The Federal Tax Credits Blog

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Question: Questions about the housing rescue bill?

I am a first time home buyer and I’ve heard that I can receive a credit of $7500 for buying a house.

Every time I call a mortgage lender they act like either I’m from Mars and I don’t know what I’m talking about or they say they don’t have any updated information to tell me.

Who can I call or where can I find out additional information about this. I want to make sure I make the appropriate downpayments and follow the rules to make sure I’m elgible.

Who can tell me more about this? What resources are there out there? It seems like Congress passed a law and no one knows about it. Is anyone with a pulse eligible that is a first time home buyer?

Answer: First time home buyers, is a “Loan” that you get from the government that you have to pay back each year when you file for your income taxes.

Lenders do not like this credit at all because it ends up as a “phantom” down payment. What i mean is you have to pay it back and increases the risk to the lender.

More information found in my link below.

Las Vegas home sales fall 11 percent in June

July 09–The tailwind from the homebuyer tax credit has ended and some housing analysts are concerned the market may be headed for further decline.

Home Buyer Tax Credit Update, Use $ for Down Payment

Question: Will I be able to claim child tax credit for 2006 yr?

I am pregant and due in November. Will I be able to claim this child on my 2006 taxes. We have two other children who have been eligible for this credit.

Just wondering if it matters that the child will only have been **technically** in my residence for under two months.

Answer: You can claim a child as long as he or she is born before Jan 1, 2007. You can claim a child whether he or she lived or died in that year. You need to obtain a social securtiy card for the child before you can claim him or her. Good luck on the new baby, hope everything works out fine!

Political Notebook: Budget and tax incentives before lawmakers’ break

Before lawmakers leave St. Paul for their Passover/Easter break, they plan to tackle a budget bill and tax-incentives proposal.

Question: Extending $7,500 tax credit for first-time home buyers?

Does anyone know if there are plans to extend or expand the $7,500 tax credit for first-time home buyers in President Obama’s current stimulus plan being considered by Congress? I’m a prospective first-time home buyer with a steady job and excellent credit but there is no way I would be able to come up with a 20% down payment before my chance to benefit from the original tax credit expires on July1, 2009.

Answer: 1 Check with a loan officer. Depending on a lot of variables, but a huge number of first time home buyers would be better off getting an FHA mortgage and it only requires 3.5% down. You could get the low interest rates that are available now and the low prices that are available now and also qualify for this tax credit.

Under current law you do have to pay that $7500 tax credit back at $500 per year. It is essentially a 15 year interest free loan.

Home prices rise again in October

Home prices rose for the fifth month in a row in October, but the recovery is shaky with only 11 of the 20 metro areas tracked showing gains.

Let’s BUG Congress – Extend & Expand the Tax Credit Please!