HR 3221 - Great for Buyers between April 8, 2008 and July 1, 2009

Housing & Economic Recovery Act of 2008:

$7500 tax credit from Federal Govt for all qualifed first time homebuyers purchasing between 4-08-08 & 07-01-09.
Income limits: $150,000 married: $75,000 single but gets phased out if income is higher
15 year loan at 0% interest where you get the cash up-front.
You pay back the $7,500 over 15 years at $500 per year: interest free.
Not all information you hear is negative. The bottom line is that you dont' want to follow the herd.

People get rich in this country because they don't follow conventional wisdom.  I believe buying a home right now is a great time for many and here is one more reason why. 

  • August 11 2008 - US
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Answers (8)

Profile picture for Loan.Ed

Thanks for the info Mike

  • August 11 2008
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Mike.

 

Thanks for the info. However, they will just make something else next year. Until the overglut of inventory is tamed back, and even a few years after that.

 

Buying a house in areas that have stabilized and never went thru skyrocketing appreciation in the first place is a good bet.

 

But other areas ? Not so much yet...............

  • August 11 2008
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Profile picture for jludwi2

Catcihng a falling knife is hard.

 

In other words, if you wait for the glut to stabilize, it's possible that the perception of falling prices will have turned BEFORE that.  Of course, it's possible they won't.    Most people shouldn't normally be all that concerned (on housing) of catching the absolute bottom either way.  I think what you were implying was the downside is still a greater chance the upside from here, and on that, I agree.  But come January of Next Year, people might have a different outlook. 

 

  • August 13 2008
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Profile picture for John Paunan

So really just an interest free loan from the Feds, but, heck, we'll take it!

  • August 13 2008
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Profile picture for Academy Mortgage AZ
The $7500.00 tax credit is great for first time home buyers. John is right on Interest FREE loan. Most first time home buyers end up buying new things for their home on credit, furniture at high interest rates. This is a great way for first time home buyers to manage new debt with no interest or pay off some debt once they received the tax credit.

You can also use this as a tool to show people how to save buy adjusting their income tax with holdings on their pay check during the building process on a new build or the home search process.

It is about time we see some positive improvements for first time home buyers.
  • August 13 2008
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My main issue with it is that it is simply more debt "masked" in the form of a credit. There are 0% loans for Suburbans, too. How about something real.. How about real education, real qualification and perhaps a real gift if a 1st time buyer is ready.. They are not ready with 0% down and a job with no reserves.. That is how you buy your rims on your SUV...  Balance and a little less leverage is what 1st time buyers need.  This is a sham and look at your own comments... use this as a tool.....  Tools and fools use tools to show people by numerical trickeration for a sale..   "Uh, Mr. Lamb, welcome to SNAP-ON Mortgage, the home of the tools.... literally... Here is a tool to show you how you get a $7500 CREDIT.. Yes, WE PAY YOU TO BUY A HOME...  Let me show you how the tool works.. take the sales price, carry the 4... divide by your tax margin rate versus the EURO overnight exchange rate. The sum of that is parlayed with our extend home warranty and LIBOR INDEX fund.  Confused,, Nonsense..  If you ahve any questions, just ask for me.." 

  • August 14 2008
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Profile picture for Chris Corica

MW is right on the money as usual. We are a country living on credit and building more debt and we mask that by thinking of new and creative ways to not call it what it is. The mortgage market was the first area to be exposed with this but I feel it is small in comparison to what things will be like once the credit card crisis kicks in. I would love to know how much debt we have floating around that gets transferred to a new "zero" interest rate card every 6-12 months. Eventually we need to change our ways and it doesnt involve getting another loan. There is a different concept called actually using money to buy the things we want or need in life. If you cant afford them you try another oldie but goodie called saving up. How novel?

  • August 14 2008
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Profile picture for Chris Corica

  • August 14 2008
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