Housing Amendment in Stimulus Package Leaning to $8000 Tax Credit

65 Comments so far

1. Vic on February 12, 2009 2:34 pm

   What’s the point then? There already is a $7,500 tax credit in place for first-time home buyers. Then throw income limits on top of it.

2. Pat on February 12, 2009 2:42 pm

   The only difference now is if the credit doesn’t have to be paid back. This more or less seems useless. I’m hoping to buy a home soon and was ecstatic about the 15K. Then I was hoping for just the 8K, but I already own a home…

   If I got $8,000 back after buying a house, I would probably spend it all. I was planning on finishing the basement, new kitchen cabinets, some landscaping. Doesn’t that sound like a stimulant to the economy?

   I generally lean more to the democrats side, but this plan does next to nothing for the housing market…thanks morons, I’ll remember this in the next elections.

3. Joyce Staples on February 12, 2009 2:57 pm

   Housing drives the economy in this country…there is nothing stimulating or job creating in this bill…it is the biggest government power grab in the history of this country leading the way to us becoming just another third world country…there is enough money in this bill to pay off every residential mortgage in this country up to $150k…see how that would stimulate the economy and help those people being kicked out of their homes…the only thing that made any sense in this bill was the 15k for

4. jtk on February 12, 2009 3:27 pm

   Prepare for some dark times… this stimulus is not hitting the sweat spot and is now just a catastrophic waste of money. First time home buyers are most likely the ones on the side-lines with some savings to dump into a home. How about the people who have a home but ‘need’ to move… those people are loosing tens of thousands of dollars on the sale of their home. It is just unbelievable that this is going to be kept strictly to first time home buyers.

5. DebtFree on February 12, 2009 4:00 pm

   $8,000 should address this problem:

   ————————

   ECONOMIC REPORT

   Seven years of wealth gains gone
   After years of strong growth, typical nest egg now smaller than in 2001

   WASHINGTON (MarketWatch) - The nest egg of the typical American family is smaller now than it was seven years ago, according to Federal Reserve data released Thursday.

   …

   A rising percentage of households were excessively indebted. In 2007, 14.7% of households were paying more than 40% of their income on debt service (including rent) up from 12.2% in 2004. More than a quarter of the poorest households were paying more than 40% of their incomes. The biggest increases in debt-service levels, however, occurred among those making more than median income, especially those at the very top.

   marketwatch.com/news/story/Seven-years-wealth-gains-gone/story.aspx?guid={25FECF6C-D974-4A45-A166-0E8D02684A80}

   ————————

   Was it all worth it, to have “granite counters”?

   The only way forward is to face the pain head on.

   All these games from Washington will do nothing to address the fact that housing prices are still 30% too high, people have no savings combined with a large debt load, and there are no industries remaining to fuel recovery and economic growth.

   A country cannot survive by selling houses to each other — we need to produce things. Automakers? Dying. Technology? Offshored to India. Manufacturing? Offshored to China.

   And not a single politician will face these core issues head on, instead pandering to voters seeking handouts.

6. Jamie on February 12, 2009 5:17 pm

   Income restrictions are unfair. People like me are going to be paying for all this crap but we receive nothing. Instead, the people eligible for this credit are the ones who already don’t contribute their fair share in taxes to live in this society. Why does everyone assume that it should be the poor people who should get to do the spending??

7. kathy on February 12, 2009 5:25 pm

   is this $8000.00 tax credit retro-active to April 8, 2008?

8. Brian on February 12, 2009 5:28 pm

   I think it is a good measure. This isn’t going to turn the economy around right away.

   I look at it this way. I am saving up to buy a home. I have have 2% now. Will have 5-6% at the end of the year. This bill is actually urging me to buy sooner. in 2007, I paid 4700 in taxes. I will probably pay the same in 2008 (800-4700=3300). I am going to save about 1600 in my taxes in 2009 with interest right off (3100-3300=0). So that mean for me….. no federal taxes for 2 years. This is why I will jump in now with an FHA loan now rather than wait.

   If you jumped in early and bought more than you could afford, Too bad. When you buy a house, it is a long term deal. If you are looking to move in 5 years, barring a job loss, you used it as an investment. So it is your loss. For people like me that actually want to buy a home and live there for 15-20+ years, this is very helpful.

   I sat on the sideline for 7 years in my area (southeast PA) because flippers and speculators drove the price to where I couldn’t afford it. My option was rent a 2 BR for $725 or buy a 2BR Townhouse for $300K…. do the math. Now things are finally in line. I am saving up and plan to close on a 180-200K home by spring 2010.

   Homes really should be a place where people try to make money or invest in…. it is a place to live. If you want to invest, there are better vehicles for your money.

9. Gregg on February 12, 2009 6:02 pm

   I have to agree with Brian that this will be a good way to help stimulate the housing market. Please keep in mind that I am speaking from my experiences in the CT area and that your results / experience may vary.

   While some may be disappointed that it will only apply to first-time homebuyers, its a way to get those folks off the fence and make their first purchase and build equity. With restrictions on loans getting tighter it forces the first-time homebuyers to look at properties that meet their needs, rather than wants.

   8k is a great way to help soften the blow of all the expenses that add up after your first purchase.

   The market in this area has slowed recently and I believe part of it was because folks were waiting to see how this shook out. I’ve had my condo on the market for a little under a month with a decent amount of traffic but no offers yet. This will definitely jump-start things.

   Luckily my girlfriend is a first-time homebuyer and the purchase together qualifies us (I did a good amount of research with the IRS to be sure of it).

   We’ll see if any changes occur prior to it hitting Obama’s desk though.

10. Dave on February 12, 2009 6:52 pm

    If you are capable of buying a house, nothing has changed.

    If you are not capable of buying a house, nothing has changed.

    Nobody is giving out credit scores, or offering this tax rebate on the front end to use as a deposit, so just I don’t know of anyone who can genuinely say the tables have turned on a house purchase, because of the tax break that may or may not be offered.

11. Orlando on February 12, 2009 8:41 pm

    There is $500 billion in Option ARM’s that will be resetting interest rates and/or reached 125% cap on loan to value ratio very soon.
    I believe that we will see some severe declines in housing values in next 12 months.
    Realtor’s get ready more pain on the way =o(

12. Jesse on February 12, 2009 10:03 pm

    I understand that this credit will help first-time homebuyers with lower incomes afford homes sooner rather than later. The homes that these people will be buying will be at the lower end of the pricing spectrum. The problem is that the lower priced homes are already selling in the current market. Something needed to be done in order to encourage the sales of higher priced homes. I don’t think this credit is a bad thing, but it will not stimulate jobs like a 15K credit would have for ANY homebuyer who likely would have spent more money fixing/updated new home purchases in the higher pricing spectrum.

13. Don on February 12, 2009 10:20 pm

    Greg,

    Where did you see that your girlfriend (who is a first time home buyer) and you buying together qualifies you guys for the first time home-buyer even though you have previously owned a home?

14. Matt on February 12, 2009 11:02 pm

    He can buy with his girlfriend as long as she claims the credit in her name. I’m in the same boat. Just do not get married in the same tax year that she claims, or you will have to pay it back.

15. Mitch on February 13, 2009 8:19 am

    Just did my taxes last night & recieved the 7500 tax credit
    split between myself and girlfriend. We also recieved gift funds @ closing for our downpayment from our builder through the Nehemiah funds which was taken away by Bush in October 08.Hopefully it turns out that the 7500 does not have to be repaid and we could be looking @ close to 1500 given to us from our builder and uncle sam. God Bless democrats!! Even though I am republican.

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17. Tim on February 13, 2009 8:58 am

    I was going to buy a house because the original 15k was meaningful and was not restricted to first time homebuyers. Since the government has deluted this bill by reducing it to 8k and restricted it to firstime homebuyers I will not be able to purchase a house.

    The government has totally screwed this bill up. They think they are saving money but all they have done is allowed the housing mess to continue because they have not put into place enough incentaves to stimulate the housing market to stop the decline in value. In otherwords they have reduced housing demand by stripping the bill down. The costs associated with stripping this bill down will negatively impact the market to the point the bill is to weak to sufficently address the housing mess which means the government will have to intervien again in the future which will cost much more. The little bit they saved by restricting this incentive to firs time homebuyers and reducing it a mere 8k will be offset by much larger expenses later.

18. Dawn on February 13, 2009 9:46 am

    I agree that the stimulus could definitely have enticed buying….I am curious if Obama knows what the people are saying about this?

19. Gary on February 13, 2009 11:06 am

    Yup, the government has done it again. The point if the bill was to try to stimulate housing sales. I live in San Francisco where wages are higher so I hapen to make about 100k, but I am by no means rich. I am on the fence about whether or not I can afford to buy a home. The 15k credit could have got me in the market, but now the government has made me ineligible. Now all I get to do is pick up the tab for people living in less expensive areas and people who dont really have the money or credit to be buying a house. Didnt we already try this?

20. Mortgage Rates Drop Below 5.0% on Zillow Mortgage Marketplace | Zillow® Blog on February 13, 2009 11:41 am

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21. DebtFree on February 13, 2009 1:11 pm

    Tim writes: “Since the government has deluted this bill by reducing it to 8k and restricted it to firstime homebuyers I will not be able to purchase a house.”

    Tim, if a difference of $7,000 means you “will not be able to purchase a house,” were you able to afford one in the first place? Are houses that cheap in your area, where $7,000 makes any difference?

    Near me, $7,000 about 1% of the purchase price, and is therefore absolutely meaningless.

22. Tim on February 13, 2009 1:45 pm

    Debtfree writes “Tim, if a difference of $7,000 means you “will not be able to purchase a house,” were you able to afford one in the first place? Are houses that cheap in your area, where $7,000 makes any difference?

    Near me, $7,000 about 1% of the purchase price, and is therefore absolutely meaningless.”

    DebtFree, I dont think you get it. Its not about the purchase price. Its not a matter of what one can afford. The 15k can be used to increase the down payment, add to person liquidity, pay for improvements etc. You must be a real bigshot if you can waste 15K like you talk.

    The bill has been compromised by restricting it to first time homebuyers and taking 7k off the table. The decision about the provisions of this bill now be accounted for in my decision about buying a home.
    The way the bill is now contructed it is not a good investment for the taxpayer.

    I’m not going to throw money away. I will now delay my decision to purchase a home. I think I can get the money (15k) by waiting. Housing prices will come down further because the diluted housing bill will be inadaquate to stabilize housing prices.

23. Dave on February 13, 2009 2:53 pm

    Comments like ”now the government has made me inelligible” are rediculous, no laughable.

    You live in the bay area; make 100k, and you still think it’s the governments responsibility to ensure you can buy a house?

    What ever happened to personal accounability, responsibility, and authority?

    I lived in half moon bay for six years, I lived within my means had a nice place, and did it on my own.

    Does a tax credit going from 15k to 8k really stop you?

    No-just a convienent excuse.

24. DebtFree on February 13, 2009 3:29 pm

    Tim, the difference is $7,000, not $15,000.

    I’m certainly no big shot, it’s just that tiny houses (1,200 square feet) in my area are over $600,000 and up. That’s the problem. That’s why $7,000 (or even $15,000) is absolutely meaningless to buyers in major metro areas.

25. jkes on February 13, 2009 3:37 pm

    Dave, lets remember that this home buyer tax credit is an ‘incentive’… its not meant to be a vehicle to “ensure” people can afford a home.

    Personal accountability, responsibility, and authority still goes without saying! Give me a million bucks and I can still be irresponsible and blow it within a week.

    This credit will do two things. Spur home buying and help the economy as some will use if for home improvements or misc home purchases. By limiting it with these income levels and by restricting to first time home buyers, it will do little to accomplish those two things.

    Lets remember that in 2004/2005 home ownership was at its highest (naturally because of the bubble), so you can imagine how many people are excluded from this credit because they are not “first time home buyers.”

    Actually, if you are a “first time home buyer”, you’re probably in better financial shape than someone who is deemed as not a first time home buyer…

    They saved about 20 Billion by lobotomizing this credit. YET they spend 116 Billion to give us all $15.00 extra in each paycheck. I’d love someone to make sense of that… because I’m just not getting it.

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27. Homeowner on February 13, 2009 5:17 pm

    ….the tax credit will only go to those with good credit (ie, a high FICO score of 800) at least as an incentive to buy a home, to get the housing market going again. there’s no free handouts to just anybody.

    ….second, to buy a home with the current stringent lender requirements, you’ll need at least 20% down payment, a track record of stable employment/income and assets.

    ….third this incentive is geared toward the broader market, you folks that live in or dream of buying expensive homes in coastal markets or major cities are dreaming. the average price of homes in the U.S. just dropped to $181,000 so stop the madness about “it won’t help since the homes in your area cost $600K”.

    this stimulus is geared for the masses, not those who want a home in the Bay Area, NYC, DC, etc….

28. HouseBuyer74 on February 13, 2009 6:24 pm

    Homeowner,

    Where are you seeing that a FICO of 800 is needed for this tax credit?

    Also, for an FHA loan you only need 3.5% down.

29. Andy on February 13, 2009 6:57 pm

    Still a lot of unanswered questions. Is the old credit now going to allow us to claim $500. Do we have to file an ammendment?

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31. Ajay on February 14, 2009 2:44 pm

    I closed house in Sept 2008. According to earlier proposal I was getting $7500 tax credit. Now i see that its $8000 bit for people buying it in a period from 1st Jan 2009 to Dec 2009. Wil I get the tax credit? How much?

32. Cindy on February 14, 2009 7:59 pm

    Ajay - it appears you only are eligible for the repayable $7,500 because you bought in 2008. I don’t believe that you need to start repaying ($500 a year) until 2010 though. The $500 will be a reduction in your yearly refund or an additional $500 you owe.

33. Red on February 14, 2009 9:03 pm

    There is no pretty way to do this. People who were out buying in a falling housing market and did what they could to help stabilize the market pay back their 7500. People who buy this year amd will get a better deal on their house keep the 8000 outright. But then you have those who purchased after the market headed south that will get nothing.

    The problem with this is that people on the upper side of the bubble are those that need help. People buying now often do not. Back in 1975 everone needed help.

    Might as will just give everyone some tax money back regardless of whether they buy a house.

34. Mike on February 15, 2009 8:44 am

    Congress failed the American People.More Money was spent on Sen. Harry Reid’s Pet
    Disney to Vegas High Speed Rail Project than the 6.7 billion budgeted for the new $8,000 Tax Credit. I am certain that the tax credit will generate more tax revenue.
    Each home sale generates more employment than a wasteful Gov’t pork deal. A 30 Billion Dollar budget for a $12,000 tax credit for any buyer of a primary residence without a repayment feature would actually pay for itself over time by the economic activity it would stimulate. Had Congress passed this type of measure you would see more activity in our R.E. markets that might actually create some consumer confidence and bring
    buyers sitting on the sidelines back into the market. As a Realtor in So. Md. for over 28 years I came into the market at a time when interest rates were 18%-21% and cosumer confidence was low. I think this Stimulus Bill has lowered consumer confidence for both home sellers and buyers.

35. Bruce on February 15, 2009 10:10 am

    This was a poorly written bill . This tax credit, as well as the previous 7500 credit does nothing to help anyone get into a new home. The credit amount will only be received after the applicant has already closed on a home purchase. If you’ve already bought a home then you didn’t need the credit. If you need the credit, you can’t get it because you can’t afford the home. Perfect “catch 22″. Typical of the morons who are running this congress. By the way, for the earlier entry, why would you think that if you closed on a home in sept 2008 , you would be eligible for a tax credit for homes purchased in 2009. Wait a minute. After looking at the afore mentioned logic , maybe that makes sense after all.!!

36. De on February 15, 2009 12:33 pm

    Does anyone know if I bought a house this year in 2009 but took it on my 2008 return will I still have to repay it?

37. jkes on February 15, 2009 1:20 pm

    “De”, according to the bill, IF you are a first time home buyer AND you bought the home inside of 2009, you can claim the new no-repayment-required $8K credit on either your 2008 or 2009 tax returns. Keep in mind you can only claim it on your 2008 tax returns if you are filing AFTER your close date. Naturally, you’d want to close well before the April 15th tax return deadline. If you already filed your 2008 return, you could file an amendment to it… but it may be easier to wait until next years tax return. besides, most tax software isnt updated yet with the new first time home buyer credit rules.

38. Steve on February 15, 2009 7:03 pm

    Okay…okay… I agree that it is a good idea to give the first time home buyers a little more initiatve to get off the sidelines. But let’s not exclude the rest of society from participating in this stimulus. How about we also extending this incentive to ALL Buyers? Or atleast a portion thereof? Maybe set it up such that all buyers recieve a 5000 tax break, with first timers recieveing the full 8000? And…YES.. it is not actually a tax break if it has to be repaid!!!!

39. Dave on February 15, 2009 7:26 pm

    Steve- Do you hope to penalize current home owners to encourage people purchase homes, or is all this tax money going to come from those that can’t afford a home?

    Where exactly do you believe this giant (and conveniently undefined) sum of money should come from?

40. Mike on February 15, 2009 10:26 pm

    I want the $8000 but cannot afford a home without it for a down payment and closing costs. This is my bad luck though! I read from many the funds should be equal to all home buyers from the beginning of the $7500 tax credit through this year.
    This strongly smacks of SOCIALISM!! I want what you have so we all have the same?? Doesn’t quite make sense to me. Where do we stop seeking what is good for ourselves and start something new, like looking out for each other.
    I LOVE MY COUNTRY BUT FEAR MY GOVERNMENT

41. Garreth Wilcock - Austin EcoBroker® on February 16, 2009 10:12 am

    The plan seems to stimulate, but does not make it possible for unqualified buyers to get a downpayment.

    It does sound like a reward for buyers with adequate down payments and good credit scores.

    It doesn’t sound like a way for “subprime” buyers to get loans, which many people believe is a good thing.

42. Steve on February 16, 2009 10:16 am

    Dave - Those that cannot afford a home are not paying much in taxes so to be brief, the non-homeowner’s are not flipping the bill for the homeowners.
    I prefer to let the market handle itself, however if the govt wants to borrow 1 trillion dollars to stimulate the economy then I strongly favor the use of that money in the most effective manner. Immediate tax deductions - which puts money back in to the hands of the average consumer can be very effective while additionally softening the bottom that we are beginning to see in the real estate market.

43. Suzy Flute on February 16, 2009 2:14 pm

    So far, if they truly knocked it down to $8000 tax credit to first time home buyers, then they haven’t done anything that wasn’t already on the table. I watched as people were actually excited that they might offer it up to any home buyer. That would have been the smarter move. When one person gets a chance to buy up a little, then the next person gets a chance to buy up. That’s what stimulates the economy. Not putting water on a barely surviving fire. I still don’t understand the focus on only doing it for the first time home buyer. I wish the politicians had not decided to water it down to that level.

    However, the stimulus is not directed to people with good credit. They have loosened the FHA loan regulations to where I believe someone with a 580-600 credit score can still get something as long as their debt load is not too high. You only have to have 3.5% down to get an FHA loan. Anyway, if you are a first time homebuyer, it would be worth looking into buying during the time frame they will put on the bill. At least you guys will benefit from it.

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45. Gregg G. on February 16, 2009 4:47 pm

    Another item the new tax credit missed was the removal of the DC exclusion. The old $7500 credit couldn’t be taken by buyers in the DC market if they qualified for DC’s $5000 first time home buyer program. The result is that people considering buying in the DC metro area will now look more favorably on real estate in MD and VA. If two properties are close in price and amenities, the logical choice would be to choose the property that offers an additional $3K in tax credits.

    Good luck DC buyers. Once again, the morons inside the beltway screwed you.

46. Ben Dover on February 16, 2009 5:52 pm

    The government created 100% financing for first time buyers again. If you purchase FHA the 3.5% can be a gift….borrow the down from a friend,family member or real estate agent and then repay when the transaction closes. F.Y.I…. FHA allows seller credit for recurring and nonrecurring closing costs and prepaids!

47. MikeR on February 17, 2009 11:15 am

    I am so confused… So what does this stimulus package have for new home buyers? Is this a $8,000 tax CREDIT or a REBATE- If it is still a Tax Credit then it will have to be paid back… if it is a Tax REBATE then it will NOT have to be paid back…

    WHICH IS IT???

48. Please dont lend to BAD RISK on February 17, 2009 1:00 pm

    whatever the outcome with this credit….i hope the housing/lending industry does not make the same mistake by lending to those with out the means, low credit scores, and measly equity down payment.

    this is basically what happen in the current housing crisis….betting on the poor or those who dont have the income to qualify.

49. Boston Home Owner on February 17, 2009 3:08 pm

    I am absolutely disgusted at the fact that the 2008 people received the shaft in this decision. We prevented a major economy collapse when it was most crucial at the end of last year. I bought the home under the incentive of a home owner bonus for those purchasing april of 2008- July of 2009 and now the new package still requires ME and all others in that bracket to repay the bonus. I think it is unfair, and illogical. I think we as homewoners can unite and fight it! I emailed my congressman…if you are from Massachusetts and bought after april 2008 and before dec 31, 2008 you can email your district congressman.

    Keep in mind- For this to be called an INCENTIVE…why would they make it retroactive to Jan and Feb of 09? That does not make sense.

    Call it whining, but ultimately I am doing something about it and letting congress know.

50. Dave on February 17, 2009 6:34 pm

    That’s an interesting take on it, you’re such an American Patriot you shouldered the burden of preventing the financial collapse of the free worlds banking system by obtaining a mortgage?
    That’s down-right noble of you.

    I’m sure it had nothing to do with getting a sweet deal on a house, low interest rates, and of course, that $7500 tax credit which was sure good enough at the time!

51. Tonna Heath on February 17, 2009 8:34 pm

    There are three legs to the stool on which the future of our economy rests. 1) Housing Market; 2) Financial Markets; 3) Auto Industry. Those who followed the news and heard over and over that these were the troubled sectors of the economy that drove us to the brink of financial collapse. It would seem that the logical thing to do would be to fix these ailing industries. I was not for bail out programs in 2008; however since that was the chosen path,the stimulus package should have been designed to include programs like tax credits for new car purchases or interest charges that work to pull the newly manufactured cars through their sales channels; encouragment like the 15K tax credit coupled with low (4- 4.5% interest rates) offered for a limited time to get buyers off the fence to stablize the real estate markets; and the troubled financial markets need to separate good assets from bad and be given additional incentives to make new loans to creitworthy individuals and companies.

    These strategies may seem too simplistic. The underlying point is we need to first tackle implementing simple stimulus packages that can be quickly withdrwan if they do not work. One can argue that the vast percentage of this bill is not stimulus but spending on special programs and infrastructure, which will not even come online until late in 2010 and beyond Meanwhile the three legged stool continues to weaken and will eventually giveway leaving the economy to truly crash.

    Here’s a good reason to buy real estate if you can afford it. To pay for all these new fancy programs, the government will be forced to print money— China is having problems of their own and is set to offer government debt instruments of it’s own so we’ll have no other choice. That means–you guessed it– inflation. Where’s the safest place to stash your cash to protect against erosion of value? “Hard assets”.which are defined as real estate, gold, diamonds, art, etc. Another thing to consider, if you are like most people who will need a loan to afford a home, buy soon. Otherwise, as inflation rears it’s ugly head, your buying power will be further eroded by higher interest rates. (We need only look to the late ’70’s and early ’80’s for examples when homebuyers faced rates in the double digits.)

    We are Americans. We can and should take control of own destiny. The recent “stimulus” bill is just the latest example of why the government should not be responsible for “spending” your money.

52. K. Lallathin on February 18, 2009 10:53 am

    I’d like someone to tell me the limits on being a first time home buyer. I’ve heard that as long as you haven’t owned a home for 3 years - you qualify. What if you co-owned 2 years ago, but not as a single buyer for 6 years? Would you qualify? I would hope so. Buying a home on one’s own is a lot harder than purchasing as a couple. I’ll hope for the best.

53. Cindy on February 18, 2009 9:04 pm

    K. Lallathin - it appears you’re out of luck. If you owned a main home anytime in the past three years you are not a “first time home buyer” and do not qualify. It does not matter if you owned it as a single or with someone else. Sorry.

54. Doug on February 19, 2009 12:49 pm

    This will have almost no effect in the San Francisco Bay Area or metropolitan areas of California. If you are eligible for the tax credit based on the income level caps, you don’t make enough to afford a house.

55. Wise Guy on February 19, 2009 9:53 pm

    I spoke to my Tax Agent just today and he said as soon as I go into escrow I could file my 2008 taxes and claim the $8000 dollars as well. He also said I would get my return just before I close escrow so that I could use it for my down payment and closing cost if any. This makes sense because after all it is a First time Home Buyers Credit, meaning they will help you get your first home. If I had the money for a down payment and closing cost why then would I need the $8000!!! It would just be greed!!!

56. Morgan Sam on February 19, 2009 9:54 pm

    Did any of the software or online providers like taxact,turbotax etc update for $8000.00 credit

57. De on February 20, 2009 11:02 am

    The IRS had posted the updated first time homebuyers credit, link http://www.irs.gov/pub/irs-pdf/f5405.pdf

    I talked to the IRS and they told me if you took the credit on your 2008 tax return for a home you purchased this year (2009) just file an amended return 1040X to claim the extra $500.

    I hope this helps everyone.

58. Dan on February 22, 2009 8:33 am

    Would I be able to quality for the $8000 tax credit under the following situation?

    I was married in 2002 and bought a house with my former wife. We divorced in 2003 and also sold the house that same year. I remarried in 2006. My current wife built her home in 2004, in which we both currently live. My name has never been on her loan, and she has made all of the monthly payments herself. If we sell our current home and purchase a new home before December 1, 2009, is there any way that we will be able to qualify for the tax credit? My guess is no (unless I qualified for the new loan myself, but I doubt this will be the situation), but I thought it would be worth asking in case there is a way that we can qualify since I personally have not owned a home in the past 3 years. Basically I was wondering if it would be possible to put my wife as a co-borrower and still qualify for the tax credit.

    Thanks.

59. Dawn on February 22, 2009 8:49 am

    Dan–

    My banker explained that if you filed a joint tax return in the past 3 years with your wife and claimed the house interest you would not be a “first time homebuyer.”

60. DON CAMPBELL on February 22, 2009 4:14 pm

    IF I OWN A RENTAL HOME THAT I HAS NEVER BEEN MY PRIMARY RESIDENTS (I NEVER LIVED IN) DO I QUALIFY FOR THE $8000 TAX CREDIT TO PURCHASE A PRIMARY RESIDENTS?

61. Dcamp on February 22, 2009 4:17 pm

    I OWN A RENTAL HOME THAT I HAS NEVER BEEN MY PRIMARY RESIDENTS (I NEVER LIVED IN) DO I QUALIFY FOR THE $8000 TAX CREDIT TO PURCHASE A PRIMARY RESIDENTS?

62. I'm Curious on February 25, 2009 5:12 pm

    For those that purchased a home recently or have financing ready to acquire a primary home, what are lenders requiring as a down payment?

    10%, 15%, 20%+ ???

63. Jessica Klaaren on March 5, 2009 10:59 pm

    I would just like to say, my husband and I after a failed business attempt just over 2 years ago had to file bankruptcy. Today we have good credit and 8 thousand in the bank (ours not the credit) and are as of 4 pm officially homeowners with a 5.75% Rural development loan fixed rate, no penalty loan. There are plenty of incentives out there other than the tax credit. We got our dream home for 86% of the appraised value. The point is, if you are smart and patient, and if you work toward a goal, anything is possible. Oh and there are really good loan programs right now, I mean, RDL loans are used in several areas around the country and they are fantastic. I literally found out today at my closing that I could ammend my tax return to claim the $8,000. I definitely want to do that b/c we will be making over 75K in 2009 and I’d like to get the whole 8 grand, but since our plan hadn’t included it yet, we are going to pay off the 1 grand of credit card debt and put the rest in savings to earn interest until next year comes. I am a Realtor who does market appraisals for banks who are starting the foreclosure process on a house, and they hire me to valuate the property for them to give them an idea of what its worth, if its worth it for them to foreclose, etc. and so many of them have put all of their savings into the house, everything, and the houses just won’t sell for what they are worth, and jobs are lost and next thing you know you are left with nothing. So my advice would be… ask seller’s to pay up to 6% of your closing costs or whatever your loan type allows, ask them to provide a home warranty to cover any problems that may arise, get quotes from 2 or 3 lenders and go with your gut on who’s going to work the hardest for you, and finally, save your money for God’s sake. The kitchen doesn’t need renovated this year. Be Patient, because it can’t hurt you, but it could save you - at least support you temporarily - if the unthinkable happened and you lost your job.

64. Jessica Klaaren on March 5, 2009 11:04 pm

    I’m Curious - FHA loans require a 3.5% down payment. You can have seller’s pay your 6% closing costs, just write it into the contract or your Realtor can do this. RDL loans (must meet income criteria but very easy to get approved and low rates) these are 100% loans and require no downpayment. I live in East TN in a rural area, so our property values are probably lower than most places. I would suggest asking around for a name of someone local - a mortgage broker - and then call them up and ask them, because every company has different lenders and programs that vary between areas and values.

65. Jennifer on May 13, 2009 12:58 pm

    The Real Estate Market will help turn around the economy — Sellers can not move on if they can’t sell and Renters can’t move up if they can’t buy!! I think its a great idea that the $8000 is now available as a bridge loan — it will help buyers get into a first home– I agree there should be income caps and purchase price caps — This is for the people starting out or trying to do better — If you have large enough income to afford a higer priced home you should have enough sense to save for down payment.