know and what I don&#8217;t&#8230;."},"content":{"rendered":"<p>It has amazed me how many people (mainly Realtors and lenders) are already out there proclaiming that you can now go back to the days of the &#8220;No money down&#8221; loans with FHA and you can do it right now.&nbsp;&nbsp; Well, that&#8217;s not quite the whole story.&nbsp;&nbsp;&nbsp; Let me explain:<\/p>\n<p><b>What I know:<br \/><\/b><\/p>\n<ul>\n<li>I know that FHA is now allowing a borrower who qualifies for the $8000 tax credit to use that tax credit as the downpayment for purchasing the house.<\/li>\n<li>I know that they can&#8217;t get any cash back &#8211; if they need $7000, they can only get $7000.<\/li>\n<li>Government agencies and non-profits can do second liens against the house for the downpayment.<\/li>\n<li>The payments on that second lien need to be counted into qualifying rations.&nbsp;&nbsp; In other words, if you are going to borrow the $8000 so you can use it for your down payment, you need to be able to pay that amount back.&nbsp; Gee, there&#8217;s a novel concept.<\/li>\n<li>FHA approved mortgagees can do a &#8220;bridge loan&#8221; against the tax credit.<\/li>\n<\/ul>\n<p><b>What I don&#8217;t know:<br \/><\/b><\/p>\n<ul>\n<li>I don&#8217;t know whether any FHA approved non-profits are going to be willing to do second liens in situations like that.<\/li>\n<li>I don&#8217;t know whether any FHA mortgagees (such as my bank) are going to be willing to do a bridge loan against a tax credit. &nbsp; Typically banks don&#8217;t like to do unsecured loans and I&#8217;m not sure how you can secure a loan against a tax credit.<\/li>\n<li>I don&#8217;t know what fees and rates will be charged for such a bridge loan.<\/li>\n<\/ul>\n<p>Personal feelings:<\/p>\n<ul>\n<li>In today&#8217;s volatile market, if you aren&#8217;t able to come up with 3.5% for a downpayment on a house, maybe you should continue to rent for a while.<\/li>\n<li>The &#8220;tightest&#8221; 12 to 18 months that a home buyer typically has is their first 12 to 18 months when they are getting used to the house payment. &nbsp; Do we really want to add the cost of having to pay back a bridge loan on top of that?&nbsp;<\/li>\n<\/ul>\n<p>So I guess my recommendation is essentially this:<\/p>\n<ul>\n<li>Take a deep breath.<\/li>\n<li>Wait to give the financial institutions the time to sort this all out.<\/li>\n<li>Once we <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8412\/fha-and-the-8000-tax-credit-what-i-know-and-what-i-dont\/#more-8412\" class=\"more-link\">Read more<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>It has amazed me how many people (mainly Realtors and lenders) are already out there proclaiming that you can now go back to the days of the &#8220;No money down&#8221; loans with FHA and you can do it right now.&nbsp;&nbsp; Well, that&#8217;s not quite the whole story.&nbsp;&nbsp;&nbsp; Let me explain: What I know: I know [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[62,29,26],"tags":[355,354],"class_list":{"0":"post-8412","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-dirty-laundry","7":"category-group-therapy","8":"category-lending","9":"tag-8000-tax-credit","10":"tag-fha","12":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":7402,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7402\/if-i-never-make-a-single-payment-on-my-super-cheap-fha-loan-do-i-still-get-my-8000-tax-credit\/","url_meta":{"origin":8412,"position":0},"title":"&#8220;If I never make a single payment on my super-cheap FHA loan, do I still get my $8,000 tax credit?&#8221;","author":"Greg Swann","date":"March 8, 2009","format":false,"excerpt":"WAPO:The last time the housing market was this bad, Congress set up the Federal Housing Administration to insure Depression-era mortgages that lenders wouldn't otherwise make. This decade's housing boom rendered the agency irrelevant. Americans raced to aggressive lenders, seduced by easy credit and loans with no upfront costs. But the\u2026","rel":"","context":"In &quot;Big Mother&quot;","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9901,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9901\/do-today%e2%80%99s-home-prices-reflect-their-market-value\/","url_meta":{"origin":8412,"position":1},"title":"Do Today\u2019s home prices reflect their market value?","author":"Al Lorenz","date":"September 29, 2009","format":false,"excerpt":"Can you really look at a buyer today and tell them that they are buying their home at a good price?\u00a0 Sure, you can tell them how the price they are paying compares to what folks have been paying the last few months, or few years.\u00a0 But that doesn't mean\u2026","rel":"","context":"In &quot;Dirty Laundry&quot;","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10081,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10081\/pent-up-demand-seen-in-purchase-ready-renters\/","url_meta":{"origin":8412,"position":2},"title":"Some Updates from the Marble Tower","author":"Dave Phillips","date":"October 14, 2009","format":false,"excerpt":"Here are a few pieces of kibble from NAR that I thought the Pound might want to chew on... \u00a0 Pent-up Demand Seen in Purchase-Ready Renters There are more than 16 million renter households in the U.S. with enough income to buy a home at the national median price, far\u2026","rel":"","context":"In &quot;Big Mother&quot;","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/activerain.com\/image_store\/uploads\/7\/5\/9\/6\/8\/ar124076527886957.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4128,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4128\/racing-the-clock-on-dpa-programs-will-the-dems-save-the-day\/","url_meta":{"origin":8412,"position":3},"title":"Racing the Clock on DPA Programs:  Will The Dems Save the Day?","author":"Brian Brady","date":"August 27, 2008","format":false,"excerpt":"I had some fun, yesterday, with a report about the down payment assistance ban and the First-Time Homebuyer Tax Credit.\u00a0 I poked fun at the hypocritical nature of the Down Payment Assistance Programs and speculated that the Tax Credit might be collateral for a \"tax refund loan\", thereby, facilitating the\u2026","rel":"","context":"In &quot;Real Estate&quot;","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4812,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4812\/other-types-of-credit-may-be-feeling-the-crunch-but-home-mortgages-are-still-readily-available\/","url_meta":{"origin":8412,"position":4},"title":"Other types of credit may be feeling the crunch, but home mortgages are still readily available","author":"Greg Swann","date":"October 4, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Other types of credit may be feeling the crunch, but home mortgages are still readily available Bad news about the economy is coming in from all directions, so you may be in the mood for some good\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7404,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7404\/why-fha-loans-wont-be-getting-cheaper-or-easier\/","url_meta":{"origin":8412,"position":5},"title":"Why FHA Loans won&#8217;t be getting cheaper or easier&#8230;..","author":"Tom Vanderwell","date":"March 9, 2009","format":false,"excerpt":"When the subprime market imploded and people starting rushing to FHA, the \"chant\" was that FHA is the new \"subprime.\"\u00a0\u00a0 FHA originations skyrocketed and anyone who didn't have a 700 credit score and a downpayment of 5 to 10% was quickly led into FHA.\u00a0\u00a0 I remember reading statistics of different\u2026","rel":"","context":"In &quot;Lending&quot;","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=8412"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8412\/revisions"}],"predecessor-version":[{"id":8413,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8412\/revisions\/8413"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=8412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=8412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=8412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}