Columbus Ohio real estate

$8,000 First Time Homebuyer Tax Credit - Approved by FHA/HUD 5-29-09 - But buyer BEWARE !!!


Believe me if I knew of a local lender who was telling the story to buyers I'd be linking to them or Re-Blogging their content. 

I got back from an appointment to see this on ActiveRain. 

Nothing in my mailbox from local lenders but maybe they are spreading the word to buyers directly. 

This is from Jeff Belonger a lender in New Jersey.  

Buyer Beware you can NOT use the tax credit for downpayment.  Read Jeff's post:

EDIT Comments have been disabled by the author

comment on Jeff's blog!

Tax credit for first time homebuyers



BUYER BEWARE of Tax Credit


The first time homebuyers tax credit of $8,000 has been approved by HUD for all FHA loans. But don't get too excited too quickly. If you get a chance to read the mortgagee letter, ML 2009-15, it states that you can't use this tax credit for the required down payment of 3.5%.

HUD originally put out mortgagee letter 2009-15 on May 12th, but was rescinded the next day. Please read about that here : $8,000 tax credit rescinded by HUD. For some reason, it was prematurely placed on HUD's web site, but apparently wasn't finalized. Now we have a new version and if not read correctly, you could be putting misinformation out there. So what does the new mortgagee letter state?




Here is the positive part about the tax credit. You can receive the first time homebuyers tax credit upfront, but not through the IRS.  This would be illegal. Please read : It's illegal to receive your tax credit before you close on your homeBuyers - BEWARE, please read that, because too many people are saying that you can get the money directly from the IRS prior to closing. The IRS & HUD both say no!!!

So how can you receive this upfront?  It can be given to you as a second or a silent second from any Federal, State, or local agencies, and any FHA mortgagee or any FHA approved non-profit organization.  People, in layman's terms, this is already acceptable by HUD's standards, except for the lender that is now able to give the monies upfront in a form of a 2nd mortgage. Another terminology is that this can be an advance loan from any of the entities mentioned above.




Summary :  Essentially, this means that the entities mentioned above, are purchasing this tax credit on your behalf and giving it back to you. The short version of this is that you can use some of the money from the $8,000 Tax Credit as your down payment, but after you put down the first 3.5% of that down payment. Meaning, you have to come up with 3.5% of your own money still. With FHA loans, it can still be a gift from a relative/family member.  It also can come from non-profit or government agencies to be used as your initial down payment, but not used through the tax credit. Overall, the tax credit that is advanced, can be used for all closing costs. But you can't receive monies back at closing. 

And again, keeping in mind, it's illegal to receive this tax credit upfront directly from the IRS. There is more verbiage in the mortgagee letter 2009-15 , but the main point is that you have to have 3.5% of the downpayment yourself, before you can use the tax credit that would be 'loaned' to you.



THOUGHTS??? - Well, in all honesty, how does this truly help? What is the gov't thinking here? As a buyer, I would still need the initial 3.5% of my monies for the down payment. Again, needing money to buy. I know some of you are for this fact, that buyers should have skin in the game. But keep in mind, this was not the true demise to our foreclosure mess. We need to sell houses to keep this economy going.  Just my opinions and food for thought.  thanks



My Series on the First time homebuyers $8,000 tax credit - Everything you need to now, from start to finish - What's allowed and what's not allowed :




follow Jeff Belonger on Twitter



- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- Mortgages -


Experience & Knowledge at its BEST !!!



For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!

Copyright © 2009 by Jeff Belonger


This post provided by Maureen McCabe HER Realtors*

Contact Maureen McCabe of HER Realtors* - 614.388.8249

HER Realtors  Maureen McCabe

Search Columbus mls

email:  at = @

*Real Living HER

Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.



Comment balloon 2 commentsMaureen McCabe • May 29 2009 01:41PM
$8, 000 First Time Homebuyer Tax Credit - Approved by FHA/HUD 5-29-09..
Believe me if I knew of a local lender who was telling the story to buyers I'd be linking to them or Re-Blogging their content. I got back from an appointment to see this on ActiveRain. Nothing in my mailbox from local lenders… more
Real Living HER Open House List - Memorial Day Weekend
Happy Memorial Day Weekend! There are 64* properties for sale on the Real Living HER Open House list. Holiday Weekends are NOT big for open houses. Clintonville area - 1 home for sale is open Columbus - 10 homes ranging in price… more
Dublin's Riverside Green Neighborhood - Open House
Open Sunday 2 - 4 3248 Hawksbury Ct Open House presented by Maureen McCabe* Open House presented by Maureen McCabe* View Larger Map First time open house! New listing for sale in Riverside Green. This home is in the Riverside… more
Real Living HER Open Houses May 17, 2009
Edit Sunday "There are 269 Open Houses available. " The Real Living HER Open House List on my website says there are 217 Open Houses this week (now. ) That number is subject to change. * It's a Super Sunday Open House… more
First time buyer… like a virgin for the very first time
Are you a Central Ohio first time buyer? You may be even if you have owned a home previously. Not a big Madonna fan? Me either but when I read the chart about the First Time Home Buyer Tax Credit the song starts playing in my head. You know… more
Columbus First time buyers take your $8, 000 up front… EDIT
Edit It's NOT happeing… Or your "up to $8, 000. " (It is a 10% tax credit. ) First Time Home Buyers Tax Credit Breaking News from the National Association of REALTORS® Mid Year meetings: "The… more
Buying a home in Central Ohio should not be scary
Buying a home should not be scary for first time home buyers or others… Long ago it was customary for all agents in a transaction to represent the sellers. In Ohio at the first appointment you should be provided with an… more
Columbus First Time Home Buyer Tax Credit - income limits
Columbus First Time Home Buyer Tax Credit - More Real Advice Tax Credit Income Limits Who is eligible? Single buyers with incomes up to $75, 000 and married couples with incomes up to $150, 000 are eligible to receive the… more
Central Ohio Open House Advice
Real Living's Advice to Buyers on Open Houses includes this question: Q: I've heard that visiting an open house without my buyer's agent means s/he can't represent me in my home purchase. Is that true? A : Perhaps. … more
Real Living HER Open Houses - Mother's Day 2009
There are only 94 Open Houses on the Real Living HER list now. Search for Central Ohio Open Houses on my website The number of open houses will probably go up before Sunday… although Mother's Day traditionally is not a big… more