How much is the "First Time Home Owners" amount and can that money be used for a down payment.?

Asked by Richard Fuller, Garland, TX Fri Jan 23, 2009

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Terri Hayley, Other Pro, Dallas, TX
Fri Jan 23, 2009
Hi there,

Here are some of the requirements for the first time home buyers credit:

* The tax credit is available for first-time home buyers only.
* The maximum credit amount is $7,500.
* The credit is available for homes purchased on or after April 9, 2008 and before
July 1, 2009.
* Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
* The tax credit works like an interest-free loan and must be repaid over a 15-year period.

If you'd like to access it before filing your current tax return, you are permitted to reduce your income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable you to accumulate cash by raising your take home pay. Make sense? This money can then be applied to the down payment. You can adjust your withholding amount on your W-4 via your employer or through your quarterly estimated tax payment. However, I am NOT a tax professional so please check with yours for the guidelines and any possible ramifications.

If you would like, the law allows that you can elect to regard your home purchase in 2009 as if your purchase occurred on December 31, 2008. This means that the 2008 income limit applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns).

Happy to help,
Terri Hayley
The Hayley Group, Keller Williams
0 votes
Dallas Texas, Agent, Dallas, TN
Fri Jan 23, 2009
GREAT QUESTION: I am a Dallas realtor, and a Texas loan officer, you need to be qualified for a mortgage in order submit an offer on any property. Undetermined of any amount till your financial records are review, credit score, debt ratio, figure out your downpayment based on lender approval.

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0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Fri Jan 23, 2009
The $7,500 tax credit(interest free loan) is for after you close.
Do you have 3.5% for a down payment?
0 votes
RJ Avery, Agent, Forney, TX
Fri Jan 23, 2009
the amount is $7500 in the form of a 15 year no interest loan. To my knowledge it would be not possible to get it in time to use it as a down payment unless you were under contract by april 15 and somehow found someone that would loan you the tax return money based on the purchase of the house and filing on it on your 08 taxes.

However I havent been totally clarified on if you can file it on your 08 taxes if say your purchased a home now. I need to check into this my self.

I think at the end of the day you would need to be able to afford the 3.5% for FHA or 3% for conventional dp and maybe file your taxes and get the money back afterwards if you can close in the next month and a half or two and they will allow you to.

I will check into seeing if you can file the tax credit on your 08 taxes if you closed in 09 or im sure a fellow trulia member may know this answer.

Either way if you are unrepresented give me a call and we can discuss you situation and if you need to move quickly we can be looking at houses as early as later this afternoon. Plus when you use me as your agent you get 20% of my commission rebated to you at closing. Which would be a little extra to help out

Thanks
RJ Avery
214-682-0598
rj.avery@att.net
Web Reference:  http://www.findapadfast.com
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