Tax Credit Guidance for FHA Loans

In his speech at the National Association of REALTORS® Housing Summit on May 12, 2009, US Department of Housing and Urban Development (HUD) Secretary Shaun Donovan announced a program that allows borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on a FHA-insured mortgage. The details of the program were announced in Mortgagee Letter 2009-15. Government entities and instrumentalities of government may provide a second mortgage. Currently, 10 state housing finance agencies (including New Mexico) offer a product buyers can use that will effectively monetize the tax credit for down payment purposes. Get information on New Mexico’s programs at housingnm.org. Read the HUD Mortgagee Letter. For information on FHA contact Jerry Nagy at 202.383.1233, jnagy@realtors.org.