HUD Re-Releases Guidance on Tax Credit Refund

After the premature release of Mortgagee Letter 2009-15, we were waiting on further clarification as to whether the First-Time Homebuyer Tax Credit (FTHBC) could be applied to FHA’s required 3.5% downpayment contribution from the borrower, thus creating a vehicle for 100% financing. With today’s official re-release of ML2009-15 (view as pdf) comes the answer, in HUD’s typical ambiguous style: “Yes, and no.”