Remember how the government was going to allow lenders to âmonetizeâ the $8,000 first-time home buyer tax credit? Apparently itâs still a go but according to the law firm of K&L Gates LLP, reworked guidance from the Federal Housing Administration puts âsignificant limitations on the ability of an eligible borrowerâ to use the tax credit for downpayment costs and offers no guidance to FHA approved lenders on how to structure the process of monetizing the tax credit. Also, the law firm says FHA places âconsiderable responsibilityâ on the part of lenders to ensure that borrowers actually qualify for the tax credit and that the closing costs are reasonable...
Processing Content
