is the deal still out there where you can take $14,999 in matching down payment or a tax credit for $7500? i

Asked by Cindy, Cuyahoga Falls, OH Mon Feb 9, 2009

forget who it was with.

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Joel Friday, Agent, Coon Rapids, MN
Wed Feb 18, 2009
From what I am hearing the new bill is for $8000 with no need to repay, definitely worth the effort if it is true. I can't get to the MLS but can look at the link, probably void now with new bill though.
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Cindy, Home Buyer, Cuyahoga Falls, OH
Wed Feb 18, 2009
CAN YOU GET TO MLS LISTINGS IN OHIO?
I COULD SEND YOU A LINK OF WHERE I SAW IT AT.
THANKS
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Cindy, Home Buyer, Cuyahoga Falls, OH
Fri Feb 13, 2009
ALMOST SOUNDS LIKE MORE OF A HEADACHE THEN IT IS WORTH.

so you have to pay it back, even if you don't have any taxes to pay.

according to the radio, the new amount is going to be $8000 instead of the $15000 that they said.

why are they even doing this?
what are you suppose to be doing with this money? what is it's purpose?
one way you said is if you borrow the downpayment. but, if you aren't, i am not sure why they are even doing it as they don't want you borrowing a downpayment. yuse to be you couldn't do that and you had to proove it was your money and that you saved it.

thanks for all your help. too bad you aren't in ohio
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Joel Friday, Agent, Coon Rapids, MN
Fri Feb 13, 2009
It gets confusing because it really has nothing whatsoever to do with whether you have taxable income or not. Step by step of how I see it working.

1. Buy a home using your favorite Realtor.
2. If you happen to buy before 4-15-09 then you can still get the credit when filing this year. Otherwise you would have to wait until next years taxes to claim the credit.
3. IRS sends you a check for up to $7500 (or $15,000 if the new law changes it) + whatever refund you would normally receive or minus whatever you owed in taxes.
4. The next 2 years you don't do anything and no interest accrues.
5. Years 3 - 17 you pay back 1/15th of the credit you received still interest free. I am not sure how they are doing the repayment schedule, they may send you a bill or they may have you add it to what you owe or subtract from that years refund.

And the best step of all is to enjoy your new home!

I am not a tax expert but, that is how I understand this program to work.

Direct answers to your last questions. yes, and you will have to pay it back, regardless of income status.

Joel Friday
Web Reference:  http://JoelFridayHomes.com
0 votes
Cindy, Home Buyer, Cuyahoga Falls, OH
Fri Feb 13, 2009
this gets more confusing all the time. (just when i think i understand it.)
so if you don't file taxes, you would file and then you would get the $7500 as a refund?
and then you would have to file for the next 15 years to pay it back, but if it is your only taxable income, then you wouldn't be paying it back? not sure???

thanks
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Joel Friday, Agent, Coon Rapids, MN
Thu Feb 12, 2009
No, you don't get the money/credit until you close and then file your taxes. So one theory is if you need the money for a down payment, you could borrow from a family member and pay them back right after you get your check. Of course you will need a nice family member to do that.

This doesn't count as income at all.

Joel Friday Homes
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Cindy, Home Buyer, Cuyahoga Falls, OH
Thu Feb 12, 2009
so it counts as income.
so does that mean they actually give you 7500 to put on the mortgage as a down payment?
i appreciate all your answers.
thanks
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Joel Friday, Agent, Coon Rapids, MN
Thu Feb 12, 2009
Cindy,

Yes you have to pay the credit back over 15 years, you are given 2 years no payments, all interest free.

You don't need taxable income to get the credit, it is actually added to whatever your return is for the year. The only catch on receiving the full credit is you need to buy a home for at least $75000 as the credit is for 10%. So if you buy a $60,000 home the credit is $6000.
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Cindy, Home Buyer, Cuyahoga Falls, OH
Thu Feb 12, 2009
thanks.
i heard you have to pay this tax credit back. is that true?

if you have no taxable income, then this tax credit is of no benefit, right?
0 votes
Joel Friday, Agent, Coon Rapids, MN
Wed Feb 11, 2009
I see the bill heading through congress has doubled the credit to $15000 but I still haven't seen anything on a down payment match. In theory, a nice relative could borrow you $15000 with an agreement you will repay them upon receiving the credit. They are allowing you to buy up until 4-15-09 and still getting the credit on last years tax return, so you could turn that money around quickly. I'll let you know if I hear anything on the down payment assistance.
Our county is giving away up to $10000 to those who buy foreclosed properties in troubled neighborhoods so you may want to check on your county and city web sites for similar programs.

Joel Friday Homes
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Cindy, Home Buyer, Cuyahoga Falls, OH
Wed Feb 11, 2009
NO. it was in january i read it somewhere and now i can't find it.

you had your choice of the tax credit for $7500 OR a matching down payment up to $14,999.

could it be fha?

are there any down payment matches out there now?
thanks
0 votes
Joel Friday, Agent, Coon Rapids, MN
Tue Feb 10, 2009
I am not aware of the 14,999 amount on any bill from congress, unless that is in the new bill.
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Cindy, Home Buyer, Cuyahoga Falls, OH
Tue Feb 10, 2009
WHAT ABOUT THE part where you could take the matching down payment of up to $14,999?
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Joel Friday, Agent, Coon Rapids, MN
Tue Feb 10, 2009
Cindy,

The $7500 tax "credit" is still available and may soon be $15000 depending on how the stimulus bill plays out. Just remember in either case you have to repay the credit, interest free starting 2 years later over a 15 year period.

Joel Friday
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