Profile picture for dinky235200

Can the 8000 dollar tax credit be used for downpayment and closing cost?

Is ther a morgage company that has created a bridge loan for the 8000 dollar tax credit to be used for the downpayment and closing cost for the purchace of a home?

  • December 25 2009 - Hialeah
  • 0Yes

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Answers (3)

Profile picture for dinky235200
I appreciate your input obama has been qouted as saying he dont see why the tax funds cant be used for closing and downpayment cost even hud has stated they dont see anything from stopping a company from creating a bridgeloan, (gooogle the question for details}, but we all know politics, but it seems to me that someone might make alot of money on a bridgelloan on the tax credit with a house as collateral. Does nt  seem strange that a morgage company is willing to loan you a amount of the value of the house and interest, yet wont trust a bridgeloan from the same borrower to cover the very loan they fiance,
  • December 26 2009
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Nope!  The ~$8,000 tax credit is just what it says - it's a tax credit.  You cannot even apply for the tax credit unless and until you have completed the purchase transaction for your home.

As for bridge loan to cover down payment and closing costs, I would seriously doubt there are any loan products out there that would allow this.  With an FHA loan, the buyer must either pay the 3.5% down payment with their own funds, or they must be 'gifted' to them by family or friends.  HUD will not allow down payment funds to be borrowed.

I'm not sure about VA or USDA loans, so maybe somebody else will pick up from here.
  • December 26 2009
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Profile picture for Mark LeMenager
I don't know, but I'm curious to see what answers come up.
  • December 26 2009
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