They just passed it so you CAN use a percentage of your tax credit towards the down payment/closing costs, however they have yet to figure out who will be paying for that. The bank or the government so technically you can’t count on it yet. We are having the same questions right now because I really don’t want to pay $6,000 in closing costs so we are trying to get the bank to pay them but who knows. If they finally figure it out before you close you can always put more for your down payment but you should check with your realtor or mortgage broker to know exactly how much you can count on and what progress if any they are making to figure it all out.

No. You do not get the first time buyers credit until you get your tax return. The First time home buyers credit is %10 of the principle of the house up to $8000 dollars. You cannot use the first time home buyers credit for closing costs, or a down payment because you do not get the money until tax return time.

In some cases you can get a loan against the credit and use the loan proceeds toward your down payment – the loan would be paid back by the money you get from the credit as soon as you get it. You can’t apply for the credit until you have actually closed on the house.

But if the promotion requires $100 down, that would almost surely have to be your money, not part of a loan.

Be careful that you can really afford what you are buying. People being given loans they can’t afford is what got the country into the financial mess it’s in, and with these loans against the credit we’re in danger of doing the same thing again.