Can I use a construction loan for the First-Time Homebuyer Credit?

August 10, 2011

From:  Kaulana
Date:  10 Jul 2009

I am getting a construction loan. Can I use it for the First-Time Homebuyer Credit? If I don’t have permanent financing in place but I occupy the home before December 1, 2009, will I still qualify for the credit?


Date:  31 Aug 2009

Hello Kaulana,

There is no language relating to financing in the law relating to the First-Time Homebuyer Credit. As long as you occupy the house before December 1, 2009 and you otherwise qualify (no phase out for income, no principal residence for the three-year period before the purchase, etc.), you should be able to claim the credit.

The purchase price is the tax basis or cost accumulated up to the date the residence is purchased, which is the date you occupy the residence when you construct the residence yourself.

See the article at

Good luck!
Mike Gray

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