Profile picture for Pathfinder11

Can the Tax Credit be used for Closing Cost.

I was told that the $8,000 dollar Tax Credit could be used for Downpayment or Closing
Cost ( First Time Buyers), but when I asked our Lender, We were told that the Tax
Credit could not be used for Closing Cost at this time. The reason I inquired about it
was I read an Article dated May29,2009, that stated First Time Buyers could use this
Credit now instead of having to wait till you filed your 2009 Tax Return. Thank You.
  • August 08 2009 - Rialto
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (5)

Profile picture for Las Vegas agent
Yes, you can use it for your closing costs.
It is on a national level. Some are administered by non profit groups and some by lenders, but all the assistance is done as a bridge loan until you get your money from the IRS to pay it back.
If you understood that they would give you the money in advance to do it, sorry, but ihas to be done as a payback type of loan.
Go to the hud website and locate the names of some local non profits, you will likely have to take a class like the one I teach to get the certificate.

Despite the fact that we have a Sellers market with multiple offers on homes, I request  closing costs from the seller and have my buyers pay down their loan with the money. Not having to borrow $8,000 over the life of the loan is the equivalent of getting a new car for free.

Good luck

Las Vegas Real Estate
  • August 08 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It depends on which state you are in. I have only one lender  who offers that to FHA-approved clients. You need to shop around different lenders to find who would do it.
  • August 08 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

There is one lender in CA that offers a Second Poistion Loan for 3% of purchase price, that loan can be used towards down payment OR closing costs for FHA.

The program is called CHF Access.  This might help you if you are a little bit short of funds required to close.   It is subject to income limitations at max 120% of AMI. 
  • August 08 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I don't know of any California lenders that are on board with this nor do I expect them to be any time before the program is slated to end. I have heard rumors that some are doing it, but I haven't been able to find one.
  • August 08 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for sunnyview
Some states have 0% interest bridge loans available so that buyers can use the credit in advance of receiving it for closing costs or part of a down payment. In states that allow the use of the credit in advance for a down, buyers still must come up with the minimum required down payment for FHA loans of 3.5% first before the credit can be applied to the down. Not all states have those programs so you would have to check to see if it was available in CA if you are buying there. I have not heard of CA having that, but a local lender or realtor could tell you 100% certainty what is available. 
  • August 08 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.