Henry is it your Professional advice that Homebuyers can use the Tax Credit for Downpayment and
and lenders are making this "bridge loan" based on Shaun Donovans statement at a NAR get together.
I know NAR made the claim, spread the news and members blog/answer everywhere that it is so but is it really?

Did you read any of the discussions betweens Lender/agents at activerain, inman's, agentgenius, realtor.org ect, many seem to have a different take on it. Are they wrong? .. http://activerain.com/blogsview/1075899/using-first-time-hom…
http://activerain.com/blogsview/1074376/false-info-flying-ar…
http://activerain.com/blogsview/1077766/nar-you-silly-old-go…

Do you have new information that the May 12 announcement is anything more than an inaccurate statement of fact from NAR?
Dunes

Quareo, Before you make any plans some reading of what the IRS says is your best bet. They'll be the ones deciding who will get what for what...... http://www.irs.gov/newsroom/article/0,,id=187935,00.html

As far as the Tax Credit for Down payment thing you might want to read this first..
http://activerain.com/blogsview/1075899/using-first-time-hom…

Quaer,

As a local realtor, I have to agree with Duines (buyer/seller) on this question.

In my view, the monies spent on hiring an attorney (who, most likely is NEW to this issue) and a tax professional (who may also not be 100% be accalimated to the new tax laws (and learning at your expense)) may supercede the savings as they may choose to charge per hour on a non-tradtional based mater.

To substaniate my ascertains, I'd refer to the Bush Plan of a $7500 tax credit (to be paid back) that was adjusted by Obana to the non payback of $8k. It's all tooooooo new to give an affirmative answer.

Love and Peace,
Francesca, Realtor, ePro
732.606.2931 (24/7)

Quaero45, Please noticed who announced that the Tax Credit could be used for Down Payment as a fact.
http://www.associatedcontent.com/article/1740312/national_as…
Also here are some discussions that might interest you on the Tax Credit/Downpayment story among RE agents and mortgage people.
http://activerain.com/blogsview/1074376/false-info-flying-ar…

I don't think you're going to get the $8,000 before you buy the house, but I'm just a Non-Pro.

Dunes

HUD Secretary Shaun Donovan told a group of realtors Tuesday that he wants to let borrowers use their $8000 tax credit towards their FHA 3.5% downpayment.
According to both FHA and HUD, Mortgagee Letter 2009-15, which stated that first-time homebuyers would be allowed to use the tax credit for their downpayment, has been rescinded.
They give it and they take it away.
There are several avenues to go to to get the downpayment funds from local and state agencies.

Here's the link to the site that explains in detail http://www.nj.gov/dca/hmfa/consu/buyers/ownprg/tclp.html

There are some ways to get the $8,000 in advance, from various state and local programs, and through some lenders, usually if you use it for closing costs or for a down payment. NJ gives up to $5,000 in a no-interest loan to people who buy through their HMFA loan program. Also on Tuesday, the head of the Housing and Urban Development program said they would accept the money for a down payment on FHA loans.

For more on that, see here: http://www.nj.com/business/index.ssf/2009/05/nj_gives_homebu…