Hi
You actually can get the credit before your loan closes, so you can use some of the funds to help with your closing costs (NOT your down payment). But you do have to have the offer in place and the loan in process and approved, prior to getting the refund.

I hope this helps.

Tallyj,

The following website contains the answers to most commonly asked federal housing tax credit questions.
http://www.federalhousingtaxcredit.com/2009/faq.php

Good luck

You must buy a home before December 1, 2009. This means you must close on it by November 30th, but you must buy in order to claim the credit. You can't get it in advance with a promise to buy if that's what you are asking. I hope this helps.

Greetings Tallyj:
The First Time Home Buyer's Credit (meaning that you and any co-buyer have not owned a home in the past 36 months) is an income tax credit of $8,000 or 10% of the purchase price, whichever is lower. If you purchased your home in 2008 you must pay back the credit over 15 years with no interest due, at the rate of about $500 per year. If you purchase a home between January 1, 2009 & November 30, 2009 - you do not have to pay back the credit. You must occupy the home as your principle residence for at least the next 36 months, but then the credit is forgiven. Yes, you must purchase a home first to get the credit. Go to http://www.irs.gov and look for form 5405.