Hello Jg,

As of this morning California is not one of the states that you can use the tax credit for a downpayment. Here is a list of the states that you can use the credit for the downpayment:

Colorado, Delaware, Idaho, Kentucky, Missouri, Nebraska, New Jersey, New Mexico, Ohio, Pennsylvania, Texas, Tennessee and Virginia. Things change often so I wouldn't be surprised if more jump on board. I hope this helps to answer your question.

Best Regards,
Mike Stawizky
Keller Williams Realty
Commerce Market Center
(248) 980-4406

I think the whole 8K as a down payment varies from state to state - I heard that Florida just passed or will be passing a law in the state legislature that will let first time buyers use the 8K for a down payment.

good afternoon...the feds are trying to work out a way for buyers to use the $8,000 tx credit to buy the home..as of yet, they have not...you can ask the seller to pay up to 6% of the sales price of the home towards your pre-paids and closing costs....many times that will take you to the table without any more money but the emd and first year's hazard insurance......if for any reason, those totals exceed what you need to close, you can get the difference back at the closing and the amount will be reflected on the hud-1........ask your cpa, but you may be able to file an ammended 2008 return at that point and recv the tax credit.......best regards..bob mcclure- success mortgage partners- plymouth, michigan.......

I was told the same thing by Wells Fargo. They got a memo stating that they do not do this as of right now.

I was told by the Bank of America loan officer that they still did not have the go ahead for the bridge loan. I am in Florida though and am not sure if it varies from state to state. It is quite frustrating that they can't get the ball rolling on this.

Hello,

Every day is a new day in this business! As of yesterday, I was told that there isn't a way "yet" to use the $8,000 as part of the closing costs. (You will still be obligated to put 3.5% down) They are still working out the logistics. Your loan officer should be able to keep you informed. If you need to call a loan officer, I recommend Mary Westphal Vitek Mortgage in El Dorado Hills 1-530-417-2304

Good Luck!

Michelle Thompson
Lyon Real Estate 916-804-2981

Indeed it is new, check with your state and housing agencies. I heard rumors NeighborWorks was offering bridge loans ( www. nw. org ) but can't find info on their web site.

Hi Jg,
Your lender would know the details. The lending issues are changing so often these days it is hard to keep up on them, but that is why as real estate agents we leave that to the loan officers. You can read a HUD article at the link below.
As Ute stated, the purchase agreement should indicated under additional terms that and how you are intending to use the first time home buyer credit.
Good luck to you on your purchase,

DeeDee Riley
Lyon Real Estate http://www.DeeDeeRiley.com

Hello Jg. While you can use the $8,000 tax credit to pay closing cost, buy down the interest rate or pay more than the minimum 3.5% down, it cannot be used to pay a portion of the minimum 3.5% down. If the buyer wishes to use the tax credit at the close of escrow, it has to be properly disclosed in the purchase agreement and it should be stated as a contingency making it clear that the offer is contingent upon the buyer qualifying for the first time buyer tax credit and being able to get a bridge loan. Lastly, you'll also have to remember that you can't get cash back at the closing. Thus, if the cost that can be covered by tax credit bridge loan is less than the tax credit, you can't get the excess at the close of escrow. In other words, the bridge loan cannot exceed the amount needed to cover the cost that can be covered by the tax credit bridge loan.

I can refer you to a loan agent who knows how to use the tax credit to pay for closing cost.

Best regards,
Ute Ferdig
916-751-1267
DRE License # 01326917

Hello JG,

I am a Realtor from Michigan but as far as the Tax credit goes, I think it is the same everywhere. If you are purchasing FHA then you are obligated to the 3.5% downpayment and then you can use the tax credit as a bridge loan for the downpayment or to buy down the mortgage later. Here is a link to some new bill that they are proposing:http://www.realtor.org/RMODaily.nsf/pages/News2009061104?Ope…
You should check with your agent and loan officer for more details, or if you have anymore questions about this subject or others feel free to contact me.

Mike Stawizky
Keller Williams Realty
Commerce Market Center
(248) 980-4406