Yo Mark, no I didn't. I did not investigate that deeply into it. I was just amazed that there was 25 responses. These social networking sites intrigue me as it relates to the number and types of responses from the realtors that I see making those responses.

I think all those responses should have a disclaimer similar to that of investing disclaimer -- that past performance does not guarantee future results. Perhaps on these real estate sites every post should have a disclaimer at the bottom that says something to the effect:

"The foregoing answers have been based on solicitation of information -- these answers may not be your best solution and your own due diligence is highly recommended."

I know of an agent in the area who is manipulating this site for their own benefit by giving false information.

Yo Mike, you did notice that the question was 9 months old didn't you? I'm not sure quick applies.

Hi Nayla, did you ever buy a home? I'm sure we'd all like to know.

Hey Nayla,

WOW! Feeling informed? Your question received 25 quick responses. Some repeats from the same realtors. I think that website that Rick Aguirre sent is your best shot.

Latest news: Who Qualifies for the Extended Credit?

1) First-time home buyers who purchase homes between the date the bill is signed by the President and April 30, 2010 get $8,000.

First Time Buyers now get up to: $8,000

2) Current home owners purchasing a home between the date the bill is signed by the President and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight get $6,500.

Move Up Buyers now get up to: $6,500

Follow the link for more information: http://brokerdave.topproducerwebsite.com/2010-tax-credit.asp

Broker Dave
GRI, ePRO, Broker & Realtor

Visit my profile located here on Trulia, its simple just scroll your mouse over my picture and click.

Joninray,

People were not misinformed they just got the 2008 $7500 tax credit mixed up with the 2009 $8,000 tax credit, two different animals.

2008 tax credit recipients are still required to repay the $7,500 loan over a 15 year period, here is a link:

http://brokerdave.topproducerwebsite.com/1st-time-tax-credit.asp

2009 was never a pay back and is for homes over $80,000 bought between Jan 1, 2009 and Dec 1, 2009 under the 80,000 mark you get 10% of the homes contract price. Only First Time Buyers can take advantage of this tax credit.

Check this link and look for the '2009 Tax Credit' button on the right side :

http://brokerdave.topproducerwebsite.com/first-time-buyers.asp

Dave Lowe, broker
GRI – ePRO – GREEN

Visit my profile located here on Trulia, its simple just scroll your mouse over my picture and click.

Nayla,

I have placed links on Orlando Home Store website showing the difference between 2008 and 2009 tax incentives for first time buyers.

Take a look: http://brokerdave.topproducerwebsite.com/first-time-buyers.asp

Hope this helps,

Broker Dave
GRI, ePRO, GREEN

Visit my profile located here on Trulia, its simple just scroll your mouse over my picture and click.

I just want to update you on the tax credit. As you may know, the amount is now up to $8,000. The household income guidelines are the same - $75K single, $150K married. The credit is based on 10% of the sale price not to exceed $8,000.

You must close on your first home by November 30, 2009 to apply for the credit. You can amend your 2009 tax returns or wait until 2010.

You must live in the house for atleast 3 yrs or you will have to repay the tax credit.

Orange County and City of Orlando will be advancing the tax credit of up to $8,000 first time homebuyers towards their down payment and closing costs.

The City's program will be rolled out in second week of August. Their program will require borrowers to meet the City's SHIP guidelines and it will be a second loan that must be paid off within 18 mths or when the borrower receives their tax refund in 2010. Under the City's program, the tax credit can only be used towards the down payment.

Orange County has not disclosed their guidelines yet but it may be similar to the City's however using Orange County income and debt ratio guidelines.

If you haven't purchase yet, there is still time. Call me if you have any questions regarding this matter or you need to get prequalified.

Sincerely,
JACQUELINE CLARKE
Enterprise Mortgage Group
Winter Park, FL
Cell: 407-739-3853
Email: jclarke@enterprisemortgagegroup.com

Nayla,
Here is the official website.
http://www.federalhousingtaxcredit.com/

Well, I just got back from my CPA and I will take that "credit"! Seems that many people are misinformed...YOU DON'T PAY BACK EVERY DIME!!! My wife and I were told that anyone who akes the "loan" will only pay back the percentage of your tax bracket...if you are in the 15% tax bracket, then you will pack back (over 15 years) 15% of $7500. In other words...my wife and I will only be paying back about $1125!!!

Who wouldn't take a loan where you don't pay ALL of the loan back and on top of that...at 0% interest!?!?!? I will take that...have'nt ever said this before but I will now..."Thanks, Bush!" It may not be as good as Obama (don't have to pay ANYTHING back, BUT this is better than nothing. Good thing I waited to close after the first of May!!!

She will have to pay back the credit should she not purchase by July1 2009 as per the credit's expiration date, and I am unsure what she put in the Date Acquired line, but it may be as simple as putting a date range.

I know that the credit states it must be purchased between April 08' and July 09' to be eligible....not that it must already be purchased.

It pays to have a great tax preparer. I will get the details from the client on exactly how she did this tomorrow.

Greg, it is unclear to me how your homebuyer and her tax preparer received the tax credit when the Form 5405 clearly asks for "Date Acquired".

In addition, the General Instructions are clear, the home must have been "purchased" in order to request the credit.

I am assuming she withheld those funds in advance of purchasing that property. In that case, it would not be due to the tax credit.

Ms. Ward, I suggest you and your tax preparer visit http://www.IRS.gov and take a look at the "Frequently Asked Questions" section. You will be able to find information on the tax credit in its current state. In addition, please see the following link: http://www.irs.gov/pub/irs-pdf/f5405.pdf

Regards,
Jacqueline Clarke
Down Payment Assistance Specialist
Enterprise Mortgage Group, Inc.
Direct: 407-739-3853
email: jclarke@enterprisemortgagegroup.com

No disrespect to Bean! Hey thanks for the kudos, we all are in this together and it is changing. I went to a financial seminar last week and the speaker stood up and said "I am going to tell you all about this new Govt regulations etc, but it will all change next week! This was the expert!

So Nayla, we are here for you. any of us would be glad to meet with you and get you started on your home search. Pick a Realtor you are comfortable with and with whom you can relate. Interview a few. We can all be contacted via email or web. We are here for you!

Thanks John and give that Polly a cracker.

Gay Middleton
Realtor/Sales Specialist

Gay you are correct, that Bean is something -

haul up the double warning flags.

You should hear my bird every time they start talking about Hurricanes on the news.

Bird starts yelling:

"HURRICANE COMMING, HONKER DOWN!!"

And, as is in your case, its all good stuff. but my head is spinning.

Nayla is well served. The tax code is 16,845 pages. This does not count, tax law, nor letter ruleings.

Bring on the CPA's - so they can get a handle on this. then let us know.

I have a client right now that filed for the current $7500 tax credit on her 08 return, she has the $7500 in her account NOW and is using it as a part of her downpayment. I left the details to her and her tax preparer, but she has the money now.

The revised tax credit will hopefully be passed in the next 2 weeks, but who knows what it will look like when it get's passed. For now you can definitely use the $7500 credit. If the credit changes and is retroactive, you can always file an amendment to your taxes and receive the additional credit.

;)

Wow this is a very vigorous discussion. Is there a tax professional out there?!!!

Ms. Ward, let me answer your question. If you don't have the $7,500 dollars and can't get a gift from a relative, then let me see if you are eligible for down payment assistance.

Depending on where the property is located, your annual income and houshold size, you may be eligible to get up to $42,500 in Orange County or up to $40,000 in City of Orlando. Most counties and municipalities have some sort of down payment assistance; the amounts vary.

I have taught and continue to teach the First Time Homebuyer classes for several non profit organizations and educate realtors on the SHIP programs.

Let my experience get you the money you need to purchase your home.

Sincerely,
Jacqueline Clarke
Enterprise Mortgage Group, Inc.
Direct: 407-739-3853

Cool answer Gay, gave you a thumbs up for that one!
IS THIS FUN - OR WHAT?!

Not sure you are Windy, but am positive I don't want to be associated with a hurricane ;-) after what I went through with Charlie and the other back to back Hurricanes in such a short period of time, my .02 is if one is headed this way, I'm headed North on an airplane to visit my relatives in TN!

Base hit? Yes! And to Barbara in PA, it was 27 in Orlando this morning, and there is not one store that sells clothes warm enough for that in Central Florida! To Floridians anything lower than 50 is nasty and incurs very high heat bills.

Nayla, I wish you this best, hang in there, and all this will be resolved soon as we are all trying to give you our best opinions but perhaps we should email OBama and see what he says? That would be interesting now, wouldn't it? I think I might just do that - just to see if I get a response ;-)

If I do, I shall post it here for all to see!
Stay warm all!!

Hi Nayla,
First answer is best. It is ever changing and we will not know for sure until the stimulas pkg is approved and signed. Hopefully will be next week! You do not have to wait to look for a home to use it. It is a tax credit so you will not be filing on this until next year, and hopefully it will all be figured out by then.

The National Association of Realtors have been working in Washington to help get this passed and I emailed our Washington representative for help and while it is NOT approved yet (see previous) it is expected to be raised to $15,000 and include ALL homebuyers now. It will not have to be repaid ( as we understand it now) It is a dollar for dollar tax credit. Suggestion about adjusting your withholding is correct but talk to an accountant or CPA or IRS. Last thing you want is to owe the IRS money. There will be a time limit on the program not clear on that yet. End of year is likely.

Do not wait for Congress to make up their mind, I have 8 buyers currently looking for homes and I wrote 2 Contracts this week. It is a "mini" boom at least here in Orlando. The best homes are going to go first. Get together with a Good Realtor, and Mortgage Broker or your Bank and get to looking! It is FREE money. Get it while you still can.

And you thought I was "windy" ,John! Is Ms Bean a hurricane compared to me? It is a running joke between John and I. I tend to get carried away with detail but I think I will defer on this one.

Good Luck Ms Ward and remember if I can be of any further service to you, just click my name to contact me or I invite you to visit my website to get even more confused! At least we will all be confused together.

Good Answers Barbara from PA! If you are trying to nudge us here in Orlando for some warmth, try again. Almost as cold here as you are there!

Base Hit?
Gay Middleton
Realtor/Sales Specialist

Nayla,

The mortgage company i use has a first time buyer mortgage person who can explain in detail the in's and out's of the 7500 tax credit, also she has experence with the downpayment assistance groups in Orange, Orlando, Seminole etc... we are helping 3 first time buyers now go through the program.

She would be willing to take time to help you with all your questions as it relates to your loan.

If you are interested click on the blue 'Broker Dave' next to my picture and you will be directed to my profile page from there you can send me and email requesting her name.

Thanks for the question and good luck with your house hunting,

Dave Lowe, broker
Two4one of Orlando
GRI - ePRO - GREEN (designations)

John, The IRS is on second base, bases are loaded, the opposing team has their best grand slam hitter up at bat and the coach is trying to figure out whether they should take a shot at a grand slam, or play it safe and bunt to walk in a run ;-)

Brent: The link you gave is old, it doesn't even address the new $15K issue - only the older $7500K issue that people still didn't understand.

My advise stands. If the new tax credit/loan/rebate/whatever they want to call it issue is THAT important, then wait until the gray area clears.

If it isn't an issue, with mortgage rates so low, housing prices so low - then go for it and take a chance. Rates and prices have not been this good in YEARS and I've been in this industry since 1979, so I would not let a confusing tax credit issue worry me right now. When I first got into real estate in 1979 the mortgage rates were in the double digits, nobody could get a loan, there was the S&L crisis, so now is still better than THEN.

I will reiterate, if you NEED the tax incentive, then wait, if you don't - then go for it and if you get the tax credit/rebate and don't have to pay it back or whatever, then hey - consider that as a bonus!

I will post again when I hear from my powers that be ;-)

John, that 'Bean counter' comment was too funny! LOL! Maybe I should use this as my new real estate slogan? Then again, I lLOVE to cook and people confuse me with Paula Dean because our names sounds so similar ... not that I'm braggin, but I could teach her things ;-)

Jacqueline:
If Barbara's link is correct, then your answer is incorrect. THIS is why it is so very confusing and I would defer to a CPA. The link Barbara gave (if it is correct) states that the loan DOES have to be repaid. I would really hate to give legal advise to a buyer when the facts are so confusing.

As a matter of fact, as an agent, we are not EVEN allowed to give legal advice - which is why I say consult a CPA, financial planner, the IRS, or whomever, because the right hand does not know what the left hand web site is doing ;-) To further confuse the issue, at the end of the link Barbara gives, it says if you sell the house, but there is not a profit, the loan is forgiven. I will reiterate my previous advise and say IF the tax credit doesn't matter, go for it - IF IT DOES.....tread lightly and seek competent counsel, or wait til the matter is more clear.

Here is the copy of what Barbara's link says with regards to the subject and it makes it perfectly clear (if correct) that it does, indeed have to be paid back UNLESS you sell the house and do not make a profit, and you have paid back the $500 credit for the years you lived in it, and you stick your tongue out while raising your right hand and watching the TV at the same time.

This is truly ridiculous. I've copied Barbara's link on the issue below, in the meantime, before I proceed to help a buyer with these gray parameters, I have a call in to our legal counsel and my CPA/Financial Planner/IRS friend. In the meantime, I am not touching this with a 10ft pole!

>>>Does the credit have to be paid back to the government? If so, what are the payback provisions?

Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.


Why must the money be repaid?

Congress’s intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.


Because the money must be repaid, isn’t the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?

Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

Who's on First???!!!! and lets not talk about whos on second.

Nayla, I suggest the First-Time Homebuyer Credit Information Center on the IRS' website. It is at the following link.

http://www.irs.gov/newsroom/article/0,,id=187935,00.html?portlet=7

Brent Ferry
International Drive Realty Orlando

Just to clarify - the law in place regarding the tax credit is as follows:

You must be a First Time Homebuyer with income not to exceed $75,000 if single and $150,000 if married.
You can apply for the and get "up to" $7,500 or 10% of the sale price not to exceed $7,500.

You must purchase the property between June 08 and July 1, 2009 to get the credit.

If you purchase house this year and if you havent' filed your taxes, you can apply for credit on your 2008 or wait until next year.

This is a interest free loan, payable over 15 years with an annual min. payment to start next year at $500.00. This payment would be deducted from your tax refund or could become a liability, ie. you would owe $500, if you're not entitled to the refund.

The revisions, under consideration by Congress, are as follows:
Increase the credit from $7,500 to $15,000
Open the market to all homebuyers - you don't have to be a first time homebuyer
It will be a grant and not repayable.

Bottom line, you have to purchase the house and close before you can get the credit. There is a special form that your tax professional will complete to obtain the funds.

I hope this clears up the confusion.

Jacqueline Clarke
Enterprise Mortgage Group
Direct: 407-739-3853

Boy things must be very confusing when Ms. Bean has to refer to a Bean Counter, CPA.
Yes how are we going to get along when we have to have a dozen people with us to figure out the rules that change every day.-- "Who's on first?"

Wish I could add to this but I am just as confused.

John

No you cannot use the $7,500 tax credit towards your down payment. It will be either a refund or used to offset money you owe to the IRS. As the writer below mentioned, there is a bill that is under consideration that will increase the amount of the credit to $15,000 and no longer require repayment. We just have to wait to see if Congress will do the right thing!

Do you need help with your closing costs and down payment? If you meet certain income requirements, you may be eligible for down payment assistance. The amount of assistance is determined by your income, household and where the property is located. You won't have to pay this money back unless you sell, rent or refinance the property to get cash out.

I am approved with the City of Orlando and specialize in this area. Call me to determined your eligibility.

You may also go to http://www.ocfl.net or http://www.cityoforlando.net. Select "Housing" or type in "Down Payment Assistance" in the search bar for general information on the programs.

Regards,
Jacqueline Clarke
Down Payment Assistance Specialist
Enterprise Mortgage Group
Winter Park, FL
Direct: 407-739-3853
Email: jclarke@enterprisemortgagegroup.com

THIS IS truly confusing to us all! Each site does say different things so I'd advise to consult with a CPA.

Barbara, you said in your reply that the credit doesn't have to be repaid - yet the link you provided says it does. I read through the entire thing and here is what it says:

>>>Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

I have a good friend who is a CPA and a Financial Planner - I'm going to email him for his .02 on this. In the meantime, unless we can really clear out the gray area on this, I'd suggest holding off on buying a home unless it doesn't matter if you need this tax credit that may or may not be a true credit that has to be repaid. Rates are great right now, house prices are low, so this may offset the confusing tax credit issue for some.

If anyone else has a site to share that clears this up, please share!

No...you cannot apply the "tax credit" as a down payment.
Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2008 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment. Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

Congress is actively considering an expanded home buyer tax credit, and the Senate has approved the following improvements:
•The tax credit amount increases to $15,000.
•The tax credit is extended to anyone buying a principal residence.
•The tax credit will apply to all purchases occuring within a year after the bill is signed into law.
•It is a true tax credit; it does not have to be repaid.