In theory one can use the 8k tax rebate as a down payment. I say in theory because I have not found a lender yet who will process this way. But assume this will work out should you use the money as a down payment? I think it depends.
If you are using USDA or VA I say no. Here is why. Assume the 8k as a down payment will save you about 10-15 dollars a month on a 30 year fixed. So at the end of year one you will have saved 120-180 dollars. But if you take the 8k at year end you could put it in a CD and make 10-15 dollars a month and HAVE 8k in case something comes up.
For FHA this may be the way to get to your 3.5 percent down and if that is the case this is a good thing. At the end of the day a Realtors role is to point out these things to you and maybe direct you to your accountant. With all the programs out there our role has become even more important
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