Can I use the $8, 000 tax credit towards down payment for a house?

Asked by Geek, Silver Spring, MD Tue Jan 19, 2010

Help the community by answering this question:

+ web reference
Web reference:

Answers

7
Ramesh Chand…, Agent, Arlington, TX
Wed Jan 20, 2010
Most lenders won't allow , they don't want to lend u until IRS pays u the credit. U earned the credit only after settlement and apply to IRS. U need 2 make alternate arrangements for the down payment., U really need 2 talk 2 several knowledgeable lenders , if there is a way.
rgds,
Ramesh Chandra
703 635 8209
mepcigroup@gmail.com
0 votes
Mary Alice R…, Agent, East Islip, NY
Tue Jan 19, 2010
I know this question/idea has gotten quite a bit of discussion among our local lenders. I have heard of circumstances where it was done, however, you would have to speak to the lenders in your area. For more info, check out the link below.
0 votes
Bob Lowery, , Baltimore County, MD
Tue Jan 19, 2010
FHA and the IRS do allow the tax credit to be used towards down payment, however, there are no lenders in Maryland (that I am aware of) that are offer this.
0 votes
Debra LaPlan…, Agent, Freehold, NJ
Tue Jan 19, 2010
I believe the answer to this is yes. Consult your lender and they will provide all of the qualifications/details for you.
Good Luck!
0 votes
Jeff Escher, Agent, Rockville, MD
Tue Jan 19, 2010
I believe you can use the $8000 toward the down payment if you are obtaining an FHA loan. Check with your lender for details.

You can also reduce your income tax withholdings in your paycheck to start collecting the credit. If for some reason you do not purchase the home (or don't qualify for the credit) you would have to repay it.
0 votes
Jim Brady, Agent, Bear, DE
Tue Jan 19, 2010
The first time home buyer credit is a tax credit that is applied at tax time so if you settled on a home prior to December 31 2009 you would be get the credit this filing season which has an April deadline. I have heard of some lenders willing to give you a short term loan against the tax credit but have not seen any actually do it at the settlement table. I am sure any program with a short term loan will have a lot of fine print so discuss it in depth with your lender.
0 votes
Patrick Thies, Agent, Anytown, IL
Tue Jan 19, 2010
Ask a lender if there are any programs that will allow you to do this. There were some state programs available in some areas. They allowed you to borrow the credit for the down payment kind of like a bridge loan. They are time consuming though and may no longer be available for the credit extension.
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Silver Spring Zip Codes

Email me when…

Learn more