Home Buying in Connecticut>Question Details

Roshan, Home Buyer in New Haven, CT

Will the 1st-time homebuyer tax credit that ended in 2010 be re-issued? And if so will it be $7500 again? Or even higher?

Asked by Roshan, New Haven, CT Wed Mar 7, 2012

And when would we have an idea if it will be re-issued?

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Answers

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Our town, Manchester has a $4,000 credit for closing costs or down payment.
You do not have to be a lst time buyer but you have to stay in the home
for I believe it is 4 years to not pay it back. Interest rate is 3 l/4% ...

So, you buy a 3 bedroom home for $100,000 and your payment would be
between $700-800 a mth principle, interest, and taxes included.
Most people for a home are paying over $1,000 a mth for rent.

You may be renting for much more than that now yes? There
may be other programs in New Haven that are just as good..
0 votes Thank Flag Link Thu Mar 8, 2012
Most likely NO, as others have stated here. However, pricing is even more affordable than 2010 in most areas, so you should make up for that non-credit in what you would pay today for a property.
0 votes Thank Flag Link Wed Mar 7, 2012
Thanks for the replies Ron & Deborah.

Deborah...I have a followup question. What do you mean by "upfront mortgage premium"? What exactly is that?
0 votes Thank Flag Link Wed Mar 7, 2012
Roshan, There is absolutely no chance there will be a reenactment of the tax credit. Right now the battle is to keep the deductibility of the mortgage interest. This issue will be on the table after the elections in November and I expect it to be a hotly debated subject. FHA has announced increased in the upfront mortgage premium effective April 1st (up from 1% to 1.75%) and the monthly premium is also going up slightly. The government wants to gravitate away from the high percentage of FHA loans currently being done. Fannie and Freddie's future configuration is still pure speculation also.

The current philosophy in Washington is that they want to open the flood gates for huge wholesale investors who are willing and able to buy hundreds of homes at a single outing. The idea is that investors are in a better position to get the foreclosure inventory cleared out, renovated and back in the market (either as resale or rental property).

In short, anyone who is waiting for a tax credit to purchase a home would be missing a great opportunity in today's market. And, in my humble opinion, would be more likely to win the lottery. Best of luck to you!
0 votes Thank Flag Link Wed Mar 7, 2012
I think the majority would say NO.
The political arena is playing games; making us think that they are actually doing something for us.
If Obama was going to give it to us, he would have done so already.
0 votes Thank Flag Link Wed Mar 7, 2012
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