$8,000 Tax credit, can it be used for closing costs?

Realtors and borrowers still regularly ask me about using the Federal FTHB tax credit for their down payment or closing costs. When potential home buyers are searching the internet on this topic, they are usually finding this info on the Fannie Mae website. I had one of my pre-approved clients come to my office with a bunch of printed out information on how they can get the tax credit money upfront and use it for closing costs and/or down payment. All of the printouts I reviewed came from other states but NOT California. It appears that 15 states are offering the credit upfront through HUD approved organizations that charge an affordable fee for doing so but California is not one of the states offering this.

Here is a link to the Fannie Mae website

http://www.fanniemae.com/homepath/incentive/index.jhtml

When I asked Fannie where one could get this money to use as their down payment, they gave me this website

http://www.ncsha.org/section.cfm/3/34/2920 (not sure why they don't put it on their website).

I hope that you find this information helpful and if you have any questions just give me a call.