Home Buying in Dallas>Question Details

Rosalinda Gu…, Other/Just Looking in Dallas, TX

About this $7500 for first time home buyers, do you have to pay it back?

Asked by Rosalinda Guzman, Dallas, TX Mon Feb 2, 2009

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8
Rosilinda,
Yes. This is a no interest loan in the form of a tax credit. It is to be repaid in equal installments over a 15 year period begining the following year. The amount is 10% of the purchase price with a maximum of $7500.

Hope this helps,
Dennis.Anderson@century21.com
1 vote Thank Flag Link Mon Feb 2, 2009
Rosalina,

That depends on when u purchased your home. The Bush legislation of 2007 and promoted frequently in 2008, required one to payback. However, the newest leglisation does not require you to pay back and provides provisions for those who may wish to apply for the non-payback plan. See http://www.federalhousingtaxcredit.com/2009/faq.php#10 or your tax advisor for the most accurate, up-to-date (as it is ever changing) information.

Sincerely,
Francesca
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Mon Feb 23, 2009
Rosalinda,

I don't think you'll have to wait until next year to buy to get the homeowner's credit as "NonRealtor" states. Please take a look at this news story - the $15,000 home buyer credit has alredy passed the Senate. It's expected to be signed by the President very soon.

The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit.

http://news.yahoo.com/s/ap/20090204/ap_on_go_co/congress_stimulus

Thanks,
Terri Hayley
0 votes Thank Flag Link Thu Feb 5, 2009
Wait another year, save another 20% on the price. Congress is working on a 850-900 billion dollar stimulus package. Rumor has it that the senate Republicans are pushing for a 15K tax credit to first time home buyers to stimulate home buying ( and I don't think you have to pay it back ). But this is still "up in the air". Good Luck
0 votes Thank Flag Link Wed Feb 4, 2009
Texas has a mortgage tax credit program which might be of interest to you. It only has to be repaid under certain conditions. The program is through the Texas Department of Housing and Community Affairs. You have to apply for the program and receive your eligibility certificate before purchase of the home. Your mortgage lender should be on board with this program and be able to give you more information.
Web Reference: http://myfirsttexashome.com
0 votes Thank Flag Link Wed Feb 4, 2009
Yes, the way the incentive is written now, it is a loan and does have to be repaid. But, there is talk of pushing for the $7500 tax credit incentive to be opened up to all buyers, and not just to those who haven't purchased a home in the last few years. I am all for that! If that is something you support, it's a good time to be vocal with your government representatives at all levels.
Web Reference: http://www.rondallen.net
0 votes Thank Flag Link Tue Feb 3, 2009
Hi Rosalinda,

Yes, however this tax credit is such a great opportunity if you look at it. It's INTEREST free money that you only have to pay back in a amortized term of 15 years. If you get the full $7,500 which is usually the case since the max is 10% of the purchase prices and most homes are more than $7500. You do need to confer with someone in the tax profession to understand fully how this can work for you, but here's food for thought.: if you took that Interest free money and invested it into a secured investment even getting you a 4% return on your money, You stand to make almost $4,000 PROFIT off of that tax credit and that's after you've paid it back. The possibilities and opportunities are there, you've just got to do a little home work.

Hope that also helps.

God Bless,
Josh
Web Reference: http://www.eXposedHomes.com
0 votes Thank Flag Link Tue Feb 3, 2009
Hi Rosalinda,
Here is a link you get all your questions about the the Federal Housing Tax Credit.
http://www.federalhousingtaxcredit.com/
0 votes Thank Flag Link Tue Feb 3, 2009
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