FHA/HUD Rescinds Tax Credit Monetization

I just received word today from Kimberly Kahl, the Executive Director for the National Association of Exclusive Buyer Agents that HUD has rescinded the monetization of the First Time Homebuyer Tax Credit.

From Kimberly’s email today:

“According to contacts with both FHA and HUD, Mortgagee Letter 2009-15, which stated that first-time homebuyers would be allowed to use the tax credit for their downpayment, has been rescinded. On a phone call with FHA, I was told, “The mortgagee letter has been rescinded for the time being." NAEBA President John Sullivan was told something similar when contacting HUD. Neither FHA nor HUD gave further details. If we hear anything further, we will let you know.” –Kimberly Kahl, CAE –NAEBA Executive Director–

So close and yet so far! I hope HUD reconsiders. This was a great idea that could have helped many first time homebuyers.