I was just waiting for a couple of days to make sure that this announcement wouldn't be changed - as it was the last time.
FHA approved lenders are allowed now to issue so called 'bridge loans' that will allow the first time home buyers to use the funds to:
- cover their closing costs
- buy down their interest rate
- or put down more than the minimum 3.5 percent (the funds cannot be used to cover the minimum 3.5 percent). In short what it means is that the 8K cannot be used toward the downpayment of 3.5 percent.
Due Diligence
FHA expects that entities purchasing tax credit assets will employ appropriate due diligence
measures including, but not limited to:
• Require the homebuyer to draft and provide the IRS form 5405 “First-Time Homebuyer Credit.”
• Contact the borrower’s employer and review pay stubs to confirm there are no outstanding garnishments.
• Review the homebuyer’s credit report to ensure there are no unpaid student loans, or other obligations that could be offset against the credit.
• Validate that all of the eligibility requirements for the tax credit are fulfilled
• Review previous tax returns and IRS tax assessment letters, if any, to determine that the borrower does not have unsettled obligations to the IRS
If you need more information or if you want to receive the IRS form:
call me at 405.812.1572 or email me: Bo@Okla-OK.com
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With smiles,
Bo in Yukon
Search Homes in Yukon, Mustang and Greater OKC Metro
Bo Kociuba, Realtor®
Serving Oklahoma City Metro - Yukon, Mustang, Tuttle, Piedmont, Newcastle, Bethany, Oklahoma City and Edmond
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