Financing in Hillsboro>Question Details

Shane, Home Buyer in Hillsboro, OR

I'm looking to buy a home within 3months, can I file for the $7500 tax credit to help with the down payment?

Asked by Shane, Hillsboro, OR Wed Jan 28, 2009

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Hello Shane,

I've provided a link to the irs, so you can read about how this works.

Best Regard,

Deja Lett, Realtor
Assist 2 Sell Home Team Advantage
Saco, ME
207-282-0990 Ext. 403
1 vote Thank Flag Link Wed Jan 28, 2009
Cut and paste from my previous answer on another thread :)

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.

Good luck!
0 votes Thank Flag Link Fri Jun 26, 2009
Well, it's now an $8000 tax credit and and now it's a true credit that doesn't have to be paid back. Also as has been said before in this thread, the credit is "up to" $8000. To read the parameters of the first-time home-buyer incentive, refer to the irs.gov website. There are also zero down programs in addition to getting the $8000 credit. I'm not a lender or a tax accountant so I can't advise that way but if you're interested in having proper representation in the purchase of a home in Hillsboro or surrounding area, give me a call.

503-495-3570
Web Reference: http://www.sunnyoregon.com
0 votes Thank Flag Link Tue Jun 23, 2009
Do not wait any longer. I found a lender that helped me thru the whole process at http://www.fhaloanagent.com
0 votes Thank Flag Link Mon Jun 22, 2009
Hi,

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.
0 votes Thank Flag Link Mon Jun 22, 2009
If you are serious about owning a home talk to a FHA loan consultant in your state. They will give you a free consultation.
0 votes Thank Flag Link Sat Feb 28, 2009
Real estate agents are not tax professionals. The only good response you received is from Deja Lett and the link to the IRS website.

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.
Web Reference: http://www.EBAPortland.com
0 votes Thank Flag Link Thu Jan 29, 2009
There is good news and bad news:

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.

Hank Paterson
John L Scott
503-844-9800
Web Reference: http://www.HankPaterson.com
0 votes Thank Flag Link Wed Jan 28, 2009
-Well there are other ways to get help with the downpayment and if you are in some areas you can get a grant as well.

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.

Regards;

Dirk Knudsen
Re/Max metro Gold
Re/Max Hall of Fame
Web Reference: http://www.theknudsens.com
0 votes Thank Flag Link Wed Jan 28, 2009
No. The tax credit is that, a tax credit, and it's only good for the year you BUY the home. You can't claim it until after you make your purchase.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com
0 votes Thank Flag Link Wed Jan 28, 2009
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