Fi709, Home Buyer in Philadelphia County,...

I heard that first time home buyers get an $8,000 tax credit. Is this true?

Asked by Fi709, Philadelphia County, PA Thu Jun 4, 2009

Can you use the money for home improvement purposes? Also, when do you receive the money at closing? Or when you file your taxes? Do you get a whole lump sum? I'm so confused

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7
Dana Schuster’s answer
The tax credit is for up to $8000(10% of purchase price) You can now get the money ahead of time for downpayment or closing costs on an FHA loan. You must have the required 3.5% down payment but can add the credit onto your down payment. otherwise,you amend your taxes and get the money later. it does not have to be repaid as long as you live in your house for 3 years. here is a link:

http://www.hud.gov/news/release.cfm?content=pr09-072.cfm
1 vote Thank Flag Link Thu Jun 4, 2009
Just wanted to amend my last comment, PA does offer "PHFA Tax Credit Advance Loan Program". Link below.
0 votes Thank Flag Link Thu Jun 4, 2009
Just read this please Fi709 .... http://activerain.com/blogsview/1094377/-8-000-first-time-ho…

http://www.realtor.org/RMODaily.nsf/pages/News2009052901

and from the IRS.... http://www.irs.gov/newsroom/article/0,,id=187935,00.html

I think it may help you understand what is going on, it is not as simple as some would like you to think as there are requirements and limitations. Plus just because Fha says lenders can do something doesn't always mean lenders/banks will.

Good luck, Dunes " No spam please! When in doubt, please refer to our Community Guidelines."
0 votes Thank Flag Link Thu Jun 4, 2009
Go to the link below to get an overview. The tax credit is available until Nov 30, 2009, which means that if you were to take advantage you would need to close by that day. You can only "redeem" the credit when filing for your taxes; however, HUD has made it possible to "redeem" it quicker (link below), but neither PA state nor city of Philadelphia have programs in place to take advantage yet. As for home improvements, you can obviously use the credit after you receive it, but Philadelphia offers a home improvement loan for residents and, during the purchase phase, you may consider a 203(k) FHA loan. As you have observed from reading this, make sure to hire a good Buyer's agent who can properly advise you in purchasing your first home. Good Hunting!
0 votes Thank Flag Link Thu Jun 4, 2009
You bet! This is just like free money if you are a qualified first time home buyer. You do not get the money at closing. It is tax CREDIT. If you owe say $2000 in taxes as an exapmple then you would get a check for $6000.00 after you have filed your tax return. If you owe nothing then you get the full amount. Wow!! With low interest rates AND the tax credit this is a great time to be a first time Homebuyer. There are also some improvement for which you can recieve a tax credit for such energy effecient windows. You can go to IRS.com to get a full list of those that qualify.
0 votes Thank Flag Link Thu Jun 4, 2009
It is absolutely true and one thing that I don't think any of the responses touched based on yet is that the tax credit is only good until the end of November 2009 so, you need to act fast to take advantage of it since the home search and closing process can take a good bit of time.

I would be glad to be of assistance to get you moving.

Mika D. Lisiewski
REALTOR
Century 21 Alliance
630 Germantown Pike
Lafayette Hill, PA 19444
office: 610-828-2700 ext. 275
cell: 610-226-5727
Licensed in PA RS308999
0 votes Thank Flag Link Thu Jun 4, 2009
YES, this is true and BETTER YET, this money can also be used TOWARD YOUR DOWN PAYMENT.
You also qualify if you haven't owned a home in the past 3 years.
We speciaize in working with 1st time home buyers, feel free to give me a call so that I may explain the other particulars of this program and email a list of homes that fit your needs and wants.

Judi Wolfson, ABR CRS
800-339-5834
0 votes Thank Flag Link Thu Jun 4, 2009
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