The Federal Tax Credits Blog

Archive for September, 2010

Question: If my husband sells me the house after divorce will I qualify for the $8000 first time home buyer tax credit?

My husband and I are separated and divorcing and I plan on purchasing the house from him in the divorce. The house, mortgage and title are in his name only. Will I qualify for the $8000 tax credit once I buy the house since the divorce should be final by the time it is purchased or only the $6500 credit? What would be different if the divorce is not final when I buy the house?

Answer: On the face of it, sounds like you are a first timer.

But tax and divorce law are complex, being a combination of state and fed, so talk to your lawyer to be sure to do it right. You may need to do certain things in the divorce negotiation to solidify your legal/tax position.

NAR Home Buyer and Seller Survey Shows Value of Long-Term Home Ownership

NEW ORLEANS, LA–(Marketwire – November 5, 2010) – Home buyers today have affirmed a long-term view of home ownership, the typical seller is experiencing positive returns and the vast majority of home owners see their property as a good investment, according to the latest consumer survey of home buyers and sellers. The study was released here today at the 2010 Realtors ® Conference & Expo.

Question: Can I claim the $8000 first time home buyer tax credit if I convert my home to a two-family dwelling?

Two hypothetical questions:

1) My home that I bought last year has long been a one-family home. I’m considering converting it back to a two-family home (it was long ago) and taking on a renter. Can I keep the $8000 tax credit?

2) What if I purchase a second home closer to work, but keep my first house as my primary residence? I would keep my own apartment there (as my primary residence), while still renting to the upstairs neighbor. Can I keep this tax credit?

Answer: If you purchase a home which becomes your principal residence, and then after the purchase divide it into two living units and convert one to a rental unit, then the original property is no longer your principal residence. There is no provision for a partial payback of the credit. If a property is converted to a rental property, in full or in part, the entire credit is paid back.

As for your second question, your principal residence is where you spend most of your time. If you live in the second home during the week for example, and your apartment during the weekend, then the second home is your primary residence and you will have to pay back the full $8K regardless of any rental activity. If you still spend most of your time at the apartment, the purchase of another home has no bearing on the FTHB credit.

Current interest rate tops federal tax credit

CLIFTON – With the $8,000 first time buyer and the $6,500 repeat home buyer tax credits offered by the federal government behind us, many buyers may feel that they missed a once in a lifetime opportunity. To the contrary, the best opportunity for all home buyers exists today, with the lowest interest rates in over 50 years.

8000 First Time Home Buyer Tax Credit

Gateway Funding Honored by Pennsylvania Housing Finance Agency as a Top-10 Home Loan Lender

1888PressRelease Gateway Funding Diversified Mortgage Services, LP, established in 1994, is one of the largest privately-held mortgage companies in the United States.Harrisburg, PA – Gateway Funding was recently honored by the Pennsylvania Housing Finance Agency as one of the top-10 participating lenders for homeownership programs. A banquet was held on March 16, 2011 at the agency’s …

Question: Can I get a new mortgage w/a Tax Lien?

Help! Is it possible to get a new mortgage with a tax lien on credit file?

We make over $300k a year and are coming out of a financial mess we got in w/a bad real estate market in Colorado. We are back on our feet and credit scores are coming up, no debt etc.

We are ready for new home purchase but now have the tax lien on our credit file.

Is there anyway we can get the tax lien rolled into a new mortgage? If yes, how do we find a lender who will do this? Our income is 100% verifiable and we are already living in the house. The owner let us do an extended close to end of October.

We need to get this done asap!

Thanks!
Josh
Thanks for the quick ans! The issue we are just renting in the current house so I don’t think we can do a refinance?

Would also be interested in a lease/purchase for up to 12 months if we can find an investor who will do it? We have already put down $10k in earnest.

Answer: On a refinance, yes, this can be done. In fact, it’s going to be a condition of the loan in all probability.

Just talk to some lenders. I recommend you speak to no less than three before choosing one. Talk to as many as you have the stamina for. Start the conversation with “We want to refinance.” and then see what they do next. Reject any lender representative that tells you anything before asking you questions.

Wajahat Ali: Fighting Wells Fargo and Foreclosure

Could it be that the best chance to save a young family from foreclosure is a 28-year-old Pakistani American playwright/attorney who learned bankruptcy law on the internet?

Question: 2009 first time home buyer tax credit?

I am aware there is an $8,000 dollar tax credit available for first time home buyers. I am currently buying my first house with my Fiance. Both of our names will be in on the loan. She is also a first time home buyer. We will not be getting married until the end of the year.

If we file taxes separately next year can we both individually file for the $8,000 tax credit? So we could potentially get $16,000 back? Or is it an $8,000 credit per house no matter how many people partner to buy it?

Answer: It is 8K$ per purchase. I would try to use it on the income that is the highest, it would benefit most that way, could possibly drop you a tax bracket or two.

Dismal Home Sales, Despite Cheap Prices

Home Sales in 2010 on Pace To Finish As Bad As 2009

First Time Home Buyer Tax Credit Extended for 2010