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Not so fast, wait for the official announcement

We all know how fast information can speed around the Internet. Read about something in more than a few places and it seems credible. Yesterday, I posted that FHA would allow the $8000 first time homebuyer tax credit to be used as a down payment. It was announced by the Secretary of Housing and Urban Development, Shaun Donovan at the National Association of Realtors mid year legislative summit.

I indicated that the official announcement and details would be announced by HUD next week and linked to one of many websites offering additional information.

In fact, it was very credible ... yesterday.

Fast forward to today. 

HUD had the speech on their website yesterday. It has been removed today.

The NAR announced it on their website. It is still there.

Many real estate bloggers are probably writing something similar to this post advising interested first time homebuyers that the official announcement and details have not been formally announced by HUD yet. 

It seems that a lot of contradictory information is currently blazing around the Internet that questions whether the FHA will in fact allow the tax credit to be used as a down payment and if so, how it would be handled by the mortgage lenders.

So it may or may not happen. Stay tuned.   Confused

Published Friday, May 15, 2009 2:06 PM by Howard Arnoff

Comments

# re: Not so fast, wait for the official announcement

Maybe FHA realizes it may not be a good idea to lend someone 200k+ when he/she can't even save 8000. :P

However, FHA will do it anyway.

Friday, May 15, 2009 2:44 PM by Jimmy

# re: Not so fast, wait for the official announcement

Jimmy, you make a very good point and that is one of the reasons that third party non-profits such as Ameridream who provided down payment assistance were banned last year (in that situation, the price of the home was increased in the contract and the seller gave the extra money to the non-profit who took a slice and then gave the balance to the buyer). Actually, it doesn't sound so non-profit to me but ...

Anyway, here I think it's a situation of the government trying their best to boost demand to help stabilize the housing market. But as I cautioned in the original post, all buyers should have some cash reserves before considering buying a home, but it would help those who couldn't quite get to 3.5%.

Friday, May 15, 2009 3:00 PM by Howard Arnoff
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