Financing in Staten Island>Question Details

Rosemarie Ri…, Real Estate Pro in Staten Island, NY

Can anyone tell me how a buyer can use the $8,000 tax credit towards their DOWN PAYMENT?

Asked by Rosemarie Rivicci, Staten Island, NY Wed Jun 10, 2009

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I just read about this in the IAR (Illinois Association of Realtors) newsletter this morning. I will provide you with the link. Even though I am answering from Illinois, you should be able to get good info from this as it is a link to the National Assn of Realtors:…

Hope this helps.
1 vote Thank Flag Link Wed Jun 10, 2009
The latest from FHA is you can use it for closing costs on an FHA loan. The problem is there are no non-profits or Gov agencies set up to make the bridge loans yet.
0 votes Thank Flag Link Wed Jun 10, 2009
Hi Rosemarie,
According to NAR magazine of 5/29, the $8000 can be used towards downpayment, only above the first 3.5% for FHA loan. It can also be used for closing costs, bridge loan, etc. But the buyer has to have the initial 3.5% downpayment. More Info is at
Good Luck,
0 votes Thank Flag Link Wed Jun 10, 2009
You can't.
This was decided on last week, I believe.
0 votes Thank Flag Link Wed Jun 10, 2009
I know with an FHA loan, you cannot use it for a down payment, but can use it toward closing costs.
0 votes Thank Flag Link Wed Jun 10, 2009
Hi Rosemarie! I am currently dealing with buyers who would LOVE to do this -- but according to our Association here in Maine, banks have a choice as to whether or not they will use this program -- and it may take a long while to get the policies/procedures/paperwork/etc. set in order to use the program since it was only recently approved. Many banks here are shying away as the $8K is viewed as pretty much a personal loan to a buyer. I guess I would poll my local banks and see if they are willing to service this program and how long it might take to get that up and running. Not the best news for buyers, but I hope I helped you a little!
--Carole, Wells Maine agent
0 votes Thank Flag Link Wed Jun 10, 2009
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