Hi Wschafer,

The tax credit is a credit after you purchase a home. It is due to expire if you have not closed by November 30th. A good lender will help you work on your credit and then if the legislature extends it, you will be in a position to purchase.

If it is not extended then your credit will be getting better and you will be able to qualify. Not knowing what your score actually is it is hard to determine what you mean by "lousy'.

Jon's comments are appropriate. I simply answered the direct question of whether you can get the tax credit with "lousy credit". Qualifying for a loan will be the hurdle. Having an expert in the field analyze your situation is a key first step. Even if you can't qualify now... at no cost, you can learn what steps you'd need to take and when. And many times, the steps that are the best ones to take are not the ones that might seem intuitively obvious. I'd be happy to help.

Pat is right.

There is no relationship between the tax credit and your credit score.

However, your credit score will impact the type of loans you will qualify for. Often it is worthwhile to take the time to repair your credit before you buy a home.

Unless you have a specific need to buy now, credit repair will probably save you more money than the federal tax incentive. And since the incentive will probably be extended you may be able to do both.

If you buy a home through our office we will probably be able to refund the cost of the credit repair process. Contact me if you are interested in discussing it.

Depends what you mean by "lousy." Your best bet is to check with a bank Loan Officer or Mortgage Broker, who can give you a better idea. They are happy to give you a free evaluation.

Yes. The tax credit has no relationship to your credit score. If you buy a home and meet the requirements as a first time home buyer (or if you have not owned a home in the last three years), you can get the tax credit.

I'd be happy to explain the full program to you. Feel free to email me at Pat@DaumGroup.com. Thanks.