Home Buying in Ball Ground>Question Details

Melissa, Home Buyer in Ball Ground, GA

what about the bill for 1st time home buyers getting a 7500.00 tax credit?

Asked by Melissa, Ball Ground, GA Fri Aug 8, 2008

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Hey, just wanted you to know that as of October 1st the down payment for FHA is going to be 3.5%, they have raised it from 3%.
1 vote Thank Flag Link Fri Aug 8, 2008
The tax credit (and it is a credit, not a deduction) is definitely a great bonus for first time homebuyers, although any financial benefit obviously won't be derived until the following year. It offers an incentive for buyers thinking about a first home to move forward with those plans now rather than waiting, as it is only available to homes purchased from Arpil 8 of this year, through July 1, 2009. (Note: A first time homebuyer is considered to be anyone who hasn't owned a home in the past three years)

Something to keep in mind is that is actually more of a "loan" than a gift, as it will have to be repaid over the next 15-years ($500 a year), or repaid in full upon the sale of the home.

Another portion of the bill that first time home buyers should be aware of, is that downpayment assistance programs that currently allow sellers to contribute the 3% downpayment requirement for FHA loans will be eliminated by October 1, 2008. From that point, buyers will have to come up with the 3% themselves.
1 vote Thank Flag Link Fri Aug 8, 2008
Not all of the details of the Housing Stimulus package are fully disclosed at this point and you should consult a tax professional about your situation. The name first-time homebuyer is misleading, as anyone who hasn't owned a primary residence in the last 3 years may be eligible. There are income limits in either case of $75,000 for single filers and $150,000 for joint filers. There are also partial credits for those who earn up to $20,000 more about each of this filing statuses; I haven't seen or heard details on how the partial credits will be calculated. The credit is retroactive to purchases made April 9, 2008 and through July 1, 2009. In addition to the payback provisions others wrote, note that the loan will be forgiven if the profit of a sale doesn't cover the balance in full.
Web Reference: http://www.AskAgentLisa.com
0 votes Thank Flag Link Wed Aug 13, 2008
As is noted below, it's not a tax credit. It's a loan.

Here's a link for more information: http://www.federalhousingtaxcredit.com/faq.php#1
0 votes Thank Flag Link Tue Aug 12, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
Did you get your questions answered?
0 votes Thank Flag Link Tue Aug 12, 2008
I hope this helps. I'm not sure what you are asking.
0 votes Thank Flag Link Fri Aug 8, 2008
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