The Federal Tax Credits Blog

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Online Town Hall

$8000 Tax Credit to be used as downpayment

Question: Anyone know the details regarding the $8000 home Buyers Tax Credit ?

Here is my situation:

I bought my first ever home in July 2008
Refinanced in Feb 2009
I made 83K in 2008
Married with 2 children
Wife doesn’t work

Based on my income and purchase time do I qualify for this proposed tax credit?
How do I claim it?
Do I have to repay it back to the Gov’t?

Thanks in advance

Answer: The most recent ‘tax credit’ contained in the very recent stimulus bill has not been fully revealed, in terms of requirements and time frames involved. You certainly should qualify for the previously announced $7500 credit, which is actually an interest free loan to be repaid over fifteen years.

It’s rather doubtful that the new version will extend to 2008 versions. The bill is intended to stimulate the housing market. Giving you a credit for last year’s purchase doesn’t stimulate much of anything.

Tax Season for Hoboken Real Estate Buyers

Question: 1 year work history, was in college prior, will I be qualified for an FHA home loan?

I have been working for about 1 year now. 8 months at my current job and 4 months at an older job. Both jobs are in the same line of work and my pay increased moving from the first job to the second. Prior to that, I attended a community college for 2 years. My field of study in college is not the same as my current field of work, but I’m not sure if that matters? I did not get my A.A. degree because things came up and I had to leave school to go to work. I only have 1 year of income tax returns, but have $8000 saved up for closing costs (my parents are willing to pay the downpayment as a gift). I make $2220 a month before taxes and have no debt whatsoever. Credit score is in the range of 550-600 as I applied for a credit card not to long ago. My question is: under these circumstances, what are my chances of being accepted for an FHA home loan? I am planning to buy a house in the $75,000 – $80,000 range. Thanks.

Answer: Job wise you are fine. You will just need to provide documentation that you were in college prior to your one year job history. The credit score is what will get you. Most investors who buy the FHA loans after closing will not accept a middle score below 620. Get that score up to show you know how to manage money & are a responsible person. Applying for one credit card would not do that much damage to your scores. You have some other issues. Clean it up.

Good luck.

CHARMING 3 BEDROOM 2 BATH HOME IN A FANTASTIC NEIGHBORHOOD!

Question: Will I have to repay the $8000 tax credit if I move out before 3 years but do not sell before 3 years?

I am considering buying a home that I probably will not live in for 3 years but plan to rent out after I move out. What are the specific details about repaying the stimulus package $8000 tax credit for 1st time home buyers.
I do not know that I will be moving in less than 3 years, but there is a decent chance that my work will move me out of state before then. I have read some places that it cannot be sold in less than 3 years and some places that say that you must live in it for three years. I just wanted to clarify which it was. It will be my primary residence initially.

Answer: You have to pay it back if you don’t live in it for 3 years. They will take it out of the sale of the property when the time comes for you to sell.

2773 SPARROW HILL DR, COLUMBUS OH 43219 HUD Columbus OH Homes for Sale. Susanne Novak, Realtor