OfflineHello DG family!
I was hoping someone could fill me in..
I remember hearing about the possibility of being able to use this as a down payment. Does anyone know if there is an element of truth to this?
I know that it is an $8000 tax credit which is applied to your tax return. It must be used toward a property which you intend on living in and you must live there for 3 years following. You also only qualify if you have not purchased a home in the last 3 years, while earning less then $75k/year. So long as you meet this criteria, you do NOT repay this credit.
But I cannot find information regarding using the credit towards a down payment. This leads me to believe it is not possible? I was hoping this was not the case, because this could be a huge benefit if possible.
If anyone has information, please let me know.
Thanks and good luck all! 
-Mike Hutchins
Hi, Mike. I just found this forum in trying to learn about this issue. Here's what I've found in the news, from my mortgage broker, etc.:
1. HUD as approved the use of the $8K as part of the down payment on an FHA loan. This does not replace the need to come up with 3.5% yourself before using the $8K; it just gives you a chance to make a bigger downpayment.
2. Even though this has been allowed by HUD, the lenders don't have to cooperate...and they are not! Because what it means is that they're "lending" you the $8K until you get it back from the government and they're not going for it.
Hope this helps.
Hello,
mgactress you sound like a mentor!From what i was able to take in,Go Go Go government.What mgactress wrote,The lender's do not want to pay or play!
So what do,You do?
Recruit first-time buyers,With the access too tax credit and Focus on lenders that have some kind of REASON in they're idea of business...That still can speculate!
Invest in yourself!
As far as the IRS goes, it can not be used as a down payment. You have to actually close on the deal before filing your taxes to get the credit. Be aware that you must buy this home before December 1, 2009. You may amend your 2008 tax return to receive your money or you can wait and request the credit on your 2009 tax return. Also, if you amend your return to get it this year, let it be known that you will have to pay for return to be filed (unless you do them yourself or have a friend), send it thru snail mail (no electronic filing for this, yet) and wait approx 16-20 wks. I have 18 yrs exp in personal and small business tax returns and will be glad to answer any questions I can for you.
Your DG friend,
Brian
Brian thanks for your help and I am sure we will be asking you some questions since you have an experience with tax returns. Good Luck !!
Warm regards,
Paul T. La Moy
Brian, I did read something to that effect some time ago. Rest assured there will be some more tax credit questions coming. Thanks for clarifying.
Sandra
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"In all things, wait on the Lord."
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No problem. I will be glad to answer any tax questions that you all have.
Thank you for the feedback, it is much appreciated!
-Mike Hutchins
Thank you for the clarification! Very informative indeed, the insight is much appreciated!
-Mike Hutchins
I apologize for not responding to these postings before now, I have been in training with my Army NG Unit for the past few days. I do much appreciate the responses tho!
Thanks DG fam! Your information, insight, responses, etc. are ALWAYS much appreciated!
-Mike Hutchins
if you want more info on the tax credit go to the nar website....national association of realtors