Comments on: HOW CAN THE $8000 TAX CREDIT BE USED TOWARD YOUR DOWN PAYMENT?

By: reenzz

reenzz — Mon, 15 Mar 2010 23:05:59 +0000

In some states, lenders ARE offering a bridge loan on the 8K to help with closing costs. You would need to contact your lender and see if they offer such and if you qualify.
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By: Big Deal Maker

Big Deal Maker — Mon, 15 Mar 2010 22:19:59 +0000

Kitty:
The wording should give you a clue to the value of the $8000.00
It is a tax credit and nothing more.
It can not be used for a down payment it is what you can use in the first year of a tax credit.
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By: chatsplas

chatsplas — Mon, 15 Mar 2010 21:35:59 +0000

CAN’T (definitely not in Illinois). It is not intended for those who can’t save up for a down payment and closing costs.

This is a tax credit. You get the money only by amending your tax return AFTER you have closed. You should put it down as additional principal payment on your house GREATLY reducing the amount you pay for your home over time. Look at how you pay 3-5 times home’s cost by all the interest you pay over time. Takes about 12 weeks for amended return to be processed, as IRS is validating every Form 5405.
References :
tax pro

By: ibu guru

ibu guru — Mon, 15 Mar 2010 21:22:59 +0000

It does help offset closing costs — as a sort of "reimbursement." You must have your own funds for the down payment and closing costs. There is NO way you can use this money at closing because you are not eligible for the credit until after you have already closed!

After the closing, you will need the closing documents to prove the purchase has been completed & then you can submit for the tax credit. It will take at least 12 – 16 weeks after submitting the tax forms to receive the tax credit.
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