Academy Mortgage Corporation

YOU WANT TO USE THE
TAX CREDIT TO BUY YOUR NEW HOME?
 
 Good Luck!
 
 
 
 
 
 
 
Here are reasons why it has major challenges. . .
 
  • ONLY FHA Approved Lenders or Non-Profits can ‘Purchase the Tax Credit’ from a borrower. Your lender COULD buy the tax credit from you but most lenders wouldn't choose to.  
  • None of the funds can be used for the 3.5% required down payment.  They can be applied to down payment above and beyond the required 3.5% downpayment.
  • ONLY you the borrower can receive the funds from the IRS.  We as the lender could not buy the tax credit, and have you assign the right to the funds to us and have the IRS mail us the refund.
  • The lender cannot encumber the property being purchased in any way to secure the funds they advanced you.
  • IF a lender advanced the monies to you the tax payer/borrower, there is now way to secure that advance.  A lender couldl loan the funds to the borrower, they could apply them to the home purchase, the borrower could get the refund……and then refuse to pay the lender back. the lender could then take the borrower to court, get a judgment then try to collect. That sounds like fun!   
 
Now, it could be beneficial for a borrower if there are NO seller paid closing costs offered or agreed to, and this could be a way to get those funds……BUT the questions still remain who would advance funds without any way for securitizing the funds or a vehicle for collection of funds.
 
Also, the folks at FHA don’t have any information on ANY companies offering either the secondary financing or the Tax Credit Purchase.
 
So this will make for great talk around the water cooler and "my neighbor said ____" but bottom-line in the words of Shakespeare…
 
Much ado about nothing.
 
PS
You 1st time homebuyers can buy your home first - and then talk to your accountant about how to get the tax credit either in your 2008 taxes which you can amend or when you file your 2009 taxes. 
 
As usual consult a tax professional which we are not!