First time home buyer credit...

[Cowgirl]

Yes, another thread about it. Has anyone done it yet? I was under the assumption that it was an $8,000 tax credit, meaning you'd get $8,000 deducted from your AGI when calculating taxes. The accountant said last night that we'd get a check for $8,000. Does that sound right?

 

[chevylover]

I believe it is...just don't hold your breath. Friends of mine bought their first house in April and have not seen it yet. But they are expecting a check as well.

 

[Crewdawg141]

Yes, another thread about it. Has anyone done it yet? I was under the assumption that it was an $8,000 tax credit, meaning you'd get $8,000 deducted from your AGI when calculating taxes. The accountant said last night that we'd get a check for $8,000. Does that sound right?

I am a Realtor with Coldwell Banker in Waldorf, we are having a meeting tonight to help us (Realtors) understand the $8000 Credit and its benefits. If you can wait until tonight (meeting at 1800) or tomorrow morning, I will be happy to relay what is passed on to us. Do you have any more questions regarding it?

 

[morningbell]

Yes, another thread about it. Has anyone done it yet? I was under the assumption that it was an $8,000 tax credit, meaning you'd get $8,000 deducted from your AGI when calculating taxes. The accountant said last night that we'd get a check for $8,000. Does that sound right?

I thought it was to come in your tax return for 2009, I'll talk to my buyer's agent today to find out. I know the home has to be purchased by late November.

 

[Chasey_Lane]

You have probably already Googled everything there is about the tax credit, but I found these two blips.

First-Time Home Buyer Tax Credit: 6 Things to Know - The Home Front (usnews.com)

The $8,000 First-Time Home Buyer Tax Credit Program Expands: 5 Things to Know - The Home Front (usnews.com)

 

[Tilted]

Yes, another thread about it. Has anyone done it yet? I was under the assumption that it was an $8,000 tax credit, meaning you'd get $8,000 deducted from your AGI when calculating taxes. The accountant said last night that we'd get a check for $8,000. Does that sound right?

It is definitely an $8,000 credit - meaning it is not a deduction from your AGI, but rather an actual credit to the taxes you would owe for the year. I think they have put in place rules now so that home buyers can get the money immediately (when they close on the home - but you can't use it as part of the down payment). So, yes, it makes sense that you would get an $8,000 check.

 

[ProfMoneyWise]

Regardless of the credit or any program now or in the future please review the following prior to entering into any home purchase.

Be debt free.

Emergency fund of three to six months living expenses (including a house payment) minimum. This is not a line of credit or home equity. This is cold hard cash put away somewhere safe and never to be touched unless it is truly an emergency.

Downpayment in the amount (usually 20%) to avoid paying PMI.

Loan no longer than 15 years, fixed rate.

Total Principal, Interest, Tax and Insurance (PITI) does not exceed 25% of your take home pay. Be on the safe side and know the HOA fee (if any) and factor that in as well.

1% to 3% of homes value in a separate account for home maintenance and upkeep at all times. Things need painting, things break, Lowes trips, etc . . . these are needed, plan for them.

Do not take on debt to furnish this home.

Follow the above steps and the home stays a dream not a nightmare.

And if they say "but if you wait the housing prices will skyrocket" that will be good news to all of us who have homes that have lost value. The empty "oh my God's" from the guy doing the selling fall on deaf ears for those of us doing the holding.

In addition, buy it to live in it. Do not go down the "it is an investment" road. If someday you make money on it that is a plus but you got to like (and be able to easily afford) where you live. Lot's of investments on the foreclosure list. Do not add to the list.

 

[LastSon]

I bought a house with a good friend of mine in the middle of Feb, he filed his taxes basically at the deadline and we got our tax credit check back a few weeks back. I immediately used my half of the check to pay off a credit card down to $0 so that I can quickly drop my other card down to a balance of $0 and very soon be living debt free....other than that 30 year mortgage I'm on the hook for haha.

 

[Cowgirl]

I thought it was to come in your tax return for 2009, I'll talk to my buyer's agent today to find out. I know the home has to be purchased by late November.

You're allowed to file an amendment to your 08 taxes.

 

[butterfly08]

Yes, you do actually get a check. I bought my house in March and I just filed an amendment to my 2008 taxes.

First-Time Homebuyer Credit Questions and Answers: Basic Information

First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009

The irs website has plenty of information about this.

 

[smilin]

Yes you actually get a check - this year. Last year it was a credit.
The amount is figured like this: 10% of the sale price with a cap at $8,000 -
as if there are a lot of $80,000 houses around.
FHA is working on a program where you can use that money for the down payment. As far as I know the details have not been finalized.
I do know this: The program ENDS December 1.
If you haven't owned a home in the last three years you are considered a first time home buyer under this program.
I hear of people buying that the seller has paid all allowable closing costs plus
$8,000 from the feds plus %5 interest. That's right, prices aren't too bad either.

It may be time to buy - ya think?

 

[Tilted]

Yes you actually get a check - this year. Last year it was a credit. I think last year's program was a tax deduction, not a tax credit.
The amount is figured like this: 10% of the sale price with a cap at $8,000 -
as if there are a lot of $80,000 houses around.
FHA is working on a program where you can use that money for the down payment. As far as I know the details have not been finalized.
I do know this: The program ENDS December 1.
If you haven't owned a home in the last three years you are considered a first time home buyer under this program.
I hear of people buying that the seller has paid all allowable closing costs plus
$8,000 from the feds plus %5 interest. That's right, prices aren't too bad either.

It may be time to buy - ya think?

Under the FHA program, you can get an advance loan against the $8000 tax credit, which can be applied to closing costs and other fees. It can not be used for the required down payment (of course, since they are giving you the money up front, you could use it to make a larger down payment than is required and reduce the the outstanding loan balance - but you still have to be able to come up with whatever the required down payment would be in order to qualify for the loan).

Also, many states have programs to loan you money against the tax credit, at no or low interest. The rules for those programs vary from state to state.

 

[capsfan78]

Regardless of the credit or any program now or in the future please review the following prior to entering into any home purchase.

Be debt free.

Emergency fund of three to six months living expenses (including a house payment) minimum. This is not a line of credit or home equity. This is cold hard cash put away somewhere safe and never to be touched unless it is truly an emergency.

Downpayment in the amount (usually 20%) to avoid paying PMI.

Loan no longer than 15 years, fixed rate.

Total Principal, Interest, Tax and Insurance (PITI) does not exceed 25% of your take home pay. Be on the safe side and know the HOA fee (if any) and factor that in as well.

1% to 3% of homes value in a separate account for home maintenance and upkeep at all times. Things need painting, things break, Lowes trips, etc . . . these are needed, plan for them.

Do not take on debt to furnish this home.

Follow the above steps and the home stays a dream not a nightmare.

And if they say "but if you wait the housing prices will skyrocket" that will be good news to all of us who have homes that have lost value. The empty "oh my God's" from the guy doing the selling fall on deaf ears for those of us doing the holding.

In addition, buy it to live in it. Do not go down the "it is an investment" road. If someday you make money on it that is a plus but you got to like (and be able to easily afford) where you live. Lot's of investments on the foreclosure list. Do not add to the list.

Not to be an a55, and these are great pointers, but it just is not that easy. There is a perfect world, then there is reality. We have to live in one, and its usually the latter of the two.

 

[ProfMoneyWise]

Seven out of ten are living paycheck to paycheck and are mired down in consumer debt (not including the house). The average household has nine or more consumer debt accounts (credit cards, car loans). The average household has little to no savings set aside for emergencies and when asked 38% of people say they lie about money to their spouse. Money arguments/problems are also the number one cause (followed closely by how to raise kids, religion and in-laws) of divorce in North America.

Yes, what I laid out is not easy. But what I laid out as the basis for home ownership and financial soundness promises a peaceful existence as it pertains to home ownership.

I did not even get started on having a household budget, updated every payday, that specifically depicts where every dollar that comes in goes

There really are those living on the three out of ten household side of this equation. It can be done. It is not spending what you do not have, not taking on consumer debt, and not falling for the "I want's" or "Yeah but's" out there that tempt us all.

Again, not easy I agree. But can (and in my opinion must) be done.

 

[smilin]

Seven out of ten are living paycheck to paycheck and are mired down in consumer debt (not including the house). The average household has nine or more consumer debt accounts (credit cards, car loans). The average household has little to no savings set aside for emergencies and when asked 38% of people say they lie about money to their spouse. Money arguments/problems are also the number one cause (followed closely by how to raise kids, religion and in-laws) of divorce in North America.

Yes, what I laid out is not easy. But what I laid out as the basis for home ownership and financial soundness promises a peaceful existence as it pertains to home ownership.

I did not even get started on having a household budget, updated every payday, that specifically depicts where every dollar that comes in goes

There really are those living on the three out of ten household side of this equation. It can be done. It is not spending what you do not have, not taking on consumer debt, and not falling for the "I want's" or "Yeah but's" out there that tempt us all.

Again, not easy I agree. But can (and in my opinion must) be done.

I heard something that puts it in a nut shell:
"The market is driven by only two factors: GREED and FEAR".
They were speaking of the stock market, but it applies just as well with any other market.
My feeling is the average consumer follows this:
As long as people fear they will fall behind in their unrealistic expectations they will use their greed to justify the means.

 

[chuckster]

Yes you actually get a check - this year. Last year it was a credit.
If you haven't owned a home in the last three years you are considered a first time home buyer under this program.
I hear of people buying that the seller has paid all allowable closing costs plus
$8,000 from the feds plus %5 interest. That's right, prices aren't too bad either.

It may be time to buy - ya think?

I just bought in May, filed on line and recaived my check in a few weeks. Seller reduced the asking price by 2 1/2%, paid ALL closing cost and inspections, 5% intrest and with the VA, 0 down. Even with all of that I am paying about what I was paying for rent. Glad that I waited to buy so the prices came down and happy that we closed before June with the rates now at 5.5% and expected to go up. That $8000. sure came in handy.