Make the Home Buyer Tax Credit More Easily Available at Closing

The first-time home buyer’s tax credit cannot be directly used for down payment at the closing table due to federal tax law. In order to claim tax credit, one must meet certain criteria. Since the first-time home buyer tax credit eligibility is contingent upon acquiring the home.It is impossible for one to receive the credit directly before closing on the home. However, it is not impossible to leverage the anticipated credit for down payment assistance.
The principal way to use the anticipated credit for a down payment is through a bridge loan secured from a state housing finance agency (HFA) or other eligible agency.The HFA gives the bridge loan at closing and the buyer promises to repay.