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Replies (7)
- highspeedranger
- Contributions:6
2) credit score- 620, 640,680, etc.
I didn't bother asking the Real Estate Agent,
Mortgage Broker said- the 1 past due payment that is 3-4 years old in not a problem, continue to pay current and check back with him in 6 months, (he pulled my credit and didn't offer any programs that would help me, which I know I am eligible)
( Its been six months, and I reduced my debt about 3k, but still have not seen my credit scores go up more then 5 points. (TU 679, XPN 675, EFX 655)
The Homeownership Counselor that I am working with told me to pay the card that is over the 30% utilization.? I have a 1.9% bal transfer locked in for the life of that bal transfer, she told me to pay that and not the card with 9% or 14%. She also told me that FHA would not go for any score lower then 680, which then I asked, huh?
I thought FHA didn't have a set level and the bank had the final option?
One last question, why on any given day I can get my credit checked, via myfico, or through other free or cost based services, why is it different even from the same agency ie. Transunion?
whew... and thanks,
highspeedranger
I didn't bother asking the Real Estate Agent,
Mortgage Broker said- the 1 past due payment that is 3-4 years old in not a problem, continue to pay current and check back with him in 6 months, (he pulled my credit and didn't offer any programs that would help me, which I know I am eligible)
( Its been six months, and I reduced my debt about 3k, but still have not seen my credit scores go up more then 5 points. (TU 679, XPN 675, EFX 655)
The Homeownership Counselor that I am working with told me to pay the card that is over the 30% utilization.? I have a 1.9% bal transfer locked in for the life of that bal transfer, she told me to pay that and not the card with 9% or 14%. She also told me that FHA would not go for any score lower then 680, which then I asked, huh?
I thought FHA didn't have a set level and the bank had the final option?
One last question, why on any given day I can get my credit checked, via myfico, or through other free or cost based services, why is it different even from the same agency ie. Transunion?
whew... and thanks,
highspeedranger
- Howard "Bucky" Buchanan, "BuckyBuchanan"
- Contributions:31
Well, not sure if this will help or not, but I always recommend to my clients that you ask a trusted tax advisor, when you have specific tax questions. As your Realtor, I don't have the expertise or knowledge of tax codes, nor the necessary training & licenses, to give you that advise. What I will say is that I 100% agree with your frustrations based on what I see in the responses you have gotten. Most of my clients have been advised that the Tax Credit may not be used towards down payment or closing costs, and that they must take possession (close) by December 1, 2009 to take advantage of the CURRENT Tax Credit. And yes, there are several ways, depending on when you closed, on how you can get the credit, so some of the answers may not be wrong, but might not be right based on your individual situation. As with any tax issue, is that clear as mudd now for you? Long and short, don't loose out on this terrific opportunity to get free money (unlike last years "loan", which may need to be repaid), and get your house purchased and CLOSED by the current deadline, December 1, 2009!
- Michael Emery, "MikeEmery"
- Contributions:7298
I'll answer the first set of questions and leave the finance questions to the financial gurus.
To claim the credit, you will need to close on a home by December 01 2009. This doesn't mean you put a home under contract by Dec 1, it means you close on the home by that date (take possession).
Once you have closed on the home, you can either file an amended 2008 return (along with form 5405) or you can claim the credit along with your 2009 return (with the 2009 version of the 5405 which is not yet online). Whichever year you made less money is the year you would file the credit (assuming you have exceeded the 75k adjusted gross income for single taxpayers or 150k for married taxpayers) If you made less than 75k this year or last, it's irrelevant. There is no additional form to claim the credit UNLESS you are filing an amended 1040 return for 2008. I believe it's a 1040x. But your tax preparer can help you with an amended form.
If you feel you will have a big tax bill for 2009, you might want to wait and file for the credit next year. Otherwise file for the credit once you close and the IRS will send you a check for UP TO $8,000 (10 percent of the purchase price up to 8k).
There was some talk about getting the 8k early (as a loan) to defray the cost of FHA mortgage closing costs, but from what I hear, no lender is doing that program. (If I am wrong, the financial people will tell me!) There are some state programs that allow you to draw against the 8k for closing costs.
Lastly, read the IRS.gov link thoroughly to make sure you qualify for the program. There are specific rules that you must follow to ensure that you qualify and that you won't have to repay the 8k back to the IRS in the future.
And send the link to the IRS site to the home ownership counselor.
http://www.irs.gov/newsroom/article/0,,id=206291,00.html
To claim the credit, you will need to close on a home by December 01 2009. This doesn't mean you put a home under contract by Dec 1, it means you close on the home by that date (take possession).
Once you have closed on the home, you can either file an amended 2008 return (along with form 5405) or you can claim the credit along with your 2009 return (with the 2009 version of the 5405 which is not yet online). Whichever year you made less money is the year you would file the credit (assuming you have exceeded the 75k adjusted gross income for single taxpayers or 150k for married taxpayers) If you made less than 75k this year or last, it's irrelevant. There is no additional form to claim the credit UNLESS you are filing an amended 1040 return for 2008. I believe it's a 1040x. But your tax preparer can help you with an amended form.
If you feel you will have a big tax bill for 2009, you might want to wait and file for the credit next year. Otherwise file for the credit once you close and the IRS will send you a check for UP TO $8,000 (10 percent of the purchase price up to 8k).
There was some talk about getting the 8k early (as a loan) to defray the cost of FHA mortgage closing costs, but from what I hear, no lender is doing that program. (If I am wrong, the financial people will tell me!) There are some state programs that allow you to draw against the 8k for closing costs.
Lastly, read the IRS.gov link thoroughly to make sure you qualify for the program. There are specific rules that you must follow to ensure that you qualify and that you won't have to repay the 8k back to the IRS in the future.
And send the link to the IRS site to the home ownership counselor.
http://www.irs.gov/newsroom/article/0,,id=206291,00.html
- Pasadenan
- Contributions:21466
The IRS website is correct and some of the people you asked are giving last year's information, which is different than this year.
I recomend calling the IRS; the call is free, and they aren't as busy right now as there is no deadline this week. I believe they still answer the line around the clock, and they can answer all your questions including what form to use, and how one would apply it to a down payment if that was their choice. Just make sure you give them all the relivant information as there are reasons people don't qualify...
IRS: 1(800)829-1040
I recomend calling the IRS; the call is free, and they aren't as busy right now as there is no deadline this week. I believe they still answer the line around the clock, and they can answer all your questions including what form to use, and how one would apply it to a down payment if that was their choice. Just make sure you give them all the relivant information as there are reasons people don't qualify...
IRS: 1(800)829-1040
- highspeedranger
- Contributions:6
Thanks for the great responses. I didn't realize that the IRS updated the Q and A. I did see that some states were lending a portion as a down payment, but I did not find any thing for Delaware.
- Maria Morton, "MariaMorton"
- Contributions:716
To use the Tax Credit, you must close before Dec 1, 2009. That means on or before Nov. 30.
In Missouri, there is a way to use it for Downpayment and/or Closing Costs; other states have been thinking about doing this but most will not have the programs/products in place to be of use.
To qualify, you must not have owned your primary residence for the last three years. (First Time Homebuyer defined per Federal Regs)
Your income must be less than $75,000 ($150,000 combined)
You must Close on or before Nov. 30.
You need to allow 45 days to close if you are financing FHA. (and some VA and Conventional)
You get the money when you file. Either on next year's return or you can file an amended return this year.
If you are not getting the help you need, find another realtor and ask for their help in getting you to the right lender and into the right home before the deadline. Sundays and holidays do not count so you should have your home selected, mortgage in place and final contract signed by all parties by Oct 16.
In Missouri, there is a way to use it for Downpayment and/or Closing Costs; other states have been thinking about doing this but most will not have the programs/products in place to be of use.
To qualify, you must not have owned your primary residence for the last three years. (First Time Homebuyer defined per Federal Regs)
Your income must be less than $75,000 ($150,000 combined)
You must Close on or before Nov. 30.
You need to allow 45 days to close if you are financing FHA. (and some VA and Conventional)
You get the money when you file. Either on next year's return or you can file an amended return this year.
If you are not getting the help you need, find another realtor and ask for their help in getting you to the right lender and into the right home before the deadline. Sundays and holidays do not count so you should have your home selected, mortgage in place and final contract signed by all parties by Oct 16.
- Pasadenan
- Contributions:21466
The credit advisor is CRAZY if they suggest paying a 1.9% interest off before paying off a 14% interest. Sure, high utilization makes some difference, but 30% is not typically high utilization. What makes the most difference is how quickly you pay, how often you are late, how quickly you get lates removed from the records, and how much above minimums you pay. Anyone can get their scores up to 800 simply by keeping their debt to income ratio low, their debt to asset ratio low, their debt to available credit low, their available credit to income low, their debt to asset ratio low, and by paying extremely promptly.
Why can't I get a consistent answer from anyone?
Why? If they are there to help, and/ or sell a product to me, why do I get the run around?
Please help clarify some questions.
1) Tax Credit for first time homebuyers.?
IRS website says - Close by Dec 1, and file or amend. get 10% up to 8000.
not a deduction.
Homeownership counselor said- close by dec 31, and its a deduction, only to be used on d/p and closing
Real Estate Agent- didn't know, said would get back with me but after 60 days no return email or phone call, (I don't think he/she has earned my business)
Mortage Broker said- 'Can Not be used as a d/p or closing cost. have to file a differnet form in addition to the IRS Form F5405 ( which does not say how I am to use the credit)
-Which is it? I would like to believe the IRS, and HUD but neither are clear.
whew... and thanks,
highspeedranger
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