Can Tax Credit Really Be Used Toward Closing Costs?

The National Assn of Realtors reported May 29th that FHA approved lenders could now use the $8000 tax credit to help themselves with certain costs at closing; prior to the tax credit being applied for and paid to the homebuyer.  Some type of bridge loan product.  The homebuyer must still come up with their own 3.5% down, but can use the tax credit to cover closing costs, buy down their interest rate or to place more money down.  But as of last week, the FHA approved lender, which I work with on an ongoing basis, told me she has not yet to find an investor that will go along with this new development.  So if it actually becomes reality in the future, who knows?  Keep checking with your approved FHA lender for more details.  It's a great idea, though.