http://dfwrealestateandhomes.com/?p=359 Real Estate Services for the Dallas-Fort Worth Metroplex Thu, 29 Apr 2010 16:31:23 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://dfwrealestateandhomes.com/?p=359&cpage=1#comment-57 Todd Baker Sat, 11 Jul 2009 16:36:02 +0000 http://dfwrealestateandhomes.com/?p=359#comment-57 The news that HUD will allow the tax credit to be monetized sounded very promising when it was first released but the "devil is in the details". HUD still requires a 3.5% cash contribution by the buyer and will only allow the $8,000 to be used for closing costs which can be handled much easier with a seller credit. Plus, none of the Mortgage Bankers and, more importantly, the large institutional investors, have stepped in with any plans on how to actually monetize the tax credt. I'd recommend sticking with a seller credit towards closing as a much better way to proceed. The news that HUD will allow the tax credit to be monetized sounded very promising when it was first released but the “devil is in the details”. HUD still requires a 3.5% cash contribution by the buyer and will only allow the $8,000 to be used for closing costs which can be handled much easier with a seller credit. Plus, none of the Mortgage Bankers and, more importantly, the large institutional investors, have stepped in with any plans on how to actually monetize the tax credt. I’d recommend sticking with a seller credit towards closing as a much better way to proceed.

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