The last few months have seen an increase in home sales to first time homebuyers, as well as a slight improvement in the real estate market as a whole. A lot of people feel that this is largely due to the first time homebuyer tax credit that the Obama administration passed earlier this year. The measure, which was passed as a part of February’s stimulus package, gives first time homebuyers tax credits of up to $8000 when they buy their first home. It certainly is an attractive offer if you’re looking for a home anyway – and we have several friends that have bought homes this summer because it was such a great deal.
A couple of weeks ago I wrote about how the time that was available to take advantage of the tax credit was quickly running out. The credit is only applicable to home purchases that have been completed by December 1st, and since most home closings can take anywhere from 30-60 days, if you haven’t already put in a purchase agreement on a house by now, you may be out of luck!
For a lot of people that is going to come as a big shock and a disappointment, but all hope is not gone! Congress is already talking about extending the program, and possibly expanding it to all homeowners and increasing the credit to $15,000. It is far from a done deal, but it is currently being debated by our legislators.
the National Association of Realtors wants to expand the tax credit to $15,000, and it wants to allow all buyers to be able to qualify, not just those who have been out of the market for three years, according to The New York Times. The $15,000 figure is actually the amount that the credit’s initial sponsor in Congress, Sen. Johnny Isakson, R-Ga., a former real estate agent, had wanted. Now Isakson is introducing a bill that would provide up to a $15,000 tax credit to any buyer who stays in their newly purchased home for a minimum of two years, according to the Times.
So Congress currently has bills that are being put forward that would extend the tax credit, increase it to $15,000 and allow all homebuyers (not just new homebuyers) to take advantage of the credit. Whether this bill will pass is another matter. It is currently up for debate, and the president is debating whether continuing it would be a good plan.
Asked about whether the Obama administration would consider extending the credit, White House spokesman Robert Gibbs said the administration’s economic team was evaluating the impact on new home sales and would make a recommendation to the president, according to the Associated Press.
The tax credit has been expensive, but it has arguably been successful in helping the ailing real estate and construction industries survive in recent months. However, like other supposedly temporary tax credits, the First-Time Homebuyer Tax Credit may end up being called the Perennial Homebuyer Tax Credit.
One of the biggest problems the bill faces is the price tag. Estimates say that it could cost anywhere from $50 billion to $100 billion dollars. Whether that is worth it right now is debatable.
Only time will tell if Washington will decide to continue the program. If they do I can already hear all of the people complaining that they “only got $8,000”, or from others who want this credit to become permanent – not just a one-time deal.
UPDATE: New First Time Homebuyer Tax Credit Bill Extension Introduced
A bill introduced last night after I wrote this post would now extend the tax credit for another 6 months, while not changing the the amount of the credit, or who is qualified to receive the credit. From housingwire.com:
A senate bill introduced late Thursday would extend the $8,000 first-time homebuyer tax credit for six months after its current November 30 expiration date.
Maryland Democrat Sen. Benjamin Cardin introduced S.B. 1678, and it is co-sponsored by senators John Ensign (R-Nev.), Johnny Isakson (R-Ga.), Senate majority leader Harry Reid (D-Nev.) and Debbie Stabenow (D-Migh.)…
The bill would not change anything on the tax credit except its expiration date, although at least one housing industry group is calling for an expansion of the credit and another, the National Association of Realtors (NAR), has urged an extension of the tax credit.
So if this were to particular bill were to pass, the tax credit would be extended, but not increased or changed to include all homebuyers.
UPDATE: 11/5/2009
Bill passed by Senate and House to extend the $8000 tax credit. Now only needs to be signed by the president. Extends the bill to include a $6500 current owner homebuyer tax credit.
What do you think? Should the tax credit for homebuyers be increased to $15,000 and be expanded to all homebuyers? Will the effect it has on our economy be worth it, or will it just be another over-reaching expenditure of taxpayer money? Would you rather they just extend the current program? Let us know your thoughts in the comments!
Perhaps they could apply it retro-actively to everyone who bought a home in the last 3 years (so I could get in on it) to stimulate the economy further? And then everyone who “only” got $8,000, or $7,500 before that, could get a tax credit for the difference. Might as well go whole hog ;)
I think this is a terrible idea. At some point, we can’t keep bailing out industries! All we’re doing is bankrupting the country as a whole.
As someone who is having a new home built, I think it’d be great to get $15k!
However, I just don’t see how the gov’t can keep spending money like this without some major repercussions to our nation as a whole and to us as citizens.
Jason @ Redeeming Riches´s last blog ..Friday Finance Round Up – September 18, 2009
I am getting $8000 and won’t be upset if I “miss out” on $15,000, I am becoming upset with how much government spending is going on…
ChristianPF´s last blog ..Homebuyer tax credit extended, increased, and open to all homebuyers?!
This is insane. The government isn’t supposed to keep industries going; it’s supposed to protect us from outside invasion.
If this ‘credit’ became permanent, then the price of all houses would eventually go up by $15,000 because of the ‘free money.’ People would ask more for their houses because they know buyers would be thinking they get such a large credit that they can afford more house. The market has a way of equalizing itself and such a large credit would become useless after a few years.
This is a horrible idea!
The government needs to stop giving away my money.
There are already huge tax benefits for homeowners, this is getting ridiculous…
OK, I’m cheating here by posting the same comment here as I did on ChristianPF, but I can’t think of a better way to say it. (For legitimacy I’ve included an add-on at the end though.)
I can’t escape the fact that this will bring us full circle to where we were three years ago, with an overheated market supercharged on 100% financing.
A $15,000 credit will cover a 5% down payment on a purchase up to $300,000, meaning you can use a 95% loan plus the credit to effect a zero down purchase. Since the median price of a house is around $200k, we’re talking about a LOT of zero down purchases on the horizon.
Yeah, it may juice the housing market for a time, but then we’re back to people owning houses with no skin in the game.
Add-on: It’s been my suspicion from the beginning, that once added to the process, the homebuyer tax credit would become more or less a permanent fixture in the housing market.
Kevin@OutOfYourRut´s last blog ..Cashing in on Seasonal Jobs and Business Opportunities
actually the credit cannot be used for downpayment, you have to file your taxes and thats when you would get the credit so your theory on another plunging market due to housing is incorrect.People who want the credit have to wait to file their taxes but would have to have purchased the home already.
This is not completely true. A First Time Buyer’s course will answer all you questions and concerns about the 8,000 credit cut. Yes, you can use this $$$ for deposits as well as closing cost. Depending on the bank you are working with, the BANK will up this $$$ not to you, but to the ‘sellers agent’ and when one does file their taxes you are responisble in paying back what the BANK gave you, to help you purchase, what ever is left over is your to keep :)
Although the tax credit is a great incentive to buy a home, it should NEVER be the only, or even primary, reason to buy or speed up your time table. Home ownership is a huge resonsibility that will remain long after the benefit of the tax credit is gone. If you are planning to buy now, great, take advantage of the credit. Otherwise, don’t be pressured to rush into what may be the largest financial transaction you ever make.
I totally agree.
This is so true! Say some more please……………… It is a big deal!
& a large investment :)
A $15,000 credit will NOT cover the down payment, as you do receive the money until AFTER you close. You cannot use a 95% loan plus the credit to effect a zero down purchase, since again, you do not receive the credit until AFTER you close (and after you amend or file your taxes). Buyers still have to have their own down payment.
I have an idea, lets just give the whole country a bunch of cash, actually I think I wrote about that once. If we had scrapped the bailout, scrapped cash for clunkers, and scrapped this crap we could just cut a check to every Tax payer in America for a couple thousand dollars. Oh and budgets, who needs one just spend it all baby… At least some new homeowners will get a little cash.
Kyle´s last blog ..How to Stop Getting Credit Card Offers
SERIOUSLY!! I can only agree with what everyone has said here… our gov’t spending is past laughable, it is atrocious.
It is time for American’s to take their gov’t back. This is way out of control.
Matt Jabs´s last blog ..Should I Invest While Still In Debt?
Sorry, but I totally disagree
I don’t think that it is fair AT ALL! Where was this great deal when I was buying MY first home?? We bought our 1st house in 2000 at almost 8.9% interest, and everyone thought we were doing great, because alot of people were paying 10.5-12% interest. I don’t feel that a tax credit is doing anyone a favor; if anything, people are buying more than they can afford, because of the mindset, “well, I am getting such-and-such amount back…..”
This is really going to come back and bite some people in the you-know-what, and it is definitely going hurt.
I agree with Matt Jabs…our government spending is waaaay past laughable…..
A.Marie´s last blog ..
Some claim this credit is unfair to those who made purchases before such a credit was introduced and that they had higher interest rates and such. My comment to that is that the people who are purchasing now are taking a risk. The economy has been way down. Many of these people are making purchases now with the fear they might not have a job in 6 months or so. They may have been dealing with pay cuts. Yet the money being offered to them for purchasing is to keep the economy going. So, essentially…the risk takers (aka homebuyers) are helping to keep the other homebuyers in their homes and at their jobs! In essence, in previous years, people became homebuyers without the “real” fear that the economy might collapse. Buying a home is no easy deal in itself and there will always be sacrifice and fears. Add the instability of our economy into that mix and I commend those willing to tread in these murky waters. Not to mention, there is a nice chunk of homeowners who bought homes in previous years, knowing full well that they really had no place. Seeking the help of seedy loans and higher interest rates while the others waited it out and stabalizing their situation before purchasing. All of those involved in the seedier practices have caused a dilemna that we all have to pay for to correct.
As and If the housing market get’s worse the credit’s chances of being extended (and increased) improves. Isn’t that sad! But the credit SHOULD NOT be the reason people buy a house.
Andy´s last blog ..Successfully Buying my Home – A Real Life Journey
As someone who is in the process of purchasing my 1st home, I think the 8k is more than enough of a bonus. I would definitely not mind them extending the time frame just a little though, as I know others like myself, who are pushing the clock trying to get closed, just to even get the added bonus of owning their own home.
Amanda,
I too im feeling the pressure and if there is no extention, there will be no more looking for “house” for me, sad to say but its true. I know you can understand since you are in the process of buying as I am. Its very frustrating
Totally agree! If the tax credit is not extended, I will not be purchasing a house in the near future! It is too risky, and to purchase with no bonus incenitive is out of the question in this unpredictable economy!! Stand still people, I am sure after the tax credit deadline has passed the housing market with plumment again!! All this anxiety of trying to beat the deadline is like a game of “Racing with the Devil!”
The first time home buyer tax credit should be extended. Here are my top seven reasons why in the link below.
Chris Dowell´s last blog post .. The Top 7 Reasons the $8,000 First
Time Homebuyer Tax Credit Should be Extended
Chris,
I hope you dont mind I re-posted your Top 7 Reasons. LOVED IT.
Hmm… this is a tricky one. The practical part of me says the government can’t afford to be giving away money left and right like this. (Seriously, isn’t there someone sitting there with a calculator tallying this all up?) The other part of me is looking to go from a two bedroom house to a 4+ bedroom house in the next year or so, and would find that a great big help considering the value lost in our two bedroom house in the past year due to recession, etc. Hey, by the way, congrats on approaching 4,000 comments–you’ve got a great blog!
Jessica W´s last blog ..This Saturday 9/26 Free Museums Day!
I don’t understand why people are talking this way.. Well it’s not the Govt’s fault that the real estate business in America screwed the world by screwing w/ people and banks automatically affecting every continent. Now they are trying to fix it, why in the hell would the govt want to extend it by just giving people money if they’re not seeing any progress. We are currently looking and we can see the market is getting better thanks to what? Thanks to people buying because people want $8,000 tax credit if they extend it to $15,000 people will rush more. Meaning the banks are loaning people money = interest and money coming in for the banks of course = economy boosting. Well in order to make money you have to give money…
I think that $15,000 is a ton of money to be giving out! I don’t think that we need to go that far to get into more debt to boost the economy. But I do think that extending and opening up the $8,000 to all home buyers is a great idea!
Do I like our Gumm’nt using a fertilizer spreader with our money? No
Are they to blame for the economy? Yes, they were the first rung of a long ladder of rungs (wrongs), but that is a longer explanation that is needed here.
Compare the cash for clunkers deal’s success to the housing one. Big difference. C for C’s started and ended in what, 4 months or less, when it was supposed to be a year at least. I think it shows good restraint on people’s part that the housing program has not been rushed into. Now there is a caveat as to why the home credit has been slower too. Mortgage Co’s are no longer allowed to use ‘in-house’ assessors to value homes, which puts the value of homes at lower amounts than the loans being sought, resulting in borrowers having to come up with larger down payments to get the home value down to what a 3rd party assessor decrees. This too is somewhat more involved than can be explained here.
Extending the Home credit as it is written now won’t cause a sudden rush of buyers. Increasing the amount might, which would not necessarily be a good thing. Leaving it as is, won’t present a problem in and of itself. Now down the road, ALL of the spending is going to come home to roost in a big way, like that of the early 80’s when inflation was a killer 15%. Don’t know how many of you are old enough to remember or know about that time period. It was a HOOVER, as in major suckage!
Then Ronald Reagan came and utopia was restored. Exaggeration? ok, somewhat, but if it had not been for him (administration) at that appointed time, I shudder to think where the world would be right now, and where our nation would be politically, economically, socially, morally. Yes it’s bad now, but could be much worse. But our man now, is trying hard to head us backwards into the chasm Reagan Exodus’d us away from.
I think at this point we should just extend the time. Maybe in a couple of yrs after we have actually seen the results of the $8000 tax credit – are the people that benefited from the $8000 actually keeping their homes, has it helped the housing market, etc. Then if it’s good results then increase it to $15,000. Let’s not be selfish or bitter because you only got $8000 and neighbor got $15000.
Cookie,
8,000 is better than 0 money. 15 sounds nice but I believe 8,000 as a start will help families that want to buy homes make it happen.
I hope your not implying that this Tax Credit lives on forever. We should be dumping money into the Social Security coffer or something that would better America as a whole not individual citizens.
Even though I am looking for another house and would love the $15K from Government, I think this is not a good idea long term , reasons are
1) This money is going to be loaned from somewhere by government and most of this money comes from Social Security reserves
2) This will encourage/motivate buyers who are looking for short term gains and make it difficult for people who need the house , Because the $15K from government will be diluted if this extra amount will up the house prices due to mad rush in buying second homes
3) $15K will motivate more users to buy houses, however believe it or not there is a huge % of population in US who you can call financially ill literate. These people can be provoked to buy homes due to this tax credit and will end up unable to pay mortgage few years from now. This is classic, If you know how the interest free mortgage loans resulted in bubble that burst later.
So the point is Govt should spend the money wisely and not just throw the money out there which will create a bubble and take US into another deep recession few years from now
I think they should extend the first-time homebuyers credit to six months after Dec.1st. Then after that they could end it. I think six more months of it will help the real estate business.
I have been a homeowner since 2001 and I got married in 2008 where my husband has never owned a home. As a couple we have missed out on the tax credit of 8,000. But I agree there is no reason to increase the credit to 15,000 when the current 8,000 credit is doing our economy very well. Why not allow ALL homebuyers take advantage of the 8,000 tax credit and extend the dead line six months from now. That way you have buyers making there closing dates, banks should have enough time to get materials ready for closing, and everyone can benefit. I do not believe in something being handed to me. We as people should save for our house that is what makes a house even more MINE, cause I worked hard to save to get what I NEEDED and not what I wanted. I believe that is why the housing market is where it is we make purchases based upon what we WANT and not what we NEED.
I dont think they need to increase it, i would just be thrilled if they opened it up to everyone, not just first time home buyers…i have no plans of moving, but i am a real estate agent, and there would be so many more people buying homes if the 8,000 dollar tax credit was opened up for ALL, not just first time buyers–whom i have found most of the time cant qualify for the loans anyway. if they want to make a difference, they should just opened it up to everyone, that would be a big help. That is what they (Congress) should be aiming for.
What can our government possibly be thinking ??? We are going to be sooo in debt. Industries need to bail themselves out. Our gov’t needs to get out of the business of autos and banks and housing and providing health insurance. Our great grandchildren will be paying this money back. You always value what you save for and buy. In a couple years people will just walk away from these houses too…. only extending this mess longer…you’ll see. Other countries cut back in bad times…..we just continue to spend beyond our means
I say extend the first time tax credit, keep it at $8k or lower it, but remove the income cap.
I may be biased because I’m a first time home buyer and really hoping for an extension on the $8,000 tax credit up to that 6 months they introduced recently. First time home buyers really need that help to purchase their first home. They have no equities, and most of us have no investments that are making us a lot of money yet to help out. In regards to a $15,000 tax credit for all homebuyers…though that would still benefit me personally, I don’t think it’s a good idea to do that.
The $8K 6-month extension is perfect. Otherwise this heap of cash I’ve saved (I haven’t found a home in time) will STAY saved.
Dismiss the 15K if you like, but keep the 8K. Whatever it takes to extend the deadline. The credit is precisely what got me into homebuying!
I believe the 8,000 credit cut SHOULD be extenting for ALL first time home buyers, an increase of 15,000 would also be a plus! I strongly believe that there are many individuals trying to repair their poor ‘credit’ this year. Extending this bill will only help families to continue to seek out the American dream!!
I personally have taken a great interest in this incentive and have even completed taking a “First Time Home Buyer’s course” because I to want to own a “home” I can call mine…… I have been diligently looking at many homes since July, 2009. Do I feel as if I am running out of time, yes! As others feel the same way. The pressure is on. This is a big inventment and it should not be a rushed process. I really hope that the deadline is pushed back at least a year. I have put in much time and efford into this stressful situtation. If this bill is not considered many families including me will have no other choice but to stop the search in buying property this year. Many individuals are counting on this money to assist us in purchasing. This year I have seen how so many families who WANT to make a difference are trying to buy a home so aggressively. Families want to make this happen, however we need the extra time and $$$$ to help us make this happen. Again, this is one of the biggest inventments one can make and it should not be done under so much pressure due to the soon coming expiration date. Give us the extra 6 months to a year and include the additional 15,000.
Ps. Let me buy my first home
Trinity
Massachusetts
Seriously, your looking for a home because A) you need to move out of Mom & Dad’s B) you got a job somewhere where rentals cost more than buying C) Your family has grown and you need more space. So if there is no tax credit, which one of these reasons to buy a home goes away?
Just a thougtht to ponder for all of those who say they will not buy if not extended.
The Top 7 Reasons the $8,000 First Time Homebuyer Tax Credit Should be Extended
The Top 7 Reasons the $8,000 First Time Homebuyer Tax Credit Should be Extended
7. All of the labor delivered through the sale of a home is LOCAL labor
6. Real Estate transactions generate more than 17% of the GNP
5. Ongoing real estate sales allow the market to redefine values that were over-inflated
4. Foreclosure properties that might otherwise stay on the market longer, costing taxpayers and lenders millions more in maintenance expenses, are sold NOW!
3. The tax credit encourages Buyers who might otherwise hold-off, to purchase a home now, when prices are slightly depressed, enabling purchases that deliver greater equity at time of purchase
2. Delivering the tax credit encourages Sellers to purchase new homes, doubling the benefits to all involved
1. 17+ businesses and affiliates generate income for every home sold in this country, including Realtors, title companies, property and casualty insurance agents, attorneys, mortgage professionals, builders, developers, materials providers, heating ventilation and air conditioning professionals, appraisers….and many more
Extending the $8000 First Time Homebuyer Tax Credit makes good sense for the consumer, for the professionals involved, home seller and buyers, and our economy as a whole.
I dont ask for much, 8,000 it fine with me. I can work with that. Extend, Extend away…….
We fall into that category that Trinity and other people seems to fall into also. We are ready to purchase our first home!! Did you know that and I think it was partly the feds doing, the required credit score use to be below 600, the requirement was changed just this last year to over that 600 mark by 20 points, that is for an FHA loan.
BUT, we seem to be stuck in that gray area. Isn’t it ironic that when some people, good, hard working people are ready to purchase, they suddenly can’t!! It’s frustrating!!
SO, yes we are all for extending the tax credit for ‘first time home buyers.’ The people who have had their opportunity to purchase a home, aren’t they the ones who qualify for refinancing or should be able to use the equity in their homes to do any repairs that are needed.
IT”S TIME the rest of us be given a chance to
– – – – – ALLOW US OUR – – – AMERICAN DREAM!!
I would say that the Tax Credit goes away and the underwriting rules change to allow for more people to qualify for a FHA loan. Now that would help more people into the market without jeopordizing our kids futures.
I am a divorced, single mother. I am in the process of purchasing my first home. Unfortunately, if they do not extend the tax credit date, I will not get it because it takes so long to close and there are so many hoops you have to jump through. I would love for them to extend the credit because after I file my taxes in January, I can use the tax credit as a means for some additional financial breathing room. I think that if they extend the date for 6 months that will be great and if they increase it from 8k to 15k, our life would be even better. I could really use any additional money for future endeavors with my child and my career. By increasing it, the government will also help those of us who are single parents and business owners a way to pay it forward in our communities. If they decide to extend the date and increase the money, life as we know it will be FABULOUS!
Yes, Please revise and extend the plan to include everyone. I really need to move out of my condo and into a townhome. I’m not behind and I don’t have an inflated rate but I can’t continue to live with families running over my head. I need sleep and peace! I also need a backyard for my dog and I’ve just out grown this place. i’m being punshed and I’m tired of it. My credit is great and my job is secure yet this current bill does not help me. As soon as it opens up to everyone I’m renting the condo and moving on up.
If you can afford to keep your condo and rent it out, you don’t need a gov’t Tax Credit.
I am a first time home buyer and WILL NOT be applying for the Credit simply because I don’t want to be one of the people who will be to blame when the USA defaults on their intrest payments to countries like China.
The bleeding needs to end.
I really hope they do!!!!! Me and my husband have 3 kids and we are trying to buy a house for the 1st time the only reason we are is to get the 8,000 to pay some other thing off and that’s a good thing if they don’t it look like we will never have a home of our own….
I STRONGLY FEEL IT SHOULD AT LEAST BE EXTENDED. MY DAUGHTER IS IN THE PROCESS OF BUILDING A HOUSE AND IT PROBABLY WILL BE READY FOR OCCUPANCY MID DECEMBER TO LOOSE OUT BY A COUPLE OF WEEKS WOULD BE A REAL DRAG.
Wow! Some of these comments are so contradicting. If you are a first time homebuyer the credit should be looked at as a bonus to help out! This should not be an excuse to raise your price up by 8000! Look at the people who are in trouble, in foreclosure they did it to themselves. Half of the people on here making comments are exactly the same way! “I want to get a 4 bedroom, because it’s bigger then my 2 bedroom” Before you jump ahead and make a leap of taking on another huge mortgage don’t you think the two bedroom is good enough! Why don’t you add on! People are so unsatisfied with themselves that there will never be anything good enough for them and they will always have to complain about something!
If you are looking for a house. I really hope your not looking for a house just becuase you would get 8,000 dollars! I hope you all know the stipulations that go along with that 8000. Some banks are different but to get the 8000 after you buy your home, they will require you to have all of your credit cards paid off! plus 2000 in your account with proof! before you even qualify!
Now If your that person out there that is relying on an 8000 dollar credit you better make sure you can afford your debt!
I sold my home and could only afford a mobile home for 25K. three years ago. Now that the homes are down, I want to buy one, but I am retired on SS. I could if this tax credit goes through. I do not qualify because I own the mobile even though I do not own the lot. So yes, I would love for it to pass and I think it will move alot of homes
You must understand that this is a tax break. It is money that the government is not getting their hands on. This is money that is allowing first time home buyer to purchase that would not purchase if it was not available. Without this incentive the housing market will slow to a hault. The first time homebuyers market is 60% of all purchase according to NAR today. You must understand that the sellers of these first time homes purchase a higher price home and this move the market. Home building makes a huge difference in the economy and this is one move that the Government can make that will keep the money in the economy and create jobs in the building industry as well.
This is not government spending… it is government not collecting taxes… that has to be a good thing!
My understanding is that this is a refundable tax credit – so if your tax liability is 100 dollars, you would stlll get a $7900 check. You owe $6000? You get a $2000 check. No tax liability – you get it all. So really it sounds like government spending to me..
one last comment…. it is hard to get a loan today. The first time buyer has to have great credit to purchase a home in this market. The $8000 dollars is just an incentive to purchase and not rent… the American dream and usually it is a young couple that is excited about home ownership…
Not true. I am purchasing a home for the first time and my credit score is in the low 600s and I still qualified for a FHA at 5.75%. You just need to look around. There are many small banks who are investing in their communities.
Stop the gov’t spending of my family’s future. We already won’t have SS and have to rely on investments to retire. Next our investments will be so heavily taxed we will never be able to retire because the gov’t will need the tax to pay China back for the loans taken out today.
My husband and I have been trying to buy a certain house since June. It was a short sale, our offer was “accepted” twice and then both times put on hold. The redemption period ends this week on the home and it goes into foreclosure. We still want this house, but fear now that we have to start over again and deal with the bank directly. All this time we thought we qualified for the tax credit, but because we own, and live in a mobile home, we found out that we don’t qualify. We of course, would love to see it opened up to all buyers. This short-sale/foreclosure deal has been a complete nightmare…we need some hope that we will be getting our house and $15,000, would be a blessing!
There are a lot of assumptions here for the reasons people want the 8000.
For me, as a disabled vet I could use the money to modify the house I buy. I can afford to buy, i have a VA loan, been pre qualified. Stop lumping everyone into a single group of money hungry deadbeats who are irresponsible about buying a home. Do you have any Idea how much money our government has GIVEN AWAY to other countries that have no intention of paying us back? On a un-winnable war? Where the rich profit on our young men and woman putting themselves in the line of fire under false pretenses? Look at the BIG picture for once. At least the money stays here. I could write a book about it but i’ll end it here. Extend it and keep it away from big corporate fraud.
My wife and I purchased our home in April 2009. But,even though I was a first time home buyer,we didn’t qualify for the $8000 because my wife owned a home(we married in 2008)in the previous 3 years.(we figured this was a slap-in-the-face to married couples with the same predictament. But oh,if a couple was fornicating(living together) and the situation was the same,they could have gotten it,just put the house in his name) Anyway,does anyone know if this will be retro-active. We would love to even just get the $8000.
I wrote a book, deleted it, wrote another and deleted it again.
I can’t seem to get over the people who think that the Tax Credit will help them buy a house. To use it to buy the home for closing costs you’d have to find a bank willing to do a bridging loan. I think that enough is enough. Get a FHA loan, 3.5% down. If you can’t come up with that, then you really are not diciplined enough to keep a mortgage. There should also be a requirement that the Pre-Quals that banks do include all of the taxes and insurance that also must be taken into account per month.
The Tax Credit is only forcing homes to sell cheaper this month because sellers are willing to take low-ball offers on their property because they don’t know if any new buyers will be out there on Dec. 1st. Also, don’t listen to the hype of the NAR. You must always look at the Seasonly adjusted stats. Typically Nov thru Feb are “slow” months. I don’t know what affect extending the tax credit will do for that. How many people want to move during Thanksgiving or Christmas?
Instead of providing the Tax Credit, the gov’t should be waiving the FHA MIP amount. I get a Tax Credit of $8000 later but today I have to pay $4600 in a Insurance Premium to the Gov’t for the FHA loan? What is the sense of that? What about not requiring the premium thereby requiring less funds to close allowing more people to be able to afford to buy a home.
I am all in favor of going back to the “Re-Payment” Tax Loan vs the Tax Credit. That way I know my taxes in the future will not need to rise because of a silly scam the Gov’t is doing with this Tax Credit. The Tax Loan gives the economy the infusion of cash it needs but also limits the liability the Gov’t has with getting more loans to issue the credit.
If they extend it I hope they go back to the tax loan. If they increase it, I will be writing letters and calling my State’s representative and ask what the plan for the future will be when the US is under such heavy debt that it will default on its loans to Gov’ts like China.
What the NAR doesn’t also tell you that the percentage of First-Time Homebuyers who purchased a home this year didn’t do it because of the Tax Credit. I have to find the source again but I believe it was somewhere around 80% would have done it anyway. Another 10% were undecided on purchasing this year vs next year but decided to do it sooner to get the credit. The reason they were going to wait, they felt the market hasn’t hit rock bottom but the tax credit offers a buffer if the home loses some value. The remainder did it only because of the credit. The numbers are not exact but it was a poll done and the number of people who would have bought anyway was well over 50%. So really how did this incredible national debt help us?
yes i think increasing the tax amount and allowing anyone that makes a certain amount a year to be available to it! It would definitly boost the housing industry and help those that never thought they could afford a home to make their home buying easier!! Definitly!!
My wife and I closed on a home earlier this year, but did not get the credit because she’s owned a condo since 2001. Does this extension apply to us even though we closed earlier this year?
I am a first-time home buyer, she is not, so it sounds like we should be able to apply for the $6,500 credit.
I don’t believe the new $6500 credit is retroactive. As always you’ll want to verify that once the final language of the bill comes out.
if they do not extend tax credit i will not be able to buy my first house, sure hope they extend
Why don’t they just admit that this money IS our tax money that we’ve been paying since you start working at a young age. So they’re just giving it back to us because we freaking pay soo much taxes, that’s all that this is…it’s money that belongs in our pockets anyway…
We pay so much taxes in US it’s not even funny. So why not give it back to us.
they can make it whatever they want they are not going to actually pay it I am 20 weeks and waiting now they tell me they need something from me but will not tell me what
What’s funny is all the complaints of govt spending are likely the same people that say “cut our taxes!” To qualify for your home you have to have a JOB! Which means you PAY taxes. Most of the first time home buyers are likely middle class folks and not the big wigs that have the resources to figure out loop holes to actually pay less in taxes. Yet no complaint about those folks – that’s just capitalism right? Plus, the tax credit is up to 10% of the loan amount of $8k – whichever is less. Given that you can qualify only for a loan in proportion of your income, the tax credit is also proportional to the income of the borrower.
BTW, I don’t have kids, I’m tired of all you child rearers taxing me to pay for your kids education. I’m sure I’ll get a response about private school or homeschooling – so if you’ve ever been to the public library, gone to a public park – guess what, that’s tax money.