If you have been considering taking advantage of this tax credit, you need to act now. This tax credit is only available if you close by December 1, 2009. Now it is possible to use this money upfront at closing rather than wait for the credit. This is possible through a bridge loan. While it is a great idea, it is not as easy as one thinks. First off, you still have to come up with your downpayment, but can use the money to add to your downpayment. But many banks are not willing to do these types of loans because they show as personal loans, and not mortgages.
One of my buyers was trying to use this upfront, but the lender didn’t even know how to do it.