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This question gets asked over and over again. And the answer is, "It depends."  This seems like the right time to reiterate that real estate is local.

GENERAL INFO

EXCEPTIONS

But.....but.....yes, there are exceptions ... some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment.

The reference to the state finance agencies may have been what got folks thinking that the tax credit can be used as the ENTIRE down payment

So what states have already instituted some type of bridge loan?

From this link, it appears that the following states already have something in place:

  • Colorado
  • Delaware
  • Idaho
  • Kentucky
  • Missouri
  • Nebraska
  • New Jersey
  • New Mexico
  • Ohio
  • Pennsylvania
  • Tennessee
  • Virginia

Supposedly, Florida has also passed this bill, but this information hasn't been formalized on NCSHA's site. This may also be in discussion in Califonia where we already capitalize on other programs namely:

  • California NEW Home Tax Credit up to $10,000
  • Energy Efficiency Tax Credit up to $1,500
  • California Mortgage Protection. Eligible first time buyers who lose their jobs may receive up to $1,500 per month, for six months, to help make their mortgage payments.

    • WHEN IN DOUBT....

    It seems that the only logical thing to do is to go to the main sources of information, especially the IRS.

     
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    4 Comments on "Can I use the first time buyer tax credit as my down payment?"

    JUL
    15
    2009
    584,729 Points 69 Featured Posts Called Shot Master

    Pacita - I am getting barraged with people wanting to know how to do this, which puts me in the unfortunate position of telling them that I have no resources that will allow them to do this.  While HUD and indicated that this can be done, here in CA, I have yet to see any of my lending sources or any of the housing agencies come up with a program to do this.

    For the record folks:  HUD does not loan money and just because HUD says it can be done doesn't mean that HUD approved lenders will implement it.
    10:58am • #1
    584,729 Points 69 Featured Posts Called Shot Master

    Pacita - I just wanted to add one more thing for CA borrowers to think about.

    The state of CA is broke, which means that the state agencies are being forced to reduce their budgets not increase them with new programs.
    11:01am • #2
    JUL
    17
    2009
    461,907 Points 47 Featured Posts Localism Sponsor Hit Router Attended Rain Camp Called Shot Master

    Donne --- yes, CA is broke. We need all the money we can get. And with our current dire financial situation and issuing IOUs, I don't know if the legislators will pass a bill to make this happen. CA just ran out of money for the new home tax credits and stopped applications in July 3.

    The only solution, other than continuing to come up with new taxes may be to cut, suspend or postpone services and be more efficient in doling out funds. Sounds simple but we can't continue to spend money we don't have (sounds like my household).

     
    12:11pm • #3
    584,729 Points 69 Featured Posts Called Shot Master

    Pacita - You're singing to the choir girlfriend.  Hubby and I had to tighten up our financial belts and alter our spending and lifestyle more than a year ago (hubby is a commissioned sales person in another field).  If we hadn't, we would have never survived 2008.  As it were, we just barely did. 

    These days, we are soooo much more frugal and will remain so for probably quite a while.  The economy woes are not over yet and, personally, I think it's going to get a little worse before it starts getting better.
    12:23pm • #4

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