I will be the first to answer no, unless you are using CHFA which has a program where you commit your tax refund to there second mortgage, but the rate on this program is higher than the typical CHFA program. The IRS and HUD ruled early summer that non profits could create a gift program in exchange of your future tax credit, but there are no orginizations which have taken on this challenge. This is a major flaw in the system which goes back to the arguement that many people can afford to make a monthly mortgage payment, but can't seem to save for a down payment (ie. therefore the creation of 100% financing). As mentioned below, HUD has a 100$ down program with a full price HUD purchase. If you aren't in the market for a HUD home http://www.mcbreo.com then I'd recommend a 3.5% gift from family and then it can be gifted back to them after you get the refund.

Good Luck!

Chad Bergman, e-PRO, CML

Apollo Financial
Office 303-733-5950 x248
Cell 303-875-2240
e-fax 303-484-7922
Online http://www.MyDenverMortgage.com

Keller Williams Realty
Online: http://www.MyDenverHouse.com
Linked In: http://www.linkedin.com/pub/1/540/138

How about using a down payment assistance program and receiving the tax credit. Better yet, a lender I've closed a lot of deals with told me that if our Buyer purchased a HUD home he could use a down payment assistance program to pay closing costs, use HUD's $100 down payment program and get the tax credit.

Have a great time looking for your new home!

Sandy Kinslow
The Kinslow Team
Coldwell Banker

Colorado is one of the 10 states where you can do this,but you can only use it for closing costs or in addition to the required 3.5% down payment for FHA.

Absolutely! Low prices, low rates and a tax credit...GREAT TIME TO BUY. Call if I can help.

Derrek
303-470-9880

Here is some great info for you:

http://www.hud.gov/news/release.cfm?content=pr09-072.cfm

Yes! Recent changes to the first time buyer program now allow the $8000 tax rebate to be applied to your down payment at the time of closing. Lenders have been advised how to do this. Keep in mind that to qualify for the rebate the property has to close before Dec. 1, 2009. That means you should be under contract on the new home by around mid October to be safe. If you would like to search for homes from the comfort of your home, our website has an awesome home search tool. Let me know if you would like talk about how to get started in the process.

Marianne Bandy
303-746-7799

I have a client that is getting a gift from Parents then reimbursing them. This is on an FHA 97% LTV. Loan