I've provided a link to the irs, so you can read about how this works.
Deja Lett, Realtor
Assist 2 Sell Home Team Advantage
207-282-0990 Ext. 403
Per the IRS website:
First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:
-Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
-Applies only to homes used as a taxpayer's principal residence.
-Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
-Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
Furthermore, HUD has issued guidance so that this credit may be used in addition to the 3.5% down payment requirement on an FHA loan. Lenders have yet to implement these guidelines. Regardless good news if you are looking to be a first time buyer :)
**Keyword here is ELIGIBLE consult with your tax professional to see if you qualify for the credit.
I am in the same boat, and was a tax professional. There was a bill in congress that would have allowed you to use the tax credit to help with the down payment, but it did not go through. As things currently stand you can file an amended return after your home purchase closes to claim the credit (assuming home qualifies and you have not owned a primary residence at any point in the past three years, and your income is within the allowed limits....search http://www.irs.gov for details on this "first Time homebuyer credit"), but you can not get the credit till after your home closes so it will not help you with the downpayment.
Agents in Oregon can not give legal advice, and/or tax advice -- we are not licensed to provide knowledge outside the scope of our license. Real estate tax credits are best answered by a qualified CPA, tax preparer, etc.
The tax credit, is an "up to" amount. This is not advice but what the guidelines are. If you need assistance with the home buying process that's another matter.
The bad news is no you can not get the money up front to assist you with your down payment..
The GOOD news is you may qualify for the tax credit if you purchase a first home in the next 6 months. So if you have access to gift funds from a family or friend or you have a 401K you can borrow against then you could repay it when you file or ammend your taxes.
John L Scott
That $7500 tax credit will allow you to get a nice tax refund as a part of your filing so it will really help but it would be after closing.
If you get with a good mortgage broker that does a lot of FHA lending they may be able to help find you some additional help.
Overall it is all about the value. Homes are at awesome prices right now. I would shop for a home and get prequalified. You could borrow from a 401K or other retirement plan and repay that money with your tax credit for instance.
Of course I am here to assist you discuss the real estate side if you like.
I am at 503-799-8383.
Re/Max metro Gold
Re/Max Hall of Fame
I am a mortgage broker. If I can be of service, please let me know!
877-238-6324 Ext 704