Zillow Advice: Home Buying - How do I get the $8000 tax credit to use for my closing costs

Homebuilder, a government ...

Mon, 29 Jun 2009 22:39:00 GMT

Homebuilder, a government announcement made May 20 DOES allow the tax credit to be used toware closing (or other purchase) costs. There are two ways to do this: buyers using FHA-approved lender can sell the anticipated tax credit to the lender and use the proceeds to apply the tax credit to any down payment above the min. down payment of 3.5% required with FHA-insured mortgages.
Second, buyers who receive financing through state housing finance agencies and certain non-profits will be able to use the tax credit for their down payments of closing costs via a tax credit advance loa, so long as it does not result in any cash back to the buyer.

It's called a bridge loan. ...

Tue, 30 Jun 2009 14:55:00 GMT

It's called a bridge loan. Irs approved the use of the credit (10% of price of home up to 8000) to use toward the down payment ON TOP of the 3.5% required for the FHA loan.
You can also get the credit sooner 10days to 12 weeks after you close if you file form 5045-basically you would be altering your already filed return for tax year 2008(filed in 2009)-my sister closed in the beginning of may and got her $8000 check yesturday.
check out IRS.gov or FHA.com for more info.

Until the credit hits the ...

Tue, 30 Jun 2009 14:41:00 GMT

Until the credit hits the IRS and is approved by the IRS- you will not know if you will get the total amount. If there is anything attached to your refund-child support, student loan, back taxes etc.. the credit will be used to pay this debt first then you will receive what is left if anything.

Run that by me again; you ...

Mon, 29 Jun 2009 22:10:00 GMT

Run that by me again; you said, "HUD recently approved the $8,000 credit for use on the closing costs on a house purchase" How can that be when you must first purchase the home, the credit is not payable until you file your 2010 taxes for tax year 2009, and HUD does not distribute the credit, IRS Recovery Act does. Only way you could have done this is sign an agreement with HUD that they are entitled to your totally tax refunds for year 2009, and I would not do that. What you going to do if you do get the full credit and an additional $4,000 back on overpayment of taxes, you think HUD is going to reimburse you the difference. Ask yourself has any government agency every gave you any money over what you pay them except IRS. I will be open ears to hear how this turns out for you...