Can I use the Tax Credit for Closing Cost?

If So, How? I am getting a USDA Loan (financed through Wells Fargo) I have been told Yes by individuals and Yes, but No by my broker. He says that technically you can, but no one knows how to actually do it yet.

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  • 1 decade ago
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    A few states have programs to monetize the credit as a bridge loan so that you can use it for down payment or closing costs. Any Realtor or lender in your state would know how that works if such a program is available. If anyone is telling you 'Yes' but isn't handing you the application paperwork they're probably just blowing smoke or speaking on rumor.

    Other than that, there is no way to get the money up front from the IRS since it will only be paid to you AFTER you close. On top of that, processing time for payment by the IRS is running about 4 months right now so you'll need to find some other source of funds to close.

  • 1 decade ago

    You cannot use the credit for closing costs unless you get an FHA loan. A loan through Wells Fargo will not qualify. Just borrow the money now and wait for the $800 credit come tax time.

  • 1 decade ago

    yea you receive the money from the IRS as long as you don't owe them. And no you can't use it for closing. You will receive it 6-12 weeks after filing an addendum to your 2008 tax return which you can only do after your closing date.

    Source(s): just bought a house
  • Anonymous
    1 decade ago

    Not from the IRS.

    Supposedly a few states were offering to "monetize" the FTHB credit so you could use the money for closing, but your broker should already know if you are in one of those states.

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  • Anonymous
    1 decade ago

    Its a TAX credit that you take off income taxes its not money you receive from anyone

  • Anonymous
    1 decade ago

    To my knowledge, no. The tax credit won't come until you file your taxes.

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