Lynn
There is a lot of discussion out there of lenders allowing the $8000 tax credit to be used towards the closing costs now and being repaid when the credit is issued. While it is something that has been "approved", I do not know of anyone that has actually put together a program that will go through the underwriting process. So while the quick answer to "is this possible?" is Yes, the hard truth is NO this isn't something that will be able to be used to get in to a home before the deadline and qualify for the tax credit.
As stated already, FHA does allow sellers to contribute up to 6% towards the buyers costs. Your best option at this time is to meet with a loan officer that is well versed in FHA loans and can advise you on your options and then meet with a local Realtor that knows the market you are looking in to get you in contract on a home quickly. Time is running short to process a loan in time to close before the end of business on November 30th to qualify. Some lenders are actually requiring buyers to sign a disclaimer that they understand that while every effort will be made to close prior to the deadline, it is not guaranteed due to the underwriting process.
Good Luck! It is a great time for a first time buyer to buy a home!!!

Hi Lynn,

I just got off the phone with a Bank of America (BOA) mortgage loan officer. BOA is NOT using the $8000 tax credit for closing costs on FHA loans. Nobody seems to have been able to implement that. They do have a program through Florida Assist. For people with an income below $41,400 or 2 people below $47,400 there is a $7500 down payment program. It is a second mortgage at 0% interest. The tax credit can be used to pay it off in 2010 or it can be paid off when the home is sold. The mortgage interest rate is a little higher (about 5.75 was the figure she gave me for today) BOA applies for the Florida Assist Program, the Buyer must attend a first time homebuyers' class. This is state money, not county, so she did not think there would be an availability issue. You can go to the website: http://www.floridahousing.org/home/ and click on the green wizard for more information or call BOA direct.

The person I spoke with was: barbara.hale@bankofamerica.com
Barbara Hale
Mortgage Loan Officer
(727) 773-8324 off.
(813) 404-5666 cell
(866) 562-1362 fax

Hope this helps. Any other questions feel free to call or email me directly.

Sincerely,

Pam Cohn
Broker Associate, GRI, CDM
Prudential Tropical Realty
pcohn@prutropical.com
727-204-7155

Lynn,
We have all be waiting for the moment when this program ($8,000 credit as downpayment) is available in Pinellas County. Here is a web site to visit.
http://www.floridahousing.org/Home/HousingPartners/LocalGove…
Click on the 'Ship' link to research what is available in your community.
Annette Lawrence
ReMax ACR Elite Group, Inc
727. 420. 4041

I do not think so. Right now the only way to use the Tax credit toward your purchase is to refile an amended 2008 tax return. You need to act quickly though because as far as I have seen, the credit will expire if not closed by Nove 30.

http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet=7
this is the link to the IRS website that explains it better than I can.

You need to complete Form 5405 with the amended return.

Please note, if you have not already found a realtor, i can put you in touch with someone that can find you a home you love that can be closed in time for you to take advantage of the tax credit.

We can get you approved just as quickly.

Please let me know if you would like my assistance.

I would be glad to help,

Andrew Kashella
AKashella@TLTLoans.com
727-331-8405

No but with an FHA home loan the Seller can pay up to 6% of your closing cost and prepaid taxes and insurance. With an FHA loan the underwriting is done from a common sense approach to lending rather than a credit score driven approach. FHA home loans are very easy to qualify for as long as you have stable, predictable income and you pay your bills on time.

http://www.fhamortgagefhaloan.com/