Home Selling in Fostoria>Question Details

Andi, Home Seller in 44830

are banks allowing the tax credit to be used for closing costs?

Asked by Andi, 44830 Sat Feb 6, 2010

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5
Basically, no, but there are always loopholes I suppose. At first they were going to allow this, then they changed their minds.
0 votes Thank Flag Link Sun Feb 7, 2010
Andi you need to talk to a lender that does OHFA loans. You can get a 2.5% second on top of your FHA loan so you only need to have 1% of your purchase money for the loan. You can repay the 2.5% second after you receive your "house warming gift" from we the people!
A word of caution you will need more than 1000.00 to buy a 100,000.00 house. There are things like ernest money, application fee for the loan, appraisal, WDI inspection, and whole home inspection that need to be paid for before you get your loan.
You can also do a USDA loan in a lot of the areas around Fostoria. I have some clients right now that are buying with a USDA loan in SW Ohio and they may not have to come out of pocket for any closing costs including their first year of property insurance.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Sun Feb 7, 2010
Not that I've seen. There is still time for a buyer to take advantage of this program. Need the accepted offer by April 30th and need to close by end of June. You can also file an amended return to facilitate an earlier return of the credit.
0 votes Thank Flag Link Sat Feb 6, 2010
No, unfortunately it is not allowed--speak to your tax consultant after your closing about an amended tax return if you wish to get your hands on the money faster.
0 votes Thank Flag Link Sat Feb 6, 2010
Andi
No , they were going to and then they changed their minds. You can add it to the down payment above the down payment that is required but that is just a big headache.

You can however apply for the credit during the year, you do not have to wait until the end of the year to file.

Good Luck!
0 votes Thank Flag Link Sat Feb 6, 2010
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