Monday, June 9, 2014

Update: Homeownership Month Ideas: Michigan HFA Offering 3.125% Rate Loans in Targeted Areas and Will Reimburse Buyers for Any Actual Recapture Obligation.

Update:  Google search HERE shows several states offer reimbursement of any actual IRS recaptured funds for bond financed loans.
A PDF of Michigan HFA announcement is HERE; rate is 3.125% for loans without down payment assistance, with total of $30 million available.  (Appears HERE that standard bond rate is 4.125%, so targeted buyers are getting a 1% break on their rate). 

Recapture Reimbursement Program Eliminates Key Objection to Using SF Bond Program.
One of the top home buyer concerns about state single family bond programs is the concern that the buyer may have a reimbursement obligation to the IRS if they sell the home. (to recapture bond subsidy costs). 

While this concern is often overblown, Michigan totally removes that sales objection by committing to reimburse any buyer who actually incurs a recapture obligation.  An explanation and a listing of the documentation required HERE.

Originally created and posted on the Oregon Housing Blog.

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