OK, so just add me to the endless list of bloggers blogging about the first time buyer home loans-$8000 tax credit-turned additional down payment-pay down option-closing costs supplement. I do say “hooray!” to this assistance as it will help get more people back into homeownership. My customer roster alone has as many true first time homebuyers as buyers who have not owned a home in over three years. I’ve attached a link to some additional tax credit info from HUD.
There is just the caveat that the buyer still needs to come up with the 3.5% minimum that is required of FHA loans. (At present, Florida is working on the exception that lets non-profits use money for true down payments assistance; only 11 states currently participate.) This is in keeping with HUD’s philosophy that caused them to yank seller funded down payment assistance last October.
I’ve always been a huge proponent of having “skin in the game” and this opportunity is no exception. But when the confetti has settled, I still want to understand how this is going to work logistically. It is not very clear how these funds will be tracked or represented or paid back since they can potentially fill a void in several different scenarios monitored by several different institutions and industries.
I know that every journey starts with one small step; I just want to make sure we don’t get lost this time.