One of the most common questions I’ve been getting lately is ‘How do I get down-payment assistance?’
Well, if you’re in Edmond, Oklahoma City, or other areas in the OKC metro, there are a couple of ways to answer this:
- First, there’s the $31M bond money available to first-time homebuyers.
- Secondly, AND THIS IS BIG, there’s another way to get the assistance; I posted about a twist to the Home Buyer Tax Credit several weeks ago, and now Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, has announced that it’s official… YOU CAN USE THE $8K TAX CREDIT AS A DOWN PAYMENT!!
So, here’s what I’m saying… if you haven’t owned a home in the past 3 years, and you meet the other requirements for the Home Buyer Tax Credit, YOU’D BE NUTS not to take advantage of this program!
Need more details? Call us now and we’ll be happy to get you pointed in the right direction!
About Ryan Hukill
I understand where you're coming from but I have a hard time encouraging someone to use my money for a down payment–just because the government said they could.
Tom, I totally understand where you're coming from. I'm not a supporter of the stimulus bill, nor am I a believer that the government can 'fix' our economy, but I do believe that housing is what will lead us out of this economic downturn. This program is one small step toward helping the housing industry rebound. Fact is, the $8K credit was already available (thanks to our tax dollars) so does it really make any difference to you and I whether the beneficiaries of the program get the money before or after closing?
Ryan,
As an update to this, HUD has rescinded Mortgagee Letter 09-15 that stated their intention to allow the use of the tax credit as collateral for a bridge loan to provide money for down payment and closing costs. (Just saying what it really was is even complicated.)
Alternatively, home buyers seeking down payment assistance can turn to their local community action agency. CAP, here in Tulsa, has a program that helps with up to $3500 toward down payment. There are income guidelines, of course, but it is an alternative to the bond money that carries a higher interest rate than what is currently available to most buyers.
We will keep an eye out to see if HUD brings this back, but I am dubious that a workable solution can be in place before the current tax credit expires. Remember that even if HUD allows it, they only say they will insure the mortgage secured with it. It does not mean that the lenders will be on board and allow it within their guidelines.
As an aside, I hope you and J-man have enjoyed your trip to Green (and moist) Country this week to watch the Wolves.
<abbr>Tim Epps’s last blog post..Broken News! Call a Mortgage Professional to Discuss Your Down Payment Options</abbr>
Tim, thanks for your expertise on this. By Wednesday afternoon I had been told by a couple of credible sources that the announcement by HUD was premature, that the program was on hold and that there would be a retraction statement released. I always prefer to have credible sources to link to when I post news here, so I've been waiting to see an official retraction statement, and still haven't. Do you know if there has been one yet, and if so, would you mind sharing the link here? Thanks again for your input!