Time Frame for $8000 Tax Credit

[kcoett]

I've read about this and I'm still a little confused:  I'm looking to have a home built later this year - however, it won't be finished till 2010.  Do I still qualify for this tax credit?  I've had people say that whenever you "close" on the loan you can file for the credit.  What exactly does "close" mean and do I have to be living in the house to close on the mortgage?

I appreciate your feedback.

[Anonymous]

The closing is when you sign all the paperwork for the mortage, it is funded, and the sellers, in your case builder, receives the money from the sale of your house, you then receive the keys and can move into your home.  From the little I have heard about building a house, you won't close on your mortgage until after the house is built.  So if the house won't be done until 2010, then you're not going to close until after the house is built, which means you won't get the $8K tax credit, because you have to close before you can claim the credit.  To be able to claim the credit you need to close no later than 11/30/09