What is really involved with using the $8,000 tax credit as down payment over the minimum required from my own funds, or using it towards closing costs or interest rate buy down?
Essentially, you will be taking a “bridge” loan from state-approved Housing Finance Agencies HFA. The $8,000 will not be coming from the IRS directly. You will still have to apply and qualify for the bridge loan. This loan may or may not be interest-free. You will have to check with the individual HFA lender. The other option is to obtain a bridge loan from a non-profit organization.
Related Questions
- What is really involved with using the $8,000 tax credit as down payment over the minimum required from my own funds, or using it towards closing costs or interest rate buy down?
- Can the $8000 tax credit be used for down payment assistance and closing costs?
- What minimum down payment is needed to buy a home?
