Chris,

Excellent question . . . obviously your head is spinning as radily as our heads are with all of these changes.

Yes, revisions have been made to the original plan that provide for potential homeowners to apply these mones to closing costs upfront as well as newly created (as of 5/29/2009) bridge loans are offer to potential homeowners for the totality of these costs, See http://www.trulia.com/blog/PatrizioRE/2009/04/5000_cash_adva… .

As for a govenrnmental "link" that would provide u with guidance . . . well, my most popular is now resulting in a "site not found!" response.

The best advice that any of us can give is to consult with a Tax Pro for the most definitive reponse realizing that none of us can provide solid answers in this ever changing market.

Love and Peace,
Francesca, Realtor
Francesca@PatrizioRE.com

Good evening Chris

To give just a little more info ....The revisions for the 2009 tax credit are as follows
1. an increase from up to 7,500 to up to 8,000 based on ten % of purchase price
2.2008 the tax credit had to be paid back over 15 years (no interest loan) and in 2009 the credit does not have to be paid back if one lives in the house for 3 years before selling it
3. in 2008 the credit ws received after one closed on the home and was UNABLE to use the credit for the closing costs & downpayment.
in March 2009 this changed ...people are able to use up to 5,000 of the 8,000 towards closing costs / downpayment through the NJ state program ...Here is the link for more info in regards to "the prefund" and listed you will find all the lenders who participate.

http://www.state.nj.us/dca/hmfa/consu/buyers/ownprg/index.html

I hope this helps in regards to the revisions ...if you have any other questions in regards to the credit /or other homeownership questions DONT Hesitate....call me at (732) 995-4289 or email at sloane.weinstein@century21.com

Good Luck!!

Sloane Weinstein
Century21 Worden & Green
Realtor Associate

Direct (732) 995-4289
Email sloane.weinstein@century21.com

Here's how it works in VA. I think NJ is doing something similar - check with your state or local housing agencies. It is VERY new, many professionals are still feeling their way through this.

Chris,

Take a look at this information and discussion and I think it may become a little more clear.
http://activerain.com/blogsview/1094377/-8-000-first-time-ho…

Also have you looked at the information provided by the IRS?

http://www.irs.gov/newsroom/article/0,,id=187935,00.html

Good luck, Dunes

it does not have to be paid back if you occupy the house for 3 years. originally it could not be used for closing or downpayment. now,some lenders are offering a bridge loan which is to be paid back after credit is recieved. 10 states,including new jersey will allow it to be used as a second lien and may not exceed the total amount needed for down payment,closing and prepaids.