$8000 Tax Credit Extended Through April 30, 2010

By: Diane Tuman, Zillow Content Manager | November 6, 2009

In what has been urged as a must-have by real estate professionals and builders, the $8000 tax credit for first-time home buyers (previously due to expire Nov. 30), has been extended through April 30, 2010, according to the Associated Press. Not only has it been extended, but it has also been expanded to include more buyers.

Details on Tax Credit Extension:

  • $8000 tax credit for first-time homebuyers extended for buyers who sign a contract by April 30, 2010 (and who close by the end of June).
  • $6500 tax credit offered to homebuyers who have lived in their current residence at least five years and who want to “trade up” (buy a new primary residence).
  • Couples earning as much as $225,000 a year and individuals earning up to $125,000 would qualify (up from $75,000 for individuals and $150,000 for couples).
  • Tax credit not applicable for those buying homes worth more than $800,000.
  • Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.

Will the Tax Credit Extension Help?

According to a recent survey Zillow conducted through Harris Interactive, nearly one in five (18%) prospective first-time home buyers said extending the $8,000 tax credit would be the primary influence on their decision to buy a home before the end of 2010, potentially stimulating an additional 334,000 home sales. The caveat here is the survey asked first-time homebuyers if they would purchase a home prior to the end of 2010; this bill will only go through April 2010, not the end of 2010 and it involves a different type of buyer, as well.

The cost for the tax credit extension is estimated to be $10 billion and opinions vary on whether it will actually help the economy or not. One writer provides 5 reasons the U.S. should stop homebuyer perks.

What do you think of the tax credit extension? Good or bad?  Jump into Zillow Advice and take part in discussions on the tax credit extension.

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Comments

152 Comments so far

  1. MiamiCondoShop on November 6, 2009 11:39 am

    Was there any doubt that the tax credit wouldn’t be renewed. The current administration is determined to prop up the housing market as much as they can. I don’t agree with the extension, as it won’t spur as many people to buy new homes the second time around. The govt will end up subsidizing a large proportion of people who would have bought a property anyway. Esp, the “step up” buyers. Is a $6,500 credit going to be the motivating factor for buying a $500,000 home?

  2. Movoto Real Estate on November 6, 2009 12:20 pm

    It’s finally signed! The tax credit is definitely a source of commotion in the real estate market across all of the major residential real estate markets for both buyers and real estate agents.

    A local snapshot of two Oregon markets saw saturation of distressed properties that have been consistent in Portland and Eugene. Portland’s distressed properties stayed at 6% from October to November 1, 2009 and Eugene at 3%. There were also a large number of reductions in listing prices in both areas in the same time period. Perhaps the tax credit extension and inclusion of a higher number of homebuyers will add additional incentive. More on the tax credit in our blog @ http://www.realestateandhomes.blogspot.com

  3. Brandon on November 6, 2009 12:25 pm

    Quit stealing our tax money to fail to prop up ponzi-scheme pricing!

    Idiots, every last one of them. If they REALLY wanted a stable and secure housing market, they’d disband Freddie, Fannie, HUD, and FHA. Then creditworthiness and a large downpayment would shield the housing market from most turmoil.

  4. DebtFree on November 6, 2009 12:28 pm

    Even the handout-friendly NY Times is against this govt boondoggle:

    nytimes.com/2009/11/06/opinion/06fri2.html

    A Bad Way to Spend Money

    November 5, 2009

    Congress threw good money after bad this week when it voted to extend and expand a wasteful home buyer’s tax credit set to expire at the end of the month.

    The new program, which will continue through the spring, is being portrayed as a rescue plan for the ailing housing market. But this costly giveaway to the real estate and mortgage industry will spend far more in taxpayers’ dollars than it can ever deliver in economic benefit. As happened with the cash-for-clunkers program in the automobile industry, the program will make housing look momentarily better but is unlikely to contribute to long-term recovery.

    Between 80 percent and 90 percent of the people who have bought homes using the [prior $8K] credit would have purchased those homes without it. To put it another way, the tax credit has been wasteful spending, not stimulus spending.

  5. Fred on November 6, 2009 12:30 pm

    When does this go into effect for the $6500 credit? We just bought a house last week. Would we qualify?

  6. violetta on November 6, 2009 12:43 pm

    For the purchaser who is already in contract and was trying to live by the Nov 30 deadline, does this enable him to close on say Dec 4 and still get the previously promised $8000 tax credit? Or will this newly extended credit be only for people who execute new contracts?

  7. Zillow Starts Charging for Mortgage Leads-- rentBits Rental Marketing Blog on November 6, 2009 12:44 pm

    [...] lead generation is a very large market and the recent tax credit extension will only increase demand for mortgages in the near future. Social [...]

  8. Imran on November 6, 2009 1:05 pm

    So I sold my apartment in 2008 october and buying a house now which should close end of this month. Between last october and now we have been living in rental Before that i owned my apartment for almost 3 years.
    Are we eligible for any tax credit?

  9. Stephanie on November 6, 2009 1:05 pm

    Why are they penalizing someone who bought their home in July 2008, which I did? Seems like everyone is getting a credit except me i.e. homeowners who have “lived in their home the past 5 out of 8 years”???? This does not make sense to me????

  10. Regina on November 6, 2009 1:18 pm

    Thank God! We’re waiting on a pre-foreclosure/short sale, and it’s taking FOREVER! I never thought we’d get lucky enough to get the tax credit, as we didn’t think we’d close on time! But thank goodness we will!!

  11. Bob on November 6, 2009 1:24 pm

    I just bought a house last week and lived in my previous home for 4 years and 51 weeks! Would I be able to qualify for the $6,500 credit?? I would hope that I am close enough to the 5 years to get the credit!!

  12. Michael on November 6, 2009 1:27 pm

    I own a co-op back east from 1996 to Oct of 2009 we move to Vegas and bought a house in Jan of 2010 would I be elegible for the 6500 tax credit

    thnks

  13. Dixie McCully on November 6, 2009 1:28 pm

    What if I am selling my home and downsizing to a smaller one…will I still qualify for the $6500 tax credit

  14. Michael on November 6, 2009 1:31 pm

    Simple questions I’d like to have answered - How does artifically creating demand in the housing sector impact us 1, 2, 5 years from now? Doesn’t this policy create a housing bubble? Wasn’t one of our problems the result of a housing bubble that popped? With consumer wages and unemployment creating downward pressure in the economy, doesn’t this policy actually inflate housing prices and make it even more unaffordable for people to purchase? How will we fund the $10 billion pricetag of this policy? Will the $10 billion dollars be financed by additional U.S. Treasuries sold to China or other countries? How does this make us more secure?

    Anyone care to respond? Were these questions part of the debate on the floor of congress before it was approved?

  15. Emil Blatz on November 6, 2009 1:45 pm

    I owned a home in GA until August 2007, so my wife and I, currently renting, cannot take advantage of this kind of program until 3 years have lapsed, by which time the program is over. But, if we bought, titled the property in our names and granted a life estate to my parents (who have lived in their home for the last 30+ years, and have no genuine desire to sell either of their present homes), it would appear that they could get a $6500 tax credit. How much sense does that make?

  16. Houston Homes For Sale on November 6, 2009 1:55 pm

    I really do not see the tax credit helping much with the housing market in the long run. What this credit does is it pushes buyers looking to buy next year or in 2011 into buying early. When the feds let this program expire we will see a substantial drop in sales because the ready willing and able buyers will have already bought in an effort to obtain their bribe (Tax Credit).

    A big part of me wishes that they would have put this money else were. Like into replacing our worn out electric infrastructure. As programs such as that would add jobs put money into the economy and position us to be more competitive in the future as a nation on the world stage. All this credit does is give a few people some extra money to consumer items that will bring no future value to the country.

  17. Naomi on November 6, 2009 2:08 pm

    I wonder if they have thought about military in this bill. Of a soldiers has to PCS before three years and are forced to sell their home do they have to pay back the credit?

  18. MILDRED OLIVERA on November 6, 2009 2:09 pm

    HI,

    I HAVE TWO HOUSES, ONE IS A RENTAL AND THE OTHER ONE IS THE ONE I LIVE, THE ONE I LIVE I BEEN THERE FOR FIVE YEARS. I BOUGHT THIS HOUSE ON 2005. A IM ENTITLED TO ANY TAX CREDIT?

    THANK YOU

    MILDRED

  19. TERESA on November 6, 2009 2:27 pm

    We purchased a home that closed in March 2009, do you know if this tax credit will be retroactive? We did not qualify under the original terms, but I believe we will now.

    What do you think?

  20. patrik on November 6, 2009 2:32 pm

    It’s a great deal if you live in Detroit, where the median home price is $7,000. (And I’m not being hyperbolic.)

    Here in the San Francisco Bay Area, that might cover the emergency room visit after we go into shock after seeing a $600,000 asking price for a studio in Pacific Heights.

  21. William Pentorn on November 6, 2009 2:41 pm

    The 6500.Tax Credit, is for buying another home not for the home you live in YES or NO

  22. JC on November 6, 2009 2:44 pm

    So I was planning to relocate in the May/June time-frame and buy a house in the 600-700k range.

    I will absolutely take the free check for $6500 on the “Ron Paul” principle - this is an absolute travesty of government largess, but if tax dollars are going to be spent I will be taking as much of it as possible.

    This will NOT help the economy, it will be another small notch in the growing belt toward banana republic currency. I will continue to enjoy my upper-middle class lifestyle while the people who are not as fortunate as me continue to suffer from a dying economy and keep chanting Yes We Can - now you can take that Change and stuff it in your Hope chest

  23. Rebecca on November 6, 2009 2:53 pm

    Time sensitive question: we did not qualify for the original credit because our income level was just barely above the cap. Now with raise on income level combined with the extension we qualify. We are already in escrow. We are scheduled to close on Nov. 25th.

    Will we get the nex tax credit or should we try to close Escow on Dec. 3rd? Does the fact that we started escrow before the original deadline disqualify us anyway? I can’t seem to find a straight answer anywher and if we need to close after Dec. 1st to qualify we have let the bank and seller know now that we need to extend our 30 day escrow.

    I’ve already contactedy Senators and no one knows

    help! Thanks.

  24. Don Wallace on November 6, 2009 2:53 pm

    More government largesse! More unintended consequences! What our legislators fail to grasp is that this program continues to put investors and potential investors at a huge disadvantage. More investor owned rental units are sitting vacant and undoubtedly many of these will end up in foreclosure as their owners are not able to service their debts. Former tenants are now becoming homeowners thanks to continued lax lending standards courtesy of the FHA, which will undoubtedly be our next big taxpayer funded bailout.

  25. jack on November 6, 2009 3:45 pm

    Already own a home, have a rental,& rent a office ! Could the purchase of a mobile home qualify for a tax credit if I bought it to use as a office ?????

  26. Colin on November 6, 2009 4:06 pm

    This whole thing pisses me off. I got a $7500 credit last year that I HAVE TO PAY BACK. I waited to buy for years, slaving away in school and saving my pennies.

    Anyone that buys this year gets to KEEP $8000???? The administration in Washington is not responsive to its voting bloc. I am very upset and am contacting my congressman.

  27. Cuong Nguyen on November 6, 2009 4:20 pm

    I owned one house in California which is now for rent.
    I retired and now live in Texas in the house that
    owned by my daughter and pay the morgage+prop.tax+insurance+maintenance+ass.fee..
    Will I entitle to 8,000 if I take over her house as a purchase?
    I lived in the house in California for 20 years up to 01-01-2009 (moved to Txas), Am I qualified for 6,500 ?

  28. d on November 6, 2009 4:46 pm

    I purchased my home 4/09. Am I eligable for any tax credit?

  29. Al on November 6, 2009 5:12 pm

    How does this work for a gay couple with combined income less than $225,000 buying in CT at $575000?

  30. Frank on November 6, 2009 5:16 pm

    Yes, to all of you asking if you qualify for some of my money. Yes, to the person who didn’t quite live in the house for 5 yrs. Yes, to the person who just wants the money for living in his house for more than 5 years. Yes, on both credits to the person who is paying the daughter’s bills but doesn’t really own the home…
    Yes, to all of you :)
    You all crack me up

  31. Frank on November 6, 2009 5:30 pm

    To “D”….no
    To “Al”…no
    To “Cuong”…no
    To “Jack”…no
    To “Rebecca”…no
    To “William” yes
    To “Teresa”…no
    To “Mildred”…no

    Why do you people keep looking for handouts? Wake up!!!!!

  32. mary c. on November 6, 2009 7:15 pm

    don’t blame hud, fanny, freddy and fha. what about the real estate agents who would give you a credit info form to fill out saying “we do not verify employment or source of income.” why not put up a sign saying PLEASE ROB US! they knew everything would fall apart but didn’t care because they had their tails covered. and that cover helped the stock market get into trouble.

    for me this is a last chance for an old lady to buy a house on her own.

  33. rick on November 6, 2009 7:37 pm

    Just Stop It!

    Don’t buy yet, you’ll be very sorry you did.

    I just rented a $4 mil home for $8k a month, it should cost me about $40k a month in a real world %1 a month.

    We won’t hit rock bottom for a few years after they stop trying to prop things up.

  34. Obama Signs Extension & Expansion of Home Tax Credit Into Law Today « The Road Les Travels on November 6, 2009 8:14 pm

    [...] From The Big Picture Blog – Peter Boockvar  http://www.ritholtz.com/blog/2009/11/the-home-buying-tax-credit-costs-what/ ; From Zillow Blog – Diane Tuman  http://www.zillow.com/blog/8000-tax-credit-extended-through-april-30-2010/2009/11/06/ ; [...]

  35. ms k on November 6, 2009 11:01 pm

    So…what happens to those folks (like me) who got the $7000 tax credit last year but were told at the time we’d have to pay it back at $500/year, does that still stand? I mean, if people buya a home now and don’t have to pay it back, why should I? Just wondering if anyone else is in the same boat. Tax experts, please advise

  36. Linda Heck on November 6, 2009 11:11 pm

    I lived in a manufactured home for 4 years, and rented the land it was on. Would I be eligible for the tax break?
    thanks,
    Linda Heck

  37. Don on November 7, 2009 6:33 pm

    To Mary C

    The government is not helping you! FHA is financing anyone who can fog a mirror with virtually nothing down. Without current government intervention (tax credits and loose FHA lending) to support the housing market you can bet home prices would be even lower. In some markets much lower! The prudent honest folks who sat out the insanity in the most overheated markets are the ones now being deprived of the opportunity to buy their first homes at TRUE market prices.

  38. michael on November 7, 2009 11:53 pm

    im with u MS K i got the loan for 7500 dlrs and i have to repay it back im in the same boat any out there knows anything about this issue

  39. Maria on November 9, 2009 8:27 am

    Hi
    I like to know where to apply for the 6,500 tax credt if you had live in your house for more than 5 years, the anybody know?

  40. Niki on November 9, 2009 11:47 am

    What about someone like me who had a beautiful home that was worth $600,00 put $150,000 into the home making up-grades, updtaes, finishing off a basement… The property taxes went up to $16,000 a year. Husband made his transition so I decided to sell the home. I listed it for $500,000 well below, I dropped the price 5 times with in a year. Last asking price was $359,999 and Guess what? Buyer low balled me. $306,000. All the money I had I had to use it to stay in the house an extra year, pay the difference on the house I sold since I did not make one dime off the profit of the house. Down payment for the new residence…I took it because I did not want to end up another statistic in foreclosure since the stock market bit me too. I down size from an elegant 4500 square feet to 1100 square feet home. I count my blessings everday that I have a home but it would have been wonderful to get something. I was told It could not be claimed as a loss on income taxesor from the stock market. So what do people like me get to claim for a credit? Everybody got a piece of cake and I did not get a crumb.

  41. DebtFree on November 9, 2009 12:51 pm

    Niki, what makes you think the house was “worth” $600,000?

    If you had to drop the price 5 times in a year before a buyer stepped forward, the initial asking price was too high.

    Your scenario illustrates clearly that people who claim a house is a “Place to live, and not an investment” are severely misinformed.

  42. DebtFree on November 9, 2009 12:52 pm

    Beautiful comment Michael!

    Michael on November 6, 2009 1:31 pm

    Simple questions I’d like to have answered - How does artificially creating demand in the housing sector impact us 1, 2, 5 years from now? Doesn’t this policy create a housing bubble? Wasn’t one of our problems the result of a housing bubble that popped? With consumer wages and unemployment creating downward pressure in the economy, doesn’t this policy actually inflate housing prices and make it even more unaffordable for people to purchase? How will we fund the $10 billion price tag of this policy? Will the $10 billion dollars be financed by additional U.S. Treasuries sold to China or other countries? How does this make us more secure?

    Anyone care to respond? Were these questions part of the debate on the floor of congress before it was approved?

  43. mdiaz on November 9, 2009 1:24 pm

    What the gov’t should have done is to lower int. rates for current home owners. I think the gov’t is not thinking that smart, instead they are thinkign stupid. Current homeowners will save int. and they will buy rather than livign with their hight int. rate. Stupid American People!

  44. klarek on November 9, 2009 1:31 pm

    This is awful. Make these credits STOP! Propping up the housing market temporarily will just trap more new homeowners underwater and cost the taxpayers billions. There is NO economic justification for this, at all. This is a gift to the real estate industry who lobbied hard for it to boost their commissions. It’s gut-wrenching.

  45. Dan Balke on November 9, 2009 1:39 pm

    At this point, these give away programs are not going to have much of an effect as the Obama administration thinks. What needs to be addressed is the constant loss of jobs. Without a job or a steady stream of income, the common individual wouldn’t even qualify for a home loan.

    Therefore, foreclosure problem in the United States is getting worse. Research by economists at the Boston Fed has shown that two events typically lead homeowners to default on their mortgage, hence the so-called “double trigger” theory of foreclosure. First, the value of the house must be less than the value of the mortgage (”under water”). Second, homeowners must experience a significant disruption and loss of income.

  46. Mary on November 9, 2009 2:22 pm

    Again, a tax credit that only helps a few. Though good, doesn’t help those who are in the middle and “just making” it. Those who are responsible are not getting help. I know several people who have deliberately gone into foreclosure to get help, because that is the only option.

    Sucks to be responsible. There is no help or reward for that… Lets keep rewarding those who are destroying our economy.

  47. Tina on November 9, 2009 2:33 pm

    I have a house that’s been on the market for over a year in a neighborhood where people used to put letters in our mailbox begging us to sell our home just 18 months ago! So I’m thrilled that it now extends to people who have been in their homes for five years, because that segment of the market needed to be stimulated as well. It doesn’t bother me for the government to stimulate the market and give us opportunity—-what we do with it is up to us, and is a reflection of our skills as businessmen and businesswomen. America IS the land of opportunity, remember? Sometimes it needs a push, just like an old car. I do have a question, though—-in order to get the $6500 do you have to turn around and buy a house that costs more than the one you’re presently living in? We want to buy down now that our daughters are older, but the credit sure would come in handy after all the expenses of putting them through college!!

  48. Shawn on November 9, 2009 2:45 pm

    We closed on our home on December 19, 2007. A few months short of the start of this program. If anything, I payed more for my home in December than someone who bought a few months later (as the market declined)! Where’s my credit?

  49. David on November 9, 2009 2:57 pm

    Nobody is giving out any details on these credits on any websites, just blabbering how it’s wonderful and great, hoping everyone will rush to buy a home. But if nobody is working, how are they going to get a mortgage. And if someone is buying all cash to size-down instead of size-up, trying to economize, then how do we even know someone will get a credit at all.

    And if it’s a credit on the income tax form and not a rebate check, what good will it do for someone not working and no tax to credit it against - won’t do much good there.

    It sounds like more feel-good government hype and the real estate people picked up on it, like whoopie, everyone gets a credit - but I am thinking most people won’t or else one will try and then get a credit, not a rebate, and no tax to apply it against because of not working.

    I wish someone would spell it out, in black and white, what’s going on. So far the last two days all I’ve seen is generalized hype, with no details.

    It sounds like one of those buy-now ads in the newspaper for something without the fine print, but when you read the fine print there’s 300 restrictions as to why it won’t work out for some people.

    Also, wasn’t the $8K credit already subject to a lot of abuse this year - going to infants, multiple buyers, things like that. If so, then I imagine the $6,500 one is just more of the same, investors claiming to be owner occupants, things like that, are going to occur.

    But nobody cares - as long as it feels and sounds good - whooopie!

  50. Thomas on November 9, 2009 3:13 pm

    I live in CA. The worst possible place you could buy a house.
    I bought in 2004 For $437k had $125k down and lived there for 3 and a half years. I was dumb to jump on the house because this is when the Banks were manipulating the market to drive prices up. Well 3 and a half years later I sold for $550k. Sounds good hah??? Think again, it took over $100k in improvemts to sell at that price. In the end I only got half of my downpayment back. Quick Math.
    $125K Cash in 2004 and barely $58k in 2007.
    What a freaking LOSS.
    Thanks BANKS, I did everything right, where is my BAILOUT. The only ones that made out were the Banks and the ones that took all the Money they could and WALKED. I should have done that I guess.
    But HEY I still have great CREDIT. Can’t afford to buy anything nor have enough for a down payment in the NOW BANKS NEW!!!! LOAN SHARK practices.
    What a FREKING MESS these BANKS made.
    PLEASE STOP FEEDING THESE BANKS AND WAIT AND SAVE, SAVE, SAVE AND PAY CASH, CASH, CASH.
    Oh by the way guess who bought my HOUSE after $100k in improvements and was perfect.
    A RETIRED BANK PRESIDENT and He Paid CASH.
    THEY ARE NO FOOLS
    JUST US. WATCH HOW FAST PRICES COME DOWN ON EVERYTHING IF WE ALL JUST PAID CASH.
    The entire Economy is Manipulated by Wall St. and the CROOKS (Bankers)
    Can’t you people see that!!!!!!!!!!!!!!!!!!

  51. Bob on November 9, 2009 5:02 pm

    I’m a cross-dressing, illegal alien in a wheel chair and my Husband/Wife (Tranny) has epilepsy and herpies. We both have terrible credit and are serving time in Attica. Where is our tax credit?

  52. Larry DiFrancesco on November 9, 2009 5:14 pm

    Bad news….They are borrowing this money and future generations will be picking up the tab….in other words…….stealing the MONEY!!!

  53. Tim H on November 9, 2009 5:20 pm

    My wife and here first husband got a loan for a mobile home(Trailer) that was their primary home 22 years ago, her and I took over the loan and paid it off probably 15 years ago.
    She is the only one on the Home loan we just got this year on a house, does this make it our first HOME loan ?

  54. hans on November 9, 2009 5:47 pm

    In one of the articles on the net it was mentioned that the effective date of the credit was 11/06/2009. We closed our new home on 11/04/09 and also at that time we could not qualify for the credit as our( me and my wife) income was more than 150k. Now that the limit is raised to 225K, we could qualify. However, in another article, the effective date was 11/01/09. This is really confusing and also if the date is really 11/06/09, then we will be lose the tax credit.
    Can anybody clarify?
    Thanks
    Hans

  55. Don on November 9, 2009 6:52 pm

    Thomas

    You carry conspiracy theories to a new level. You said it yourself: “I was dumb to jump on the house”. So my question is who put the gun to your head and made you buy? And secondly, have you checked on the value of that house you sold in 2007 lately? My guess is the buyer, regardless of whether or not he paid cash, has lost money on the house so far.

    I’ve heard lots of ranting about the big, bad banks. Yeah…they did some really stupid things! But let’s not forget that the real root of the problem is buyers who failed to make good on their committments!

  56. Anthony on November 9, 2009 7:02 pm

    hmmm…wonder where my tax break for buying my house in Aug of 2007 is?…can anybody tell me that?

  57. Steve on November 9, 2009 9:01 pm

    Each one of these tax credits produce 5 to 7 times the jobs that the bailout of the auto industry did and at a fraction of the cost that allowed the auto industry to sell a bunch of new Pick-Up trucks for the older Pickups ! Now GM wants ever more bailout money, which will NOT create any more jobs, just pay the mismanagement more.

    At least this tax credit will create something.

    As for the mortgage mess, we did not enforce the laws well enough to stop the crach that most knew was coming.

    As for the price (ie property value) drop that has happened on both east and west coasts, this is directly brought on by individual GREED. A 30 yr old 3 bed 1 bath 1 car stucco home selling for $300,000.00 and higher. GIVE ME A BREAK. YOU DID NOT THINK THAT SOMETHING WAS WRONG WITH THAT ????
    Good luck to you who thought that was okay….

  58. Diane on November 9, 2009 9:03 pm

    With the banks, savings and loan companies really cracking down on who they give loans to, the majority will only loan to those with stellar credit, don’t you think? Therefore, why should those who CAN manage their money responsibly be afforded this break?
    It might make some purchase a month or two sooner than they would have, but how will that help the economy? I highly doubt people will be buying in droves!
    All in all, I think this home buying “stimulus” is very wrong, just like the car “stimulus”!
    I’m beginning to think President Obama is a Trojan Horse.

  59. gary on November 9, 2009 9:47 pm

    As with all of these Obamanomic handouts - this will have temporary, limited group benefit that will cost all of us for the rest of our lives. In addition, I cannot imagine anyone buying a house because of a tax credit. You buy a house because you need one, not because you get a credit. If it has an effect, it will be increasing the price to the seller, artificially propping up the price of property - sound familiar?

  60. Peggy Messinger on November 9, 2009 10:25 pm

    I’m tired of all these credits and incentives. Those of us who have lived in their homes for 10 years or more and have made payments get no breaks! Guess it doesn’t help to make your payments when due even though it may be tough to do!

  61. allan hanna malik on November 9, 2009 11:09 pm

    the majority of us love this beautiful country to death. the wright way to help recover the economy is
    1- lower intrest rate to small business
    2- reduce the tax rate for all business interprise
    3- reduce the government regulations
    4- stop bailing any failing companies if they took a bad decision they have to pay for it like everybody else
    5- the fed has to stop borrowing, spending what they do not have. who is going to pay these huge amounts of debt

  62. klarek on November 10, 2009 6:00 am

    Steve:

    “Each one of these tax credits produce 5 to 7 times the jobs that the bailout of the auto industry did”

    Citation, or are you just making that up?

    “At least this tax credit will create something.”

    It doesn’t create ANYTHING! It is a bribe to get people to change ownership of property. That’s F-ing stupid, and has zero economic benefit. Sure it’s great for the little RE agents and mortgage brokers, but why do they deserve billions of taxpayer dollars when they were the beneficiaries of the bubble to begin with?

  63. Mike on November 10, 2009 7:33 am

    Bought our house in Jan of 08. NO Gov’t tax break. The house is already worth $30K less, as everyone is dumping houses in order to move, and the taxes went up!! (This credit mainly gives young dual income people even more money). Haven’t lived there 5 yrs, no $6500 credit. When you have a family of 5 and make less than 65K yr this does NOTHING to help. We also had no Clunkers to trade in. WE ARE NOT SEEING ANY BENEFITS OTHER THAN THE $20 EXTRA PER CHECK, WHICH IS A JOKE. They need to do something to help families specifically, or nothing at all. All of this borrowing is going to come back to bite us again.

  64. Rick on November 10, 2009 9:36 am

    I am going to get a new bumper sticker: “Did I help buy down YOUR mortgage?” It’s all about redistributing the wealth - just take from those who can afford it and give it to those who cannot (even if those who “give” CANNOT afford it and those who “receive” DO NOT need it). Remember, the government does not have any money it does not take away from someone else (or borrow from another nation or its own citizens). It is so easy for Marxists to be generous with someone else’s cash! Believe me, it is going to run out … then what will they do?

  65. $ 8000 Refundable Tax Credit for First Time Homebuyers | Zillow Blog - Real Estate Market Stats, Celebrity Real Estate, and Zillow News on November 10, 2009 10:31 am

    [...] Recent Comments Buy ToLet on New Zillow Widget: “My Profile”Buy To Let on Zestimate AccuracyNatalie on Fire Damages Miami Beach “Castle” Listed For Saleyolanda on Foreclosure vs. Short Sale. Which is Better?Rick on $8000 Tax Credit Extended Through April 30, 2010 [...]

  66. Peter on November 10, 2009 11:53 am

    For those of you looking for a perfect solution I can direct you to any one of a thousand religions and you can find perfection in some Deity.

    For those of you looking for what’s best for you. Spend your time writing to you Senators and congressmen/women not complaining on websites. Better still if you are so SMART then why don’t you design a system that serves 330 million people most of whom earn less then $50k a yr. And that 90% of the population is the ones who do most of the buying and spending and living and dying in our country so, shut it!!!

    Rent “its a Wonderful life” and sit and explain to your children the meaning of life and how you and I can help the country get back on its feet by helping out.

    Be part of the solution not the problem!

  67. vw on November 10, 2009 11:56 am

    if they really wanted to spur the economy they would eliminate the cap gains tax and open up the market to more investors which would spur revitalization of all the neglected neighborhoods spurned by all the new construction of the recent craze. Tax credit for home purchase is fine but it shouldnt be so much or it should be a deduction instead of a hand out. What they are doing amounts to cash for shantys. They think the cash for clunkers was a big boost to the economy but all it did was raise auto prices. Since I’m in the market for a fixer upper I can thoroughly say that this insane credit has done nothing but overprice the junk on the market now.

  68. Chris on November 10, 2009 12:05 pm

    So, I am financing new home buyers when I stand close to losing my home that I have had for 30 years because my husband was terminated from his job 4 days short of 30 years in Nov 2007 and we can’t qualify for refinancing because he can’t find a job and my job does not qualify me for the amount we need. We have gone thru his $100,000+ 401k plus his $25,000 retirement fund for two years making house payments, paying taxes and insurance. Now we have $0 except for unemployment and my salary. He is 62 and I am 67 — it is scary to think that this time next year I may be 68 1/2 and homeless.

  69. Will on November 10, 2009 12:18 pm

    Are purchases from a relative still prohibited from receiving the credit?

  70. Zoe on November 10, 2009 12:25 pm

    You’ve had your house for 30 years and you’re close to losing it!? Shouldn’t it be paid off, or nearly paid off, by now!?

    I don’t really see how you can blame this one on the banks, or on Congress, or the president.

  71. klarek on November 10, 2009 12:34 pm

    I’m with Zoe on that. Sorry about your financial troubles, but it sounds like you sucked the equity out of your house and the bank is going to take a hit. Otherwise you’d be able to sell it. Not a lot of sympathy for people who engage in reckless behavior and then blame the banks that are going to take a loss.

  72. Billy on November 10, 2009 12:42 pm

    Is there any incentive for first time homebuyers who purchased their home on 2/29/2008 or are we just excluded completely?

  73. Mark from Florida on November 10, 2009 1:01 pm

    I’m buying a new house and qualify. Keep my credit!!! This is bad for the country. Prices have dropped enough to stimulate me to buy. This is horse&^%t. Get these guys out of there. Its this kind of short term, vote winning, solcialist theory that got us here in the first place.

  74. Jeff on November 10, 2009 1:01 pm

    Wow there are a lot of crybabies out there. Stop being so greedy and stop to think about someone other than yourself once in a while.

    All these people that bought purely as an investment vehicle simply didn’t understand how risk works. Investments are risk that are not guaranteed to pay off.

    Stop blaming the government or anyone else for your mistakes.

  75. Mani on November 10, 2009 1:02 pm

    Zoe, I agree with you, 30 years it should be paid off. why are they working at that age anyway, should have long ago retired.

    Peggy, your reward is your good credit rating

    Thomas, you say you did everything right? Buy High and sell low, how is that right?

    David, seriously, not working and buying a house, good luck with that.

    This credit does not benefit me. It has helped my young son and wife buy their first home. If you bought before the credit kicked in or plan to after, quit whining, timing is everything in real estate.

    Remember, your home is only worth something when you sell it. If you property value dropped 30% in the last year, so what. It’s only worth what someone will pay for it WHEN you decide to sell it.

  76. Sarah on November 10, 2009 1:05 pm

    What is the salary limit based on? W-2s (i.e. previous year earnings)? Or current salary statements, etc? And where could I find the information definitively in print?
    Thanks!

  77. PoorOldSot on November 10, 2009 1:13 pm

    Hello,

    I am sorry to hear about everyone’s problems. I am in bad shape financially myself and take blame. I tried to do what I thought was right and it did not work. I agree that alot of good people are paying the price of others. If you are healthy be thankful …you can’t put aprice on that and things will get better. If you are not healthy I hope you get better. I think we all learned a lot from the past two years…

  78. Billy on November 10, 2009 1:23 pm

    Are there any incentives for first time homebuyers who purchased their home on 2/29/2008 or are we excluded?

  79. Sheryl on November 10, 2009 1:28 pm

    Sure buy and the gov’t will give you money …. but those of us who bought our houses previously and have had taxes go up even in a failing market and who FAITHFULLY pay our mortgage every damn month ON TIME and work ourselves to the bone even with a 5% pay cut and try to do everything right will just keep on paying for those who don’t.

  80. Anthony Orona on November 10, 2009 1:28 pm

    I’ve owned an existing home for 25yrs and purchased a new home as my primary home in March 2009, will the $6,500 tax credit be available to me?

    Thanks, Anthony

  81. Nunya Bidness on November 10, 2009 1:54 pm

    Where were all of you complaining people during the previous
    8 years under Bush? No one was complaining when he was
    creating all of this mess! Now President Obama has to try
    to clean up this disaster of a country and everything he
    does is scrutinized. If people had been vocal when all of this
    was being created, we wouldn’t be dealing with this right now and we wouldn’t need any tax credits or bail outs! People were so quick to forget that! And they also forget that Bush pushed the first bailout through right before he left office. Selective memory is so convenient. All of you know where you can go!

  82. Shawn on November 10, 2009 2:08 pm

    Nunya Bidness,

    Yeah right! Like Obama has an F’n clue what he’s doing. Am I the only one that feels Obama is in no way qualified to be President. We all know the only reason he was elected. Would of been nice if he had a least proved he could run a STATE successfully before attempting to run a country. Oh, I’m sorry, did I state the truth. Hope I didn’t hurt anyones feelings!

  83. Brian J on November 10, 2009 2:10 pm

    So let me get this straight…I owned a home for 7 years and sold it a few months ago after a steep decline. My wife and I have been working tirelessly to move out to a more rural location so we bought a home a few months ago. We are not eligible for any form of credit whatsoever??? You have to buy from now until April 2010? …what about those that bought earlier this summer???????

  84. Diane Tuman on November 10, 2009 2:13 pm

    TO ANYONE WHO HAS A SPECIFIC QUESTION ON THIS BILL: Please post your question on Zillow Advice where real estate professionals and tax professionals will see it more readily than in this comments field.

    If your question is about $8000 first-time homebuyer credit, please post your question here:
    http://www.zillow.com/advice/US/all/question-discussion-guide/800-tax-credit?s=0

    If your question is about the $6500 tax credit, please post your question here:
    http://www.zillow.com/advice/US/all/question-discussion-guide/6500-tax-credit?s=0

  85. Anthony Orona on November 10, 2009 2:22 pm

    And the last admin for 8yrs had a clue (WAKE UP)

    I didn’t realize that the majority of people were in the top 1% income bracket.

  86. Kathryn Asfour on November 10, 2009 2:24 pm

    Where can we get a copy of the full wording of the $6,500. tax credit so that we can better understand the pros and cons for our personal use? For example, I have not seen what verification is required to show residency established, or has anything been printed to show repayment/penalties involved. Sounds like buying a pig in a poke.

  87. Laura on November 10, 2009 2:27 pm

    How about giving something to the people who did everything right and live in their homes, pay their bills and do all this without any special credits, stimulus plans, bailouts or handouts?

    Now, because of prior and current government BS, these same people are barely making it and have to sit back and watch people buy and move into the house across the street that got foreclosed on.

    These new people won’t be able to afford their new home, even with all their credits and special government offered do-dads because they didn’t save money for any of the unexpected stuff that goes with owning a home and then they get whapped with the same government BS that everyone else got hit with and we start this process all over again.

    Yeah, lets keep spending money we don’t have to keep selling houses to people who can’t afford them and make our national debt bigger and see where we are in a few more years…then we will let another Bush come in and finish what 1 and 2 didn’t.

  88. Kevin on November 10, 2009 2:29 pm

    Like “Cash for Clunkers” and other handout programs, this program is designed to please “Likely Democratic Voters”. In other words, Obama is buying votes with your money. That’s how communists stay in power: they enslave the majority into believing that they they couldn’t buy a house or a car or even health care without the overbearing hand of the all-powerful state to watch over them.

    A sure formula for disaster.

  89. Diane Tuman on November 10, 2009 2:29 pm

    The IRS has some posted some updated information that might be helpful:
    http://www.irs.gov/newsroom/article/0,,id=204671,00.html

  90. DebtFree on November 10, 2009 2:47 pm

    Chris, why not sell the house, extract that 30 years of equity in cash, and rent a place?

    “So, I am financing new home buyers when I stand close to losing my home that I have had for 30 years because my husband was terminated from his job 4 days short of 30 years in Nov 2007 and we can’t qualify for refinancing because he can’t find a job and my job does not qualify me for the amount we need. We have gone thru his $100,000+ 401k plus his $25,000 retirement fund for two years making house payments, paying taxes and insurance. Now we have $0 except for unemployment and my salary. He is 62 and I am 67 — it is scary to think that this time next year I may be 68 1/2 and homeless.”

  91. Tony on November 10, 2009 2:50 pm

    I’m not a democrat, and if it comes my way I’ll take it, the wealthy have been taking it for years thanks to the none democrats.

  92. DebtFree on November 10, 2009 2:51 pm

    Not true Mani.

    1) One can extract equity from a house to obtain cash.

    2) One cannot refinance to a more favorable interest rate if the house appraises for less than the mortgage balance.

    3) It’s financially stupid (and burdensome) to pay a $300,000 mortgage on a house that’s worth $150,000.

    “Remember, your home is only worth something when you sell it. If you property value dropped 30% in the last year, so what. It’s only worth what someone will pay for it WHEN you decide to sell it.”

  93. DebtFree on November 10, 2009 2:54 pm

    Mike, your comments bring to mind the realtor fallacies “Renting is throwing away money!” or “Don’t pay your landlord’s mortgage, pay yourself!”

    Each month our “mortgage check” is deposited right into the bank, until home prices reach sustainable levels (about 30% lower than they are today).

    “Bought our house in Jan of 08. NO Gov’t tax break. The house is already worth $30K less, as everyone is dumping houses in order to move, and the taxes went up!”

  94. Seth on November 10, 2009 2:54 pm

    Seems to me that recently graduated students who had their jobs hit by the recession are left out in the cold. I bought a house just out of school and had roommates, and now have to move to get closer to a better job. Since I hadn’t owned my house for 5 years before having to move and because I’m not a 1st time purchaser, this doesn’t help me at all. I’m not that established in my profession-so I can’t afford a newly built home that would take advantage of Utah’s credit for newly built homes. It’s like they’re dancing around trying to find ways to not include those who have been hit hard.

  95. Lori on November 10, 2009 2:54 pm

    This is just great. We lived in our previous house for 10 years. Had a new house built and moved in in November 2008. Between building our home, and having to sink so much into it (stimulating the economy)- painting, landscaping, new appliances, etc etc… looks like, due to timing, we are getting zilch. Same thing happened to us when we bought a new air conditioning unit for our previous place, $5,000 for a new ac/heater unit- missed the energy credit by 6 months. The government should be fair about it- instead of giving to just a few, why not give tax breaks across the board? Why not give tax breaks for people that spend money, keeping the economy going? Years ago, you could deduct the sales tax paid on goods and services. Now, they want to give thousands to some people who in a small span of time have, or may plan to buy a home? Not fair.

  96. Zal on November 10, 2009 3:00 pm

    Me too bought a house in 2008 received $7500.tax credit I should say Loan.This is not fair That we have to repay.Can anyone help us here.
    Thanks

  97. Jeff on November 10, 2009 3:05 pm

    Why the 5 year restriction for people who already own their home! These are the people who have seen the biggest home-value declines (since they bought when prices were falling and missed out on the earlier price increases) and now are being left out of the policy.

    Call your Senator and tell them to allow ALL move-up buyers to receive the credit.

  98. paty on November 10, 2009 3:14 pm

    We are selling our home of 6 years for one price BUT we are going to downsize and pay less for the new home. Will we be eligible for the $6500 rebate?

  99. Tony on November 10, 2009 3:42 pm

    I am absolutely pissed as well. I bought my home in June 2008 and took the $7500 cred… err LOAN… I feel totally crapped on by the government that I voted for… however, I can’t imagine the mess the common people in this country would be in if the Republicans had won in November 08! At least Obama is trying to help the MAJORITY in this country ride out this mess that G.W. put us in!

  100. barbara m ruh-short on November 10, 2009 3:45 pm

    DOESNT EVERYBODY REALIZE THAT THERE IS A CATCH TO ALL OF THIS.SO YOU GET THIS HOUSE BECAUSE OF THE 8,000 TAX CREDIT,& 6 MONTHS DOWN THE LINE YOU FIND THAT YOU CANNOT AFFORD THIS HOME,SO WHAT CREDIT DO THEY GIVE YOU NOW??OOPS YOUR ARE YOUR OWN NOW,ALOT GOOD THAT TAX CREDIT DOES YOU,RIGHT

  101. Brian on November 10, 2009 3:51 pm

    An they will also extend the April 2010 deadline too because they have now artificially inflated the market. They will need to continue to subsidize this farce or watch the housing market stagnate or even tank for a year or more while it corrects itself. No politician has the fortitude to kill the housing market. Just like the Farm Bill subsidies which continue 75 years later, there is no end in sight.

  102. Marie on November 10, 2009 4:05 pm

    Oh please! Is this for real? People are whining and some people are thinking they couldn’t do this without this ‘credit’?

    Let’s be real, a tax credit of 8k is only going to change what you owe to the government in taxes by a few hundred. If you are here saying you couldn’t have afforded to buy the home or you thought something else, you are sadly mistaking. Mortgage companies would have given you money then and now regardless of the credit. Real Estate people would have sold you a home, and CHEAPER, before the credit. It’s no more than offering a bone to a dog, and you keeping the steak to eat.

    If you couldn’t afford the house before a tax credit isn’t going to matter. Raising the income to $125 just means they are going to pay taxes for 117k, it’s not like they are changing your tax bracket to 15%.

    Exactly how does buying a house in foreclosure or or on the market, stimulate our economy, anyhow? It isn’t employing ONE SINGLE PERSON! And unless you are going to take the 8k and put it into our economy by purchasing NEW US made products for your home then you’ve done nothing but steal/take away from our economy.

    Look the only thing this is helping is to make banks richer, property taxes higher/inflated, and already employed real estate people busy. It’s not like you are remodeling or constructing thus EMPLOYING people and adding to our economy.

  103. Joe on November 10, 2009 4:31 pm

    I think if they are going to waste our tax money on a selected few why not reward the people who actually keep this economy afloat! I for one qualify for this $6500 tax rebate and WILL take full advantage of it! All my life I have paid for these failed programs and NEVER got a dime back for it. So thank you for once giving the middle class people a break . A person who paid taxes and paid my share! Thank you for rewarding the people who make a differnce in this country and work hard for what we have only to always give it away!

    And as far as the comment made about getting rid of the FHA , fannie mae loans and make people put a ton of money on a house. That is real smart you can then watch the market sink faster than a brick in water because NO ONE will buy a house! Idiot! And all of us will lose our shirts due to the houses we live in will be worth nothing!

  104. Joe on November 10, 2009 4:37 pm

    Marie you have some valid points but I am going to put the money to good use. I am going to now but new things for the house with money I did not have. This way everyone wins I get new stuff and the money goes back into the economy like it should. The thing with this is for once they are now trying to help the people who have gave to this system all their lives. And if you are bitter about it then go sell your house and buy another one. No one is stopping you! For me this came at the perfect time. It give me a boost and helps me struggle just a little less. I don’t know about all of you but I can make $6500 go to great use. This economy is screwed now matter how you slice it so if you can get some help in life you take it because most of us for the most part are always giving!

  105. John on November 10, 2009 5:47 pm

    This helps me NADA. Lets see the economy goes bust, so my job/salary gets cut so I cannot qualify for a refi to get a lower rate. Since I was actually laid off for a short time I couldn’t afford my payment so I had to rent out my condo and move back in with my parents, so I don’t qualify for the homeowners credit because the last year I have not lived in my house.
    Does this administration really think they are helping people like me with all of the programs if we can’t take advantage of them?
    And before anyone starts my total mortgage is $50,000 and my MBA education is now allowing me to make $17,000 a year. Hey Obama, Pelosi…I am not crazy about this “change”

  106. Albert on November 10, 2009 5:55 pm

    Why not give the credit to everyone. We’re not buying a home, and we are not in our home five years, so we get screwed.
    Like the cash for clunkers rewarding foreign car manufacturer’s economy. Didn’t any of the Pelosi or Harry’s sheep know this either? Guess they didn’t read this bill either. Do you think our congressman can read? The lobbyists write the bills and the sheep all rubber stamp it.
    Finally we are starting to see a little light in the tunnel from NY & VA. 2010 will bring us more light, and 2012 will bring the full light and get rid of all the dead wood liberals in DC and elsewhere. Hang in there you loyal, conservatives we will once again overcome. Nothing is forever!

  107. reaping the benefits on November 10, 2009 8:12 pm

    well, we are reaping these benefits…..we had a clunker…now we have a 09…….we have been in our home for 6 years, now i have to relocate to northern va, so we will be able to buy us a new home…$6500 credit….and we are in a 3yr arm, that matures next month with a 3% prepayment penalty, but because the market is down, libor + .60, means that our payment wont go up, but we want a 15 yr fixed anyway, with bi-weekly payments…….and being a veteran we can use our va loan for the new house…..stay around 250,000…….this is where preparation meets opportunity…….so be prepared!!!!!!!

  108. Roxie on November 10, 2009 9:41 pm

    The credits will simply move the next generation of families into houses with the cycle eventually repeating itself leading to a bust for them.

    The real estate companies are happy to take 6% of your total selling price; the mortgage brokers who get the loan for you who work with the real estate companies and brokers; the banks or major loan companies will be happy to take your loan and then resell it.

    Folks this is the real estate ponzi scheme.

    What is so truly sad is that many seniors will take the brundt of this as their houses will now be forclosed on if they haven’t sold their homes.

    And don’t forget that other takers include the title companies, the surveyors, the inspectors, the tax departments at all levels. Oh yes, insurance and then add in those alarm systems if you aren’t in a gated community.

    This is a ponzi scheme just as bad as was Madoff’s ponzi scheme.

    Now move over to the investments——-have you ever heard a real estate agent say that they lost everything in the stock market——-their life savings. I have.

    Because of Obama’s limits on these loans——-many mothers and fathers of the young people that Obama is now trying to entice to buy houses will be on the dole.

    His limit of $800,000. won’t say those who bought houses and have home equity loans to build and repair their homes nor those who sunk their retirement funds into homes—–a home is a man’s castle—right—–no its not a man’s castle.

    Your home belongs to the government, the real estate industry and all of the middle men and women. The big ponzi scheme.

  109. Natalie on November 10, 2009 10:04 pm

    I’m so sick of all these home buying credits. What about all of us that have owned our home for YEARS and have continued to pay on it and have not run away and let their houses go into foreclosure.
    I so agree with Sheryl

    “Sheryl on November 10, 2009 1:28 pm

    Sure buy and the gov’t will give you money …. but those of us who bought our houses previously and have had taxes go up even in a failing market and who FAITHFULLY pay our mortgage every damn month ON TIME and work ourselves to the bone even with a 5% pay cut and try to do everything right will just keep on paying for those who don’t.

  110. Roxie on November 10, 2009 10:08 pm

    To Chris

    Hang in there——-what happened to your husband is common.

    This is how our society treats people as they age—it’s unfortunate.

    Instead of selling these houses out from under the Seniors the Seniors should be kept in their homes and kept there with dignity.

    You have contributed to society throughout your life—–you should be able to have help and not live in fear of your house being taken.

    Don’t know where you live, and that is personal, but just know that you are not alone——that’s why the way we vote is important.

    The stock market began to crash bringing down the retirement funds when it became obvious that Obama would win the election that was back in Iowa when he defeated HIllary.

    With the stock market crash followed the layoffs and followed the decline in housing as the excesses of the real estate industry from the Federal Government to the brokers level were revealed.

    This is a major recession on the verge of a total depression with few having any idea how to deal with the financial issues.

    Just a suggestion, call your mortgage company and ask for a reductionin the monthly payment. Do the same with the phone bills, the other bills——sure it’s hard to ask but start asking personally for those reductions—–you are a senior citizen, it’s hard to admit that so use that fact.

  111. Cheryl on November 10, 2009 10:14 pm

    We just bought a second home, have lived in our primary residence since 2004…I don’t think I qualify for anything..even though I fall into the income bracket, this 2nd home will eventually be our permanent residence it just isn’t now. If we make it our permanent residence before April 2010 do we qualify for the tax credit..We are planning on down sizing the home we have now which means we will sell another home and buy another home…where is my break in all this.

  112. Bird on November 10, 2009 10:25 pm

    I had no idea that Zillow-followers had such mental capacity.
    It’s rare to read this amount of stupid questions/comments in one place,and to do so at Zillow.com surprises me. I’m amazed that these people are capable enough to even own a house/home at all.
    No wonder the real estate and lending markets are in trouble.
    I no longer believe that lending practices or the Wall Street is to blame for much of the trouble if *these* are the borrowers and investors.
    This tax credit (Yes - *credit*. Not a rebate,not a refund and not a reward in form of a check in your mailbox because you lived in your home for 5 or 30 years and failed to pay down your mortgage…) is desperately needed in the education system. Not to teach little kids their ABC’s,but rather educate them on issues needed to take care of their parents who clearly spent their time on anything but education.
    Where are you people from?
    Who is willing to pay you enough to purchase a home,a computer and to get online when you have no reasoning skills?
    Who in the world is supporting this level of stupidity?

  113. warda gounder on November 10, 2009 10:57 pm

    Those of us who bought our houses previously and have had taxes go up even in a failing market and who FAITHFULLY pay our mortgage every damn month ON TIME and work ourselves to the bone i lived in. I owned condo AND LIVED IN for past 16 years ,AND NOW RENTED OUT AT BELOW MARKT RATE .Purchased a new home as my primary home in March 07 ,2009, will the $6,500 tax credit be available to me?

  114. warda gounder on November 10, 2009 11:01 pm

    CORRECTION
    Those of us who bought our houses previously and have had taxes go up even in a failing market and who fithfully pay our mortgage every month ON TIME and work ourselves to the bone . I owned condo AND LIVED IN for past 16 years ,AND NOW RENTED OUT AT BELOW MARKT RATE .Purchased a new home as my primary home in March 07 ,2008, will the $6,500 tax credit be available to me?
    any advice will be appreciated
    thank you

  115. warda gounder on November 10, 2009 11:03 pm

    CORRECTIon house was purchased on march 7 2008
    thank you

    warda

  116. flghtmedic on November 10, 2009 11:23 pm

    The extension still does me no good. I lived in my old house for 4 yrs 11 mos. As well, my wife and I closed on our new house in Nov 08. We are doubly ineligible for doing what we wanted to do anyway.

  117. Vinny on November 11, 2009 3:22 am

    You can lead a horse to water but a pencil must be lead. This quote from Soupy Sales in 1963 seems to fit the hogwash I just read!

  118. Fletch on November 11, 2009 5:16 am

    My closing date was Dec.28, 2007.
    I am SO kicking myself.

    When am I going to get rewarded for overpaying on my house, becoming upside down on my loan, yet STILL keeping current with my mortgage payments??
    WTF

  119. Michael on November 11, 2009 6:39 am

    Nunya,

    There were plenty of people that were screaming loud and hard when George W was president. More than 50% of the country was clearly against TARP, but the government did it anyway. More than 50% of the country was against bailing out the Auto-makers, but they did it anyway. More than 50% of the country was against the $800 Billion so-called “stimulus”, but they did it anyway.
    This isn’t about one party being better than the other. Both parties have many members that are corrupt and serving special interests or playing God. The more power that is given to the Federal and even State governments, the less influence we have over the decision making process and the more easily government officials can be corrupted.
    Your defense of Obama/Pelosi/Reid under the pretense of “they have to clean up George Bush’s mistakes” is a smoke screen used to win the last election and deflect criticism.
    As long as our Federal government is allowed to try and control the economy through artificial means instead of letting the market place dictate what goods and services are successful and how they are priced, we will continue to be struggle.
    Please read the recently published book “Meltdown”. It will help explain free market principles and how government intervention only leads to a cascading series of unintended and usually disastrous consequences.

  120. cstewart on November 11, 2009 7:58 am

    My husband and I bought a home in Nov 2007.
    He then lost his job in Dec 2008. I took a 10% pay cut at the same time. He is still trying to find work and I have been told by work we don’t know when we can give you your money back. No credit for us still making all our payments on time. Taxes go up, heating costs and everything else, we still make our payments. Now I am going deeper into debt trying to keep my home. Now my 25 yr old daughter and 4 year old son have had to move in and she can’t find a job. So add 2 more mouths to feed. Heating costs and electric up since there are 3 people home all day. When I bought the house it was based on what my husband and I both made every month. Well we don’t make that any more and are struggling. Where is the help for us? Also my house is worth $10,000 less then when I bought it. We were a first time homeowner. No credit because we bought to early? This is a crock. If you are going to give out credits make it for everyone not just the few.
    I am ashamed of what my country has become. Just a bunch of greedy people.

  121. Chris on November 11, 2009 8:04 am

    3 years ago my house was appraised at %535,990; we owed $290,900; today we owe $$280,250 and the house is now appraised at $225,000-$250,000. Yes, about 7-8 years ago we did refinance and pull out money and did some remodeling (the house was built in 1965 and bathrooms were in dire needs of remodeling — not to mention the kitchen, etc. We consolidated our bills — still way down there on balances — could be paid off in one month if we wanted but prefer to carry a little debt to keep the cards open; paid off both cars, etc.) This is not of our making — we have been prudent with the money. When I came into the picture 20 years ago, my husband owed a 2nd and 3rd with a balloon payment due in 5 months. We paid that off and then refinanced and remodeled, improved the property. Something wrong with that?

  122. klarek on November 11, 2009 10:21 am

    You know what’s really depressing me? Most of the objections here are from people that are p.o.-ed that they can’t get their share of free money too, thus adding to the problem. What a sick, selfish, stupid country we live in.

  123. klarek on November 11, 2009 10:28 am

    Chris, after 30 years, your house should be paid off. Even if you made $200,000 worth of home improvements, you wouldn’t be underwater. Your numbers don’t add up. You obviously used your house like an ATM machine and milked the banks for a lot of money. They aren’t the bad guys and you are by no means a “victim”. Someone had to say it.

  124. Marie on November 11, 2009 11:22 am

    Joe! Way to go! You are going to invest the money back into our economy; that’s the intention of this whole entire program.

    I’m not negative about the concept of the stimulus programs but people are just not getting what the real intention is about and that is what I’m negative about! If every single person here, put the money back into the economy then we would have an economy that is recovering!

    Look I thought giving a credit for a house WAS a smart thing, because the average homeowner spends 50% or more of their paycheck on their home buying things and fixing it up (when they first get it)! But when you hear these people become so selfish and get lost in the money/credit and deface the intent of the program, it irritates me to no end!

    There was one person (maybe more) that said Americans were stupid! I disagree! Americans are doing exactly what the industry has been setup to do. Failure was built into these programs because of the lack of planning, education, and follow-through.

    I think the better stimulus would be to give every person & business a sliding scale tax credit for every $1k they spend in our economy (no limits!) on purchased products and services. Putting a stimulus in reach of every American (and US Business) would put our economy back on it’s feet fast. It also brings about that natural instinct we have to WIN and compete; I can see people on Dec 31 trying to hit that next level of stimulus!

    Doing these car, unemployment & home programs is too cryptic and the purpose gets lost and abused. As shown in this site!

    Rebuild our economy! AND NO JOE, it has NOTHING to do with me wanting or not wanting to sell or buy a home, I hope that is clear in this write up.

    Again, thank you for using the credit as it was designed! I’m unemployed and you are going to help fix that with your efforts, it is appreciated!

    Marie

  125. klarek on November 11, 2009 11:37 am

    “There was one person (maybe more) that said Americans were stupid! I disagree! Americans are doing exactly what the industry has been setup to do.”

    Americans are stupid, and for that reason. The govt bribes them with $8000 to buy a house, they all rush out to get theirs, and end up bidding prices $20,000, $30,000, $40,000 more than they were before the credit. So paying tens of thousands of dollars more for a house for an $8000 bribe is just one example of many how Americans are stupid.

    And no, it doesn’t help the economy for people to spend money that’s not theirs. That’s how we got into this whole mess. It’s a shame how white-washed the populace is with this scam.

  126. Michael on November 11, 2009 11:41 am

    Marie,
    I question the purpose of the program as you have identified it. You say it is to put money back into the economy; to drive spending; and therefore improve the health of the economy. I think there is a great deal of evidence to refute these reasons.

    1. The government (both Bush & Obama administrations) are on record stating that they were concerned about home values depreciating. This lead to “under-water mortgages”. By artifically stimulating the market-place, in this case the real estate market, they are propping up home values. The key here is that it is artificial. When the program ends, the demand lessens and home values fall once again. This is the principle of supply and demand economics.

    2. A key problem which became very apparent as our economy collapsed, is that both our government and individuals are overly burdened with debt. We have spent beyond our means to pay. Every child born today is on the hook for ~$300,000 of government debt through money spent already or promises to pay (for programs such as future spending on Social Security). Many people instinctfully recognized their error and started saving money and paying down debt. The prudent thing to do at any time but especially so in a bad economy where employment is in question. It seems to me you have bought into the bogus and completely illogical statements of our vice president who stated “we need to spend money to keep from going bankrupt”. When you step back and look at the situation, the hard numbers staring all of us in the face, you will realize this statement is complete propaganda. Just like when Bush said we need to abandon free-market principles to save the free-market. Don’t buy the BS they are selling.

  127. Emil Blatz on November 11, 2009 11:56 am

    To Klarek:

    Precisely the point - but the focus of your anger should be on the Obama administration which has inverted the Kennedy mantra (”…what you can do for your country”) and turned this into a free for all where everybody has no other incentive than to “get some”.

  128. Nunya Bidness on November 11, 2009 12:01 pm

    Shawn,

    President Obama was elected for several reasons:

    1. He was the best qualified candidate. Need I remind you that Bush ran a state before his presidency and you can see how that turned out.
    2. People were tired of the direction this country was moving in - both domestic and international policy, the economy, the environment, and the war.
    3. Young, minority, and educated Americans voted.

    But, I wil give you a pass because a dumb backwood hick like yourself wouldn’t know any better. Please go somewhere and get an education. Get to know people who are not all like you. Or, simply read a book.

  129. klarek on November 11, 2009 12:03 pm

    Emil Blatz:

    Sure I’m angry at the Obama administration for their free money program. But it’s the PEOPLE who need to hold them accountable. So long as we have idiots that think we can just bailout ourselves to prosperity where everybody gets daily stimulus checks in the mail, our country is doomed. Shame on the populace for being so naive.

    Nunya Bidness: “He was the best qualified candidate.”

    If that’s true, then Bush was the best qualified candidate in 2000 and 2004, right? Elections are only partly about qualification and have much more to do with policy and popularity. How’s that education working out for you?

  130. Marie on November 11, 2009 12:57 pm

    I 100% completely disagree with your statements. They are myths and not truths, Michael. I believe you are looking at the outcome of the poor program that was put into place and not the outcome that could have occurred with a properly implemented plan.

    I said NOTHING about putting things on CREDIT or TIME, when speaking about the 1k stimulus. YOU are reading things into what is being said with your own bias and I can only assume you did the same with everything on this topic!

    When you childishly attack another person’s belief, you will get the same thing back! As I am going to assume this is the only way you know how to communicate. I’m sorry your mind is so clouded with falsehoods and stereotypes that you are unable to reach for anything hopeful or promising. I wish you all the luck in your miserable life, if this is the way you want to live it in bias and contentment for every drop of hope in our world!

    I’m done with this nonsense!

  131. DebtFree on November 11, 2009 12:59 pm

    RE: “now rented out at below market rate”

    If no one was willing to pay more, then you are by definition receiving “market rate.”

  132. Michael on November 11, 2009 1:56 pm

    Marie,

    It is interesting that you would state the claims in my previous post are “myths and untruths”. A quick google search produced an article published in the US News and World Report. http://www.usnews.com/money/personal-finance/real-estate/articles/2009/02/18/the-obama-housing-fix-5-things-to-know.html
    It was the very first result returned. If you read this article you will note that Obama is qouted as saying “…arrest this downward spiral…” This is in direct reference to home property values.

    Since you used the plural (Myths), I assume you are referencing my second point about our public & private debt. To validate my points, I suggest you visit this URL.
    http://defeatthedebt.com/understanding-the-national-debt/how-much-do-we-owe/
    The data compiled at this site is actually from official government resources such as the Congressional Budget Office, the Department of Treasury, etc. It is a matter of a simple calculation to divided the total debt (both accrued and promised) by the population to arrive at a cost per person.

    There are many other sources to validate both points I made.

    All this said, it is even more intriguing that you would attempt to personally attack me. You state that I am attempting to mislead people. You attempt to portray me as “childish”, “clouded”, “bias”, and “stereotypical”. I’ve supported my statements in my previous post with facts.

    I believe it is clear you are attempting to create a mud-throwing campaign to simply distract other readers from the facts and personall attack me. I’m confident the vast majority of people reading these posts will see your attack for what it is.

  133. Pam on November 11, 2009 3:09 pm

    Although there may be reasons why this will not work in the long run, I, personally, am an example of someone who it will work for. The tax credit money I will receive for the house I am about to close on will IMMEDIATELY benefit the local plumbers, electricians, and carpenters I will hire to fix up the house I’m buying. Without the tax credit I cannot afford to make any improvements. I also hope it will help someone be able to afford to buy the house I’m selling. I wonder if all those people who are opposed are much wealthier than I am. I am very appreciative, as a hard-working, employed, but not able to make ends meet, American, to gain a tax benefit — much as wealthy Americans were able to do during the past administration. My decision to sell my house and buy another one, by the way, is so that I can scale back to a more modest property that, I hope, I’ll be able to maintain easier. This is NOT a chance for me to live a luxurious life but it IS a chance for me to, I hope, live with my ever-diminishing paycheck. Whew!

  134. Sarah Wakler on November 11, 2009 3:57 pm

    Take a break everybody. It’s only a 10% credit UP TO $8000 or $6500. The example of a $500,000 house, the credit would be $5,000. In order to get the maximum, you’d have to buy an $800,000 home.

  135. Mercedes on November 11, 2009 9:12 pm

    If you want to really help, make the tax credit available to people who just traded up within the past 5 years. We are the ones who are inches from foreclosure and we could have used a tax credit when bought our overpriced homes. Hey, Mr. President and Congress, can we get a break?

  136. klarek on November 12, 2009 7:30 am

    Sarah Wankler: “Take a break everybody. It’s only a 10% credit UP TO $8000 or $6500. The example of a $500,000 house, the credit would be $5,000. In order to get the maximum, you’d have to buy an $800,000 home.”

    Somebody flunked 2nd grade math.

    Don’t tell people to take a break or try to defend this garbage if you can’t even compute the most basic arithmetic, let alone understand how awful this is.

  137. DebtFree on November 12, 2009 7:57 am

    RE: “Without the tax credit I cannot afford to make any improvements.”

    Pat, the first thing that comes to mind when reading this statement is: “This person can’t afford to buy a house.”

    What if your furnace breaks? The roof leaks? If you don’t have $25K or more in the bank AFTER closing on a house, you’re putting yourself on thin ice…

  138. Chris on November 12, 2009 1:32 pm

    Klarek: who said we pulled out $200,000 — I didn’t! Our house lost value due to the downturn in the housing market. We pulled out enough to remodel the bathroom, buy a new stove (the house was built in 1963 and those were the original appliances), dishwasher and pay bills. What I am upset about is all the “giveaway programs” the government is involved in. First, we gave money away to car companies because people were not buying enough of their cars to make them profitable anymore. Then, because people still were not buying the cars, we gave money to people to buy the cars we had paid the companies to build. Now, because housing prices were going ballistic and people could no longer afford them, we are giving people money to buy a house they can’t afford? I thought that was the reason for the “recession” (should be spelled depression) — people were buying houses and cars because they could get the loans and they had no idea how they were going to pay them back. Giving money to people who really can’t afford it (or this incentive would not be such a big thing) is going to keep the economy depressed. Let the big companies either produce a product that the people WANT to buy, and at an AFFORDABLE price or let them take their licks just like we have to. Quit bribing people to buy things.

  139. klarek on November 13, 2009 10:47 am

    Chris, I’m saying your numbers don’t add up and you’re obviously not telling the truth. You’ve had your home for 30 years and owe $280,000 today. That is more than appliances and a bathroom remodel. You cashed that house out BIG time. Stop lying. Anybody that bought more than ten years ago and cannot sell for a profit today had to have liquidated their bubble equity and should be publicly flogged for their greed.

    Fact is that in nearly every market, housing prices are still way too high. The bubble hasn’t fully corrected. Meanwhile you’re crying foul after having fleeced the banks of their money? Shame on you.

  140. Al on November 14, 2009 1:17 pm

    I have to agree with Chris and you but I have to ask Klarek what world he’s living in but some of us did do right thing to help the economy. Some of us did not only invest the money we taken out in our home to help some small businesses, but also created businesses which help create job and which should be where we invest some of our tax money in. We can invest in foreign businesses in countries but some of us that call ourselves patriots scream bloody murder when we invest in our own people and country. As long as they are making fast money off anything they do not care about anyone but themselves. As far as the banks they’ve made more money then they should from very high interest on credit cards, home loans, car loans, insurance investments etc.. when they are get loan for 1-5% percent and charging us 10-30% percent. And yes I have very good credit, and one more thing if you are defending the banks you must be a well to do Republican that made money off of us, and as far as the business that was created it’s doing well enough, what have you’ve done lately for anyone but yourself to help the economy. Create a business and employee some of real Americans or a vet or two.

  141. heidi on November 14, 2009 3:11 pm

    I was thinking about buying a home once I found out that my landlord was selling the single family house that I was renting for 4 years. The houses for sale in my price range were in need of much repair. I purchased a home knowing the $8000 would be used to help me do these repairs and I got a great price on the home. I would not have bought at this time if it were not for the $8000 tax credit. I looked at over 140 home in five months and they were in bad shape. Most of the homes were not winterized, which means they had severe water damage plus plumbing problems.

  142. Mercedes on November 14, 2009 3:19 pm

    Quite frankly, I can’t stand it that many got suckered into believing that their homes were ATMS. My parents bought a row home in NY for $32,000 in 1972. They are the most frugal people I know and are my role models. Their home is paid, has no liens on it and can easily fetch $300,000 in New York City because that is what the market will bear there. My parents have had the good sense to refrain from living on the equity. My father always said a home’s intrinsic value was in that it was the place that protected us from the elements. It corrodes in time because all structures do. The smart homeowner will refrain from seeing a home as a commodity or a cash machine and understand that any gains made on your home need to be reinvested in it or else you won’t have a home for long.

  143. klarek on November 15, 2009 12:02 pm

    Well Mercedes, according to Al, your parents are bad Americans because they didn’t suck out the equity to create businesses and jobs. That’s the sort of sick mentality these defenders of people that are financially irresponsible have. Seriously though, good for your parents. That’s the way to do it.

    Al, no offense, but you’re an idiot. For Chris to have owned the house for 30 years and now owe more than it’s worth, it’s clear that she and her husband blew the cash on god-knows what. She won’t say what it is, but clearly they liquidated all the house’s worth (and plus some thanks to the housing bubble), and are blaming everyone but themselves. Also curious still is the utter lack of honesty

    about where the money went. To owe more than the house is worth 30 years later isn’t explained by a remodeled bathroom and a couple of new appliances.

  144. DebtFree on November 16, 2009 3:25 pm

    klarek is on point. Stove + bathroom renovation doesn’t equal $280,000.

  145. November 19th Daily Report « The LYON Uncaged on November 18, 2009 4:09 pm

    [...] to further home declines in many parts of the country.  Meanwhile, the extended and expanded homebuyer tax credits have the potential to stimulate demand to counteract these declines.  Regardless, it seems some [...]

  146. lenny on November 18, 2009 5:05 pm

    Please stop asking questions, who prepares your taxes? Ask them!

  147. Sam on November 21, 2009 5:01 am

    The 1st problem is us. The 2nd is the Govt listening yet again to the special interests of Greedy Real Estate “Professionals” and Builders who strategically want the govt to give us this stimulus just to prop up the artificial prices of their overpriced and over-developed areas. What $$ is industry offering at a minimum match as incentives to homebuyers????? I agree 1st time homebuyers need all the help they can get the 1st year. STUPID PEOPLE including everyone on this board who did nothing to work with their weak government to prevent Real Estate, Builders, Insurance, and Utility companies from running shod over the people with high rates. We are all responsible. Get your asses in the kitchen and make me some pie ! I got work to do.

  148. Real Estate IRA on November 26, 2009 5:10 pm

    It’s going to take a lot more than a new home buying tax credit to turn the market aroud. The government needs to consider something to keep people in their homes rather than to see them lose them to a short sale or foreclosure. Until we realize this, we can issue all the tax credits we want and I don’t think it will mean much.

  149. Pat Maguire on November 26, 2009 8:04 pm

    If I bought my first home August 2008, am I entitled to the
    credit.

  150. Owning Cheaper Than Renting? on December 4, 2009 9:48 am

    [...] top of all that, you get $8,000 in cold hard cash if it’s your first home. Home buyers who’s lived in their residence for at least 5 [...]

  151. Oscar bastidas on December 13, 2009 12:57 pm

    I alraedy bought a house on August 2007.
    Do you think that i can apply for $8,000 tac credit?

    Thank for this kind of helping

    Oscar bastidas

  152. Buy To LetMortgages on December 15, 2009 5:01 pm

    This sounds like a good idea of Oscars if it is plausible.

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