You're eligible for the tax credit regardless of financing as long as you're a first time buyer. However, if you want to use the tax credit to increase your downpayment, that's only for FHA loans. Although as Phil stated below, the state of FL now has a program in place regardless. The state program is a big help since most lenders are not set up or don't want to take the risk of lending the money out for the tax credit.

Hi FLG,
Here is a link to the Form 5405 that is used to claim your First Time Home Buyer Tax Credit. No where on this form that contains what qualifies and what doesn't qualify does it state the type of loan necessary to be able to utilize this form. However the credit maximum is 8K based on 10% of the purchase price of the home. Joint filers can only have a max income of 150K and singles 75K. The purchase must be prior to 12/1/09 and you must live in the residence at least 36 months so you don't have to repay the credit. Another interesting stipulation is that you may not purchase the residence from a relative. Hope this helps you. Let me know if I can assist you in shopping this market. http://www.swfloridahomebuyer.listingbook.com

http://www.irs.gov/pub/irs-pdf/f5405.pdf

Sarah Garrett, Realtor
ALLIANCE REALTY GROUP
"Chosen Best in Client Satisfaction 2006-2009"
By Gulfshore Life Magazine
sarahgarrett@argfl.com
239-464-8620

F,

Effective today, the state of Florida created a program to help buyers receive that tax credit early and utilize it for down payment assistance. The Florida Homebuyer Opportunity Program (FLHOP) provides a bridge loan to buyers to utilize towards down payment or closing costs until they receive their tax refund from the government.

The FHA has a similar program with one MAJOR difference, the buyer still needs to come up with the 3.5% down payment.

The good news is the money from the state of Florida is expected to be available in early August. To find out more about the funding of the tax credit and other valuable information, click link below:

http://www.floridarealtors.org/NewsAndEvents/n1-070109.cfm

It is not easy to keep up with.

Phil Moody
904-982-3373

The tax credit IS only for FHA loans. I've had a lot of clients ask about that and I haven't had any luck so far in finding a lender that's a) set up to do it yet and b) willing to take the risk of losing up to 8k. You wouldn't be able to use it for a USDA loan at all and like Tim pointed out, better to keep that money in your pocket or use it for something your new home may need. USDA is 100% financing so there is no downpayment requirement.

Please make sure your loan officer explains the loan thoroughly to you. If you aren't sure about something, keep asking until it makes sense. You should also be able to ask your Realtor for a little help with that as well.

I wish you the best! Happy house hunting!

Danielle Sharp
Broker Assoc
Vadala Realty

Cell 248.207.4445
sharphomes@yahoo.com

Is it possible.....yes...but to my understanding its just for FHA and it is very lengthy and confusing....if you are going USDA then you wouldnt need it for down payment anyways...better to just put the money in your pocket=)


Tim Copenhaver
Mortgage Specialist
First Capital Lending Corp.
3848 Colonial Blvd.
Ft. Myers, Fl. 33966
800-572-8520 (Toll Free)
239-277-9244 (Office)
239-265-1084 (Cell)

The First-Time Homebuyer Tax Credit is for the purchase of a primary residence. So I think I would ask your Lender and Realtor who is representing you to see if that loan and property qualify. Below is the link to what the guidelines are for the tax credit.