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Do I Have To Pay Back My 7500 Tax Credit All Locations : Nationwide Real Estate Advice

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Showing results for Do I Have To Pay Back My 7500 Tax Credit [Clear search]
Mon Feb 16, 2009
Geovanni Roma answered:
Rosa,

According to the tax credit that is yet to be approved by the House and president, the credit applies to any house that you will be occupying as a primary residence and the amount of the credit is 10% of the purchase price of the house, up to $15,000.

Please, refer to the following link for more information. http://www.floridarealtors.org/NewsAndEvents/n1-020609.cfm

Geovanni Roma
Realtor
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0 votes 9 answers Share Flag
Mon Oct 26, 2009
Kary Krismer answered:
Laura, no one can tell you what the market will do more than about 2 months in the future, so don't listen to those who claim they can.

I would question though what other asset you think will earn a decent return. Most things that are safe pay very little. So to me it's really a matter of do you want to go to safety, not to something with a higher return. ... more
0 votes 14 answers Share Flag
Fri Feb 13, 2009
The Medford Team answered:
Muthu:

Tough times call for courageous measures. In just such an action, and with a resounding chorus of “Ayes,” the U.S. Senate voted on an amendment of the American Recovery and Reinvestment Act of 2009 (H.R. 1), that, if approved, would allow a tax credit of up to $15,000 for the purchase of qualified homes. This effectively doubles the existing $7500 tax credit and will help, hopefully, to pry open doors for more to be able to purchase a home in 2009.

Not only does this move increase the existing tax credit, more importantly it will include both new AND existing resale homes. This is certainly good news for builders.

If the bill passes through the House and is subsequently signed by the President, then 2009 buyers could look forward to qualifying for a tax credit of 10% of the purchase price with a cap at a limit of $15,000. This amendment would also give taxpayers the option of splitting the credit equally over a 2 year period.

Additionally, and possibly even more important, the change would be applicable to all buyers – not just first time buyers as has been the case with the old bill. In other words, the existing $7,500 tax credit has only been accessible to first time buyers. The proposed amendment allows ALL 2009 primary home purchases to qualify. There is the one significant caveat: investor based purchases will not qualify. Investors, those considered to be more financially secure in the existing marketplace, would still have to go it on their own with no credits. There are already existing tax breaks for those purchasing investment properties. These will remain in place.

If everything goes as planned, President Obama could sign this legislation into law very shortly.

How does this affect homebuyers? Many have been shell shocked by plummeting prices. We frequently hear buyers telling us that they are afraid to proceed for fear of loosing equity once they move into their home. For many, the money they invest in their down payment is the result of hard work and years of saving. They don’t want to take any risks they think could backfire, resulting in the loss of their hard earned cash.

It is hoped that in a climate of declining values and increasing difficulty securing financing, this move by the Senate will be the necessary impetus to move buyers off the bench and into the game.

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0 votes 12 answers Share Flag
Mon Nov 9, 2009
Barbara answered:
Congress is actively considering an expanded home buyer tax credit, and the Senate has approved the following improvements:
•The tax credit amount increases to $15,000.
â€The tax credit is extended to anyone buying a principal residence.
•The tax credit will apply to all purchases occuring within a year after the bill is signed into law.
•It is a true tax credit; it does not have to be repaid.
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0 votes 27 answers Share Flag
Fri Feb 13, 2009
Barbara answered:
The Housing and Economic Recovery Act of 2008 authorizes a $7,500 tax credit for qualified first-time home buyers purchasing homes on or after April 9, 2008 and before July 1, 2009. I strongly encourage you to consult a qualified tax advisor or legal professional about your situation. ... more
0 votes 8 answers Share Flag
Thu Feb 5, 2009
Lee Taylor answered:
Thu Feb 3, 2011
Steven Ornellas answered:
Hi Pc, what is typical is that Buyer's Agents do not rebate commissions; at least those that offer full service. Why? Well, would you choose a heart surgeon based on his rebate? Perhaps a stretch in comparing two professions, however, useful to make a point.

Best Regards, Steve
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0 votes 49 answers Share Flag
Tue Feb 3, 2009
New2phl answered:
Were you aware that this credit is interest free? if you wouldn't have the 7500 savings in 15 years, then you must not have the $ today to cover your regular taxes? Honestly, I would go for it, and just budget accordingly, saving monthly. However, if you know you will struggle paying it back, esp with the home purchase under your belt, there's no reason to jeopardize your financial situation. Just to note - there has been talk of the government deciding not to make those who participate in this loan pay it back, which of course would be even better. ... more
0 votes 5 answers Share Flag
Wed Feb 4, 2009
Terrence Charest answered:
Buyers are hoping that the homes get cheaper and the rates go down even further than they have been for..... hmmm decades.

Sellers are waiting for the home prices to go back up when it would be a perfect time to move from their smaller home to a bigger one.

This is the absolutely BEST time for investors to come in.

First time home buyers even get $7500 off the bottom line of their taxes (even though it needs to be paid back at $500/year).

People a strange creatures of habit.
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0 votes 62 answers Share Flag
Wed Jan 28, 2009
Lesley Denney answered:
Good Evening Steve,

First of all Steve it is great to know you want to be a Home Owner!
The best advise I can give you is to speak to a Real Estate Proffessional in your area, they can then advise you about the whole process of buying a home. Contact an Accredited Buyers Representative, you can find one in your area at www.rebac.org the agents with this designation have taken additional classes geared towards buyers and buyers needs.

If you cannot find anyone, please give me a call or email me and I will put you in touch with a Buyers Rep!

Good luck!
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0 votes 13 answers Share Flag
Fri Sep 6, 2013
Plano answered:
It depends on your income, debt, how much you plan to buy, etc. But if those are good, and you have atleast 3.5% down for an FHA loan, then yes.
0 votes 39 answers Share Flag
Mon Oct 1, 2012
Joey Marino answered:
He could help raise prices of properties by eliminating some of the "stale" inventory. Some older foreclosed homes that are damaged and deteriorating are still sitting on the market driving down prices after years of vacancy in good neighborhoods.
I wrote a blog a few months ago here http://activerain.com/blogsview/787390/How-to-Solve-the-Housing-Market-Price-Drop
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0 votes 55 answers Share Flag
Tue Jan 27, 2009
Chad Mustin answered:
Don't forget about the option of owner financing. Many sellers are in a position of offering owner financing to buyers they qualify, eliminating the need for the bank's approval. Sellers may be more willing to look on a more personal level and help you work on your credit scores rather than just write you off at the beginning. Ask sellers of homes you like to consider this option. ... more
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Tue Feb 3, 2009
Dallas Texas answered:
Yes on an investment property you still obtain annual tax deductions, your interest and downpayment in most instances higher. Confer with mortgage broker for $7500 credit, and CPA additional tax write-offs. ... more
0 votes 6 answers Share Flag
Fri Jun 26, 2009
Dana Schatzl answered:
As first time buyers you are entitled to a $7500 tax credit. This credit is paid back over a number of years, but is basically a no interest loan. Great deal for first time buyers.

Also, make sure you invest in a home inspection. It will cost $400-$500 dollars for a basic home inspection, but it will help you sleep at night knowing what you are getting in a house.

Also, I would recomend hiring a Buyers Agent who will work on your behalf. Listing Agents work for the Seller and are obligated to getting the best price possible for the seller. A buyers agent will help you get the house at the lowest price possible, as well as inform you of neighborhood issues, and any other issues that might arise.
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0 votes 7 answers Share Flag
Mon Jan 12, 2009
William Rudge answered:
Felipe, if you are referring to the new Federal First time Home Buyer credit you will receive this as a "tax credit" only when you file your 2008 or 2009 Federal Income Tax Returns. If you purchased the house in 2008 you will take the "tax credit" on your 2008 return and if you purchased your home after Dec 31 2008 you will have to wait for this credit until you file your 2009 return. You should consult a tax expert to insure your understanding of the credit. It is not a "free" program. It must be repaid over a 15 year period each year. The good news is that the $7500 is interest free so if you use the full $7500 credit you will only have to repay $7500, $500 each year for 15 years. Again, discuss this with a local tax expert before assuming anything. ... more
0 votes 6 answers Share Flag
Mon Jan 12, 2009
Jeff Kessler answered:
Heather,
Did you buy the home already? If so you will not have to start paying back the government for 2 years.
Here is their website you should be able to get all the questions answer there.
http://www.federalhousingtaxcredit.com/
Have a good one.
Jeff
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0 votes 5 answers Share Flag
Thu Oct 21, 2010
Beth Masland answered:
K - No one can answer the question of whether a home will appreciate or depreciate over the next two years, but it is a really short term to buy and resell and still get all your costs of buying and selling out of the property. So if that is your intent, to resell at the end of the two year term, I would recommend renting and saving as much as possible for your future purchase. However, have you ever thought of being a landlord and using your first home purchase as an investment? By purchasing a home as a first time homebuyer, you can get some really good rates and terms - so long as your credit is good - even in this market. The prices are down a bit, but not drastically as in other parts of the country, AND interest rates are low. It is a fabulous time to buy. When you need to relocate at the end of your two years, you can turn it into a rental property and you are on your way to becoming a true real estate investor! If you choose to investigate this path, carefully consider what type of home to buy now, so that it becomes a good low maintenance rental later. There are many other considerations, if you are interested in investigating this further I suggest you contact me through the website below or another trusted Realtor you may know. Good luck what ever you decide! I own a rental in Boiling Springs, and it is a great community, as are the many surrounding communities. I've lived in Cumberland County all my life - its a great place - WELCOME to Central Pa!
Beth
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0 votes 15 answers Share Flag
Wed Nov 3, 2010
Bonnie Crafa answered:
I would strongly suggest looking for your home now so that you start to recognize value in comparing the different homes and their ammenities. There is a great inventory, the mortgage rates are at an all time low and by all accounts we should be seeing the prices start to bottom out. Even if they do drop a little more, if you plan to be in the home for more than a few years and you find the "perfect" home, my advice would be to purchase it instead of throwing away your hard earned money in rent. History has proven that home prices always rebound and increase in value over time. Good Luck! -Bonnie Crafa, Century 21 Access America Wolcott ... more
0 votes 26 answers Share Flag
Mon Jan 26, 2009
Maria Holland answered:
Absolutely not! Now is a great time to buy. Prices are not only down, but interest rates are at an historic low. Couple that with the $7500 tax credit and it is a win.win.win situation for first time homebuyers. Your higher priced homes are the ones that will typically dive lower. Lower priced homes could go down slightly, but it will depend on the area. Areas like Antioch have been flooded with foreclosures; therefore, pushing prices of homes down further and further. Areas like Crieve Hall have remained relatively stable. People who are needing or very much wanting to move are reducing their prices in the negotiation process. Many homes have been on the market for a very long time, and homeowners are now more willing to take a lower priced, more realistic offer. I think the people who wait will be disappointed in the long run because I believe that interest rates are going to go up considerably thereby making housing less affordable.

I would love to help you find that first home. Check out my website at www.mariaholland.net or give me a call at 615-289-6056. Hope to hear from you.
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