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Archive for the ‘First Time Homebuyer Tax Credit’ Category

Question: Housing Bill – New home tax credit: Impact on single salary over $75K?

I’m not sure how this Bill (HR 3221) works – I will be buying a house in the time period defined by this bill – but my salary is about $96K. It mentions “phasing out” over $75K. Will I get the $7,500 tax credit as a first time home buyer? Can anyone explain (simply – the more I look this bill up the more confused I seem to be sadly) what this would mean to someone in my position? Thank you very much.

Answer: This so called Tax Credit, is nothing more than an interest free loan. This credit has what the bill calls a “recapture” period where you have to pay the IRS back over the course of possibly 15 years the full amount of the tax credit. For example, lets say you qualify for the full 7,500 credit. The legislation says, “if a credit under subsection (a) is allowed to a taxpayer, the tax imposed by this chapter shall be increased by 6 2/3 percent of the amount of such credit for each taxable year in the recapture period. This means that 6.66667% of 7500, which is 500, is added to your tax bill for 15 consecutive years. That is a mighty attractive loan offer, but certainly nothing close to a tax savings. The real disadvantage is if you sell the house before the recapture period is over, they now accelerate your repayment and this can cause a larger than expected tax bill at the end of the year. Now to address your specific question: Based on the current legislation (remember this has not gone through conference committee and the President has NOT signed it) it appears that with a annual income of 96,000, you would be eligible for the lesser of 10% of the total home purchase price or around 6,000 dollars (quick math). The amount reduced is based on the ratio of 75,000 bearing to 20,000. I would recommend NOT claiming this Tax Credit or allowing this tax credit to influence you to buy because it does nothing but help the sellers (builders, real estate agents, etc.) If the fed really wants to help out the buyers, they need to fork up the cash and forget the repayment. Republicans don’t like this bill and I don’t like it either.

Gross Dumps Treasuries as Rally Ends

Bill Gross has dumped all Treasuries from the world’s biggest mutual fund and Warren Buffett is shifting to shorter-term debt

First Time Home Buyer Seminar

Question: How long does it take to get the $8000 First Time Home Buyer Tax Credit back after ammending your return?

I li ve in Massachusetts if that makes any difference.
@ the kid – You can ammend your 2008 return to get the refund in 2009

Answer: 16 to 20 weeks. Amended returns cannot be e-filed. The credit for all purchases that closed after 11/7/2009 must be filed on paper, whether as an original or amended return.

Home Prices Fall to 9 Year Low

A Minneapolis homeowner knows first hand what new statistics show: nationwide home prices are at their lowest level in nearly nine years. Jim Blackwood bought his home in North Minneapolis in February of 2010. The home was in foreclosure and was condemned.

New tax credit good news for first-time home buyers.(Business)(Taxpayers may be eligible for up to $8,000 that does not have to be paid back): An article from: The Register-Guard (Eugene, OR) $9.95 This digital document is an article from The Register-Guard (Eugene, OR), published by The Register Guard on February 26, 2009. The length of the article is 655 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: New tax credit good ne…

First time Home Buyers can get 8000

Question: First time homeowner credit?

Does anyone know if the homeowner credit was extended into 2010? Any help would be appreciated. I’ve looked on line but can’t seem to find any info on the extension if there is going to be one.

Answer: Probably the legislation to extend it will pass.
It has to or the foreclosure rate could hit 30%.

In the meantime, pick your house.
You want to be first in line, before the prices shoot up.
Get your credit reports at
annualcreditreport.com
print them out – make sure there are no mistakes.
Do not delete old accounts in good standing.
After you fix everything – if you are curious get your credit score from Experian.com for about 7 bucks.
Keep in mind that major mortgage lenders to focus on the score – they view your reports in detail and make their own decisions.
They won’t worship the score – neither should you.

Save up, if you have any dings in your report, you will need 20% down.
20% down is also a good idea, since you won’t have to pay that nasty PMI that is not tax deductible, does not even go towards principal or interest – it’s like throwing away money.
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Tax Rules for Members of the Military

Don’t miss out on special breaks and filing extensions.

First-Time Homebuyer Tax Credit Extension

Question: is it a good time now to purchase a home with the recession?

Im a first time home buyer and yes i will be going into that program, but exactly how does it work. is it a good time to buy a home now? i heard on cnn that the housing cost has went down 4.8%. do i need good credit for the home buyers program. wouldn’t the interest rate be higher because of the recession. i have no clue about buying a house. do you know a good home buyers program in new jersey? do you know a good website that would give me good information. how do i go about this? what are some advantages and disadvantages of the first home buyers program? thanks

Answer: The FHA program is great for first time home buyers, you should really go to a local lender and have them explain it.

Before you buy a house, however, you should really consider why you’re buying one. If you have “no clue about buying a house,” it’s possible you’re not ready. One of the big causes of this crisis was people running into buy when they weren’t aware of the commitment they were getting into.

That’s not meant as an insult in any way, but home ownership is not always all its cracked up to be, and it is very risky. I work in a bank where we do a lot of home loans, and we’re seeing many, many people in huge financial trouble because they bought when they weren’t ready. Now, they’re not only losing the house they bought, they’re losing their down payment they saved for, their credit score, and any chance of owning a home in the next 7 years most likely.

Also, home prices should continue to slide through mid-2009 at least, but it is also dependent on your location. In Seattle, where I am, we had super high home price appreciation, and so now we’re having higher-than-average depreciation on those prices. Atlanta or Dallas may well be less affected, for example. Hope this helps!

Nine O’Clock

PM blames the selling of national oil reserves. Loan prices set to follow suit. Yesterday OMV Petrom hiked gasoline and diesel oil prices by RON 0.09 per liter, the most expensive fuel type reaching a price of RON 5.96 per liter according to company data.

OBAMA HOME MORTGAGE STIMULUS PLAN IN ARIZONA 1 FEBRUARY 18 2009 CONCISE

Question: I am a first time, veteran, prospective, home buyer in Georgia. ?

Due to a past divorce, I have a low credit score. Low debt and excellent income. What are my best choices for buying a home, including forclosures such as va and HUD or FHA?

Answer: Because you are a veteran you are entitled to special loans, talk with the veterans administration and ask them to put you in touch with someone.

Lower Demand Pushes Beazer Homes To Loss In Q1 – Update

Homebuilder Beazer Homes USA Inc. Tuesday posted a loss for the first quarter, as home sales and orders declined on lower demand. In addition, the year-ago results were favored by a tax benefit. Further, homebuilding revenues slid 47.3 percent, reflecting the sales and orders decline and higher cancellation rate. The Atlanta, Georgia-based company, however, expects a seasonal improvement in …

First Time Home Buyer