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USDA SHORT SALE w/ 1st time homebuyer credit $8K payback

Posted by Bob Helmig on June 28, 2012 at 9:58am in Short Sale Discussions

If seller is certified into HAFA on a USDA short sale, can  the HAFA $8500 2nd lien payoff be used to pay the

$8000 1st Time home buyer credit payback penalty?

Seller purchased home 4/10 & must Short sale/sell the home prior to the 36 months . 1st time Home buyer credit is only good if owner stays in home for minimum 36 months, otherwise , Owner must return $8K credit.

Any strategies to avoid returning the $8k credit? Thank you- Bob

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Replies

  • Bryant Tutas July 1, 2012 at 6:40pm

    Good question. If this is indeed a USDA loan then it is backed by GinnieMae and is not HAFA qualified. USDA loans are handled similar to the FHA PFS. So I seriously doubt they will pay $8,000 to pay off the tax credit. I would look for a buyer that is wiling to pay it on behalf of the seller. Or see if the IRS will waive the penalty.

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