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? asked in Business & FinanceTaxesOther - Taxes · 10 years ago

Is a FHA loan the same as a tax-exempt mortgage revenue bond?

I received the 2008 First Time Homebuyer Credit (which is more like an interest free loan repayable over 15 years). My loan is a FHA loan through CountryWide and now through US Bank (it was transfered). I was under the impression that an FHA loan is not the same as a tax-exempt mortgage revenue bond. However, I just received a letter from the IRS today indicating I was not eligible for the credit. I called the IRS and waited on the phone for over an hour because I wanted to find out why I wasnt eligible- however, I was only told they don’t have that information and that I need to repay the "interest free loan" all back immediately.

I meet all the other criteria to receive the loan so I am thinking they are considering a FHA loan a rtax-exempt mortgage revenue bond. Here is the criteria for the credit:

I earn under $35,000 a year.

I did not buy the home from a close relative.

It is still my main home .

I am a citizen of the US.

I do not live in the District of Columbia and did not take the District of Columbia credit.

I do not own or have never owned another home.

So the only thing left is:

Your home financing comes from tax-exempt mortgage revenue bonds.

Could someone please help? Thanks!

1 Answer

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  • Judy
    Lv 7
    10 years ago
    Favorite Answer

    No, they're not anything close to the same, so that's not the problem.

    When did you close on the house? Do you have a spouse who's ineligible for any reason?

    Contact the taxpayer advocate http://www.irs.gov/advocate/article/0,,id=212313,0... and ask them to either find out and explain to you why you aren't eligible, or to help you get it straightened out if you really were eligible and this is just a mistake.

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