HUD Secretary Donovan Announces That the New $8,000 Homebuyer Tax Credit Can be 'Monetized' and Used for Downpayment

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Until now, families could only access this tax credit after filing their tax returns with the IRS.

HUD Secretary Donovan’s announcement details FHA's rules allowing state Housing Finance Agencies and certain nonprofits to "monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments.

Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate.

Read HUD's news release.
Read FHA's new mortgagee letter.

NeighborWorks America Launches Social Media Presence

NeighborWorks America announced this month the launch of a new social media program. NeighborWorks is now engaging in a range of social media platforms – from this news blog and Facebook to Twitter and Flickr – to better connect with our audiences and to more rapidly disseminate news and information about the organization and the housing and community development field.

“The addition of a social media presence to our communication strategy enables NeighborWorks to interact with our target audiences about the issues that are important to them. It will continue to raise the profile of NeighborWorks as a leader in the nonprofit industry and give us the opportunity to build audience feedback and needs into our strategic planning,” said Linda Cotton Perry, director of Development and Communications at NeighborWorks America NeighborWorks America.

Learn more about how you can stay connected with NeighborWorks America

NeighborWorks Business Leadership Award Recipient Honored

Yesterday the Santa Fe New Mexican reported that local business leader William C. Enloe was recognized by NeighborWorks America with the 2009 NeighborWorks Business Leadership Award. Click here to see the article.

Congratulations to Mr. Enloe and all of the 2009 NeighborWorks Award recipients! To find out more about the 2009 NeighborWorks Awards and this year's honorees, visit the Awards page on the NeighborWorks web site.

Face-Lift for Foreclosure Prevention

The Obama administration is attempting to revive the stalled Hope for Homeowners program that could restore equity to hundreds of thousands of borrowers whose home values have plummeted. According to the Washington Post, after eight months, the program has helped just one borrower secure a more affordable loan.

President Obama signed legislation last week simplifying and lowering the cost of the program for lenders and borrowers. Lenders that participate also are eligible for incentive payments from government bailout funds.

The article also reports that the revised program is now attracting some unexpected backers: Investors who had refused to consider the program's requirement that they forgive some of a borrower's mortgage balance if the home is worth less than is owed, known as being underwater, are now trumpeting that provision. Read more from Washingtonpost.com.

New NeighborWorks Video Demonstrates the Value of Prepurchase Counseling in Preventing Foreclosure

A new video from NeighborWorks America demonstrates the value of getting homeownership education and counseling before purchasing a home.

At the center of this piece is a new homeowner who was proactive in getting the guidance she needed.

It also features NeighborWorks America CEO Ken Wade, who emphasized that prepurchase education is an important weapon against foreclosure.

The counseling services of network member Resources for Residents and Communities of Georgia Inc. were highlighted in this video as well.

The video was completed in partnership with National Business Series, a production company that produces educational documentaries for public television. View video.