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7500 Tax Credit For Down Payment All Locations : Nationwide Real Estate Advice

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Showing results for 7500 Tax Credit For Down Payment [Clear search]
Mon Aug 11, 2008
Christina Cavins answered:

That is an excellent lender question, and you can email the lenders I recommend to get an answer. Their contact info can be found on my website at:

Christina Asad Edwards, REALTOR
2006 & 2007 Sales Masters Top Agent
mobile or text 937-205-4741
office 937-573-0082
fax 937-433-3561
Real Living Realty - #1 in OHIO!
Realty, Mortgage, Title, Relocation
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Wed Aug 13, 2008
Steve Matthews answered:
Hi Ben,

It would be wise to talk with a lender soon. There are many programs to do rehab loans and loans with little down. Because of all the recent changes in the market some programs are around one day and gone the next. At least talk with someone and find out what will suit your needs.

I would suggest talking with someone and getting an idea of what program you qualify for, then reach out to a realtor and start look at different locations where you will get the best value for your money.

There will be good deals today, tomorrow and when you are ready to buy.

Good luck!
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Thu Oct 23, 2008
Jeff and Ginny Mitchell answered:
The election will affect the market but probably not right away. You might want to read the Barron's Magazine article about market projections for next year. These economists are experts in the field and have some interesting and insightful answers. Just search for "Barron's Magazine online and then search on that website for the "Case-Shiller" report.

Inventory is key to turning around the market at this point. The first time home buyers $7500 credit will help somewhat. Keeping interest rates "as is" is certainly better than an increase for the real estate market. Work with a Realtor to carefully watch the inventory levels. When they start to decrease to normal absorption levels, then the bottom is over. It is tough to time it exactly though without the perspective of looking backwards. There are already some markets that are showing signs of improving, but real estate is local, so monitor your area. Good luck.
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Fri Aug 22, 2008
Tina Merritt answered:
Hi Leah - in Hampton Roads, the first time homebuyer credit will probably help us more than the other articles in the bill. The $7500 credit is a good incentive for 1st time homebuyers and while it has it's faults, the end purpose will hopefully justify the means. ... more
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Fri Aug 22, 2008
Joan Prout answered:
I'm assuming you are renting now. Do you know that because you pay rent with money you have already paid income taxes on, you are passing up an income tax deduction that would save you thousands of dollars each year? Because the part of your monthly mortgage payment that goes to pay interest and property taxes is fully tax deductible, it's in effect, paid from your before tax income. In the area where I sell, the tax savings if you bought a $500,000 with a $450,000 mortgage at 6.5% ($8000/yr taxes and $500/mo. maint.) your monthly payment of $4011 would cost you about $3000 less over the course of a year than paying a $3000 rent. It's like getting a month free (or, more precisely, a renter pays the equivalent of a 13th month of rent in income taxes).

Congress just passed and the President signed a bill yesterday giving a tax credit to first time home buyers of up to $7500.

You asked if prices will keep going down. In NJ, there are still more properties for sale than buyers are buying each month, but the discrepency is shrinking. I am already seeing the inventory of some popular types of properties in desirable neighborhood sell out. When Macy's has a sale on coats, the most popular sizes and colors have already sold out.

If you have good credit, a downpayment (even a modest one), and you don't expect to leave the area in the next year or so, you'll probably kick yourself later if you DON'T buy now, when the selection is best.

Joan Prout, MBA
Broker Associate
Jersey City, NJ
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Thu Oct 2, 2008
Sj209 answered:
Save up for a down payment. It will be very difficult to obtain reasonable financing without a decent down payment.
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Sat Sep 6, 2008
Luke Allison answered:
You sister can be a non-occupant co borrower for an FHA loan. However, your combined incomes (essentially just hers) would have to produce a debt-to-income ratio that would work for FHA guidelines. If you have any questions, feel free to contact me.
Luke Allison
Flagstar Bank
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Sun Aug 10, 2008
Amanda Edwards answered:
Hey Nicole, This process is really not that hard. The only first time buyer thing I have recently been frustrated with, is their anxiousness to get a low price and not really consider what they are getting for that price. Be sure of the area and the condition/ layout etc. of the house you make an offer on. You have to like it, not your agent, not someone who tells you "it's a good deal". Also, realize if you get a lower than average price or consider an older house, there will be trade-offs such as work needed. Just stay within your means so you can live comfortably once there. You will be a little surprised by extra bills such as property taxes and homeowner's insurance and repairs during your first year or two. Therefore, keep the price well within what you can afford.
Consider school districts and your compatability with potential neighbors.
I have some buyer tips on my website. Speak with a mortgage lender before a realtor so you can have realistic goals before you get your heart set on a house that is not in your price range. Be realistic.
I really don't mind giving you more advice if you have more questions.
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Tue Jul 29, 2008
Emily Medvec answered:
The housing bill will give lst time homebuyers a TAX credit of up to $7,500. A lst time homebuyer is defined in the legislation as someone who has not owned a home in three years. The TAX credit is for 10% of the purchase price and then up to $7,500. Homebuyers are eligible if they purchased AFTER 4/8/2008 and BEFORE 7/1/09. This is a TAX CREDIT and not a deduction or credit against closing costs. The money will eventually have to be repaid as the bill/law is written over a 15 year time period, beginning TWO years after you purchase the home. The bottom line is the TAX credit is more like an interest free loan because if you are able to take the full $7,500 credit, your income tax bill will increase by $500 each year for 15 years. If you sell before that time period, you will have to pay back the government the balance from your proceeds. The new legislation is complicated and I recommend you talk with your lender, CPA and Realtor about how best to benefit from this new housing bill and its many different remedies to stabilizing the housing market. Good luck, Emily Medvec ... more
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Mon Aug 11, 2008
Nicole Bailey answered:
It makes sense to wait unless you find the perfect home/deal today! The credit is small enough that it could be negotiated for you off a sales price today on a home you LOVE!!!!


All the best,

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0 votes 10 answers Share Flag
Fri Dec 25, 2009
Homa Moaddel answered:
Hi Jeremy,

If you believe that the bottom has not reached based on all these evidence and information. You should wait. After all buying a home is personal, and emotional. Every buyer has its own reason. You have yours. Nevertheless I believe election year and the first year after are when we find the best prices. I am a buyer too and have my own reasons and belief.


Broker Associate
Prudential California Realty
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Tue Aug 26, 2008
The Hagley Group answered:
For consumers, it does a couple of things:

The FHA will be allowed to insure up to $300 billion in new 30-year fixed-rate mortgages for at-risk borrowers in owner-occupied homes if their lenders agree to write down loan balances to 90% of the homes' current appraised value. (Helos distressed home owners)

For sellers...

1) Conforming loan limits increased permanently to $625,000 (great for California!)

2) The bill includes a tax refund for first-time home buyers worth up to 10% of a home's purchase price but no more than $7,500 (The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments. )

3) The bill eliminates a program that has allowed sellers to provide down payment assistance.

That's it in a nutshell....I have more analysis to do!
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Sun Oct 4, 2009
Tommy Burris answered:
The House passed a bill. It may look very different after it gets out of the Senate..... So, it would be best to wait until we have a final product before we get too excited.
The $7500 you speak of is a tax credit.... tax deduction. It is NOT a free gift to pay closing costs or anything like that.
Based on what I read, it is indeed paid back over time. We will see how that looks when we have a final bill.
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Wed May 6, 2015
Natascha M Katz Katz answered:
Wish I knew. All I can say is there are some great buys now and with rates so good I cant imagine why someone would want to take a chance and wait. It would be nice to know when or if we have hit the bottom. Both Tascha and I think once the election is over things will get better however that is just our opinion.
Good luck and if you need help we specialize in Alpharetta, just let us know.
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Sun Jun 15, 2008
Todd Norsted answered:
Hi Joe....

My opinion is the market is at or very near the bottom, and by waiting you run the significant risk of a rise in interest rates, which limits your buying power.

I short, my opinion would be buy now or sometime in the reasonably near future.

Thanks, Todd
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Sat Dec 6, 2008
Craig Harding answered:
I would personally recommend Alice Roe with US Bank as a great source for an excellent mortgage. She is still able to provide folks with several option when they have a small or minimal down payment. Her number is 1-866-306-8666 ... more
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Wed Jan 21, 2009
Melinda J. Robison answered:
JK, I would highly suggest that if you have not already, find yourself a buyers agent that is going to protect your best interest especially when it comes to negotiating. I am not from that state so I can't tell you if they are priced well or not. This is where a buyers agent can really help you out tremendously.

Also why not look at a few different areas and see what you prefer the most? It does not hurt to get an idea of different areas. It will probably give you more peace of mind especially being a first time home buyer. That way you can be confident you are making the best decision for you and your husband.

I hope this information helps! Best Wishes!
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Wed Aug 5, 2009
Nancy Doyle answered:
I think your right on track. There are a lot of programs to help buyers get into homes. Sellers are motivated and helpng in most cases. I have a lender that could help if you do not already have one. Give me a call or e-mail me and I would be happy to help. I can e-mail you some listings so you can get an idea of what you are looking at. You now have a lot of choices in that price range.
Take Care,
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