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$7500 First Time Homebuyer Tax Credit

Written by Nickel - 144 Comments

Last night, a reader named Heather asked the following question:

We are debating about whether or not to take the $7500 from the government for being first time home owners. In 2 years, we will have to start paying “them” back $500 for the next 15 years. If we were to sell our house in that time and not make a profit, the debt would be forgiven. I’m not sure I want to owe anyone anything, but hubby thinks of it as an interest free loan… What’s your take on this?

Oddly enough, I was in the process of writing about the first time homebuyer credit when her question rolled in. Weird. Anyway…

The First Time Homebuyer Tax Credit

When it was first proposed in the “Housing Rescue Bill,” the first time homebuyer tax credit was, as Heather noted, little more than an interest free loan (more on this below).

According to IRS guidance, the credit:

  • Applies to homes purchased after April 8, 2008 and before July 1, 2009
  • Reduced a taxpayer’s tax bill or increases their refund dollar-for-dollar
  • Is fully refundable, meaning that you can get it even if you owe not taxes


The amount of the credit is 10% of the purchase price of the home in question, up to a maximum of $7,500 for single taxpayers, or married couples filing jointly. There are, however, a couple of catches…

For starters, the credit is phased out based on your modified adjusted gross income (MAGI). For married couples filing jointly, the credit phases out between $150k-$170k. For all others, the phase out range is $75k-$95k.

The other problem is that it’s not really a credit. Rather, this “credit” has to be paid back in equal installments over the next 15 years along with your taxes. Not such a great credit anymore, huh?

That’s the bad news. The good news is that changes may be afoot…

Conversion to a True Credit?

House Democrats recently outlined their $835 billion economic stimulus package, and one of the things that they’re hoping to do is make the homebuyer tax credit a true credit — with no repayment necessary. Of course, this is still subject to negotiations between the House and Senate, and to passage of the economic stimulus package itself, but…

If it happens, buyers who qualified for the credit in 2008, or those who do so in 2009, will be relieved of the repayment requirement. Is this enough to make you go out and buy a house? Probably not. But if you’re buying one anyway, be sure to take advantage.

Update: The Senate just passed an amendment to the stimulus bill that would create a $15,000 tax credit with no repayment requirement. Moreover, it would be available to all purchasers, not just first-time homebuyers.

Published on January 23rd, 2009
Modified on December 18th, 2009 - 144 Comments
Filed under: Economy, Real Estate, Taxes

About the author: is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

Related articles...

» $8,000 Homebuyer Tax Credit
» Time to Start Paying Back the $7500 First-Time Homebuyer Tax Credit
» $15,000 Homebuyer Tax Credit
» Refundable vs. Non-Refundable Income Tax Credits
» First Time Homebuyer Tax Credit Followup
» Will the Homebuyer Tax Credit Be Extended?
» Homebuyer Tax Credit Extension in the Works
» Did Congress Make the Homebuyer Tax Credit Retroactive?

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144 Responses to “$7500 First Time Homebuyer Tax Credit”

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  1. 1
    Heather Says:

    THANKS!! Love your site.

    Heather

  2. 2
    Angie Says:

    So the government wants to give money… to people who don’t make a lot of money… So they can get into a mortgage that they won’t be able to pay back… Makes perfect sense to me!

    Maybe I’m just jealous that I make too much to qualify, but won’t be able to save up enough money for a downpayment for 5+ years. (Yup that’s probably the main reason). That and the fact the government thinks just giving away money fixes things.

    Did the tax rebate in 2008 make any noticeable difference for Americans or the economy?

  3. 3
    Kev Says:

    Angie’s Comment:

    “Maybe I’m just jealous that I make too much to qualify, but won’t be able to save up enough money for a downpayment for 5+ years. (Yup that’s probably the main reason). That and the fact the government thinks just giving away money fixes things.”

    I couldn’t agree more and I am definitely jealous! Even if remains an interest free loan it’s still an awesome deal – I can’t go out and borrow 7,500 dollars interest free! It’s all starting to get a little old. I realize that we will all benefit from speedy recovery in the housing market, but I’m failing to see how this “credit” will assist with that.

    I purchased my home around six years ago. It was months of spreadsheets, “what-If” scenarios, and educating myself on as much of the process as possible. It was also months of looking at all the homes in my price range that I never would want to buy. I stuck to my plan though and I refused to listen to all the people who were telling me what I could afford. As much as I wanted to buy into what they were selling, I knew that the only person on this planet that was able to tell me what my price range was me and that the brand-new homes in the brand-new subdivisions just wasn’t in the cards. At least they weren’t if I wanted to be responsible.

    Now – b/c so many other people didn’t approach this in the right way, there is all these “benefits” out there that my tax dollars paid for – yet I will never be eligible for.

    I would love to see a “You’re Not A Total Moron” credit! Sorry for the drawn-out post. This is just a sore-subject with me…

  4. 4
    Heather Says:

    To be fair, not everyone receiving the credit were irresponsible buyers. We live in the DC area where the housing market was out of control. We waited two years and watched the market like a hawk. When the house in the neighborhood we wanted became available for a price we could afford we jumped on it. We also spent hundreds of hours with spreadsheets and budgets to make sure we were not being irresponsible. We purchased our home before the credit was announced. While the credit does applaud irresponsible behavior in some it is not the case for all. With the tax credit and with refinancing our existing loan we may be able to pay off our 30 year loan in half that.

    I totally understand your frustration. Had we purchased our home 2 weeks prior we would not qualify.

  5. 5
    CK Says:

    I agree too, this is some of the biggest crap I’ve heard. What about all the other homeowners out there. This is either going to be a bonus for people that weren’t expecting it or people who didn’t think they could afford house and still probably can’t are going to overextend themselves cause they are going to get this 7500. And when the money runs out they’ll be in the same situation. I’m fine with a credit that stimulates the economy, but I don’t think this will work.

  6. 6
    Brandon Says:

    “House Democrats recently outlined their $835 billion economic stimulus package, and one of the things that they’re hoping to do is make the homebuyer tax credit a true credit — with no repayment necessary.”

    could you provide a link that has that info?

  7. 7
    Ross Says:

    I thought I would also share a clarification I received on the the first time homebuyer credit.

    The credit does not have to be paid back if you sell your house at or below the “adjusted basis price” of your home. The adjusted basis price is calculated by taking the purchase price of the home and subtracting the amount of credit you received.

    For example, you buy a house for $200k, and get a $7500 credit. Your adjusted basis is $192500. If you sell your house for that price, you don’t have to pay the credit back. If you sell your house for $195000, then you will have to pay back $2500 on your next year’s return.

    Thought this might be helpful, especially to those who have seen their housing price decline recently.

    And for the record, in response to the comments above, I completely agree with Kev: people need to be responsible for their own personal finances (just like corporations should be held responsible also…) and I think that it is a little crazy that credits like this are actually available. I have personally seen Builders and lenders using these credits just as marketing material, and as another way to entrap those who don’t know any better, and don’t research the topic on their own.

    However, if I am offered an interest free loan like this, I am sure going to take it and stick it in a high-yield savings account.

  8. 8
    Tom Says:

    I’m pissed about this credit. I bought my first home at the end of January 2008 so I don’t qualify for this credit (which I would, for sure, take).

    The qualifications should extend back to the beginning of 2008. Such crap!

  9. 9
    Rhiannon Says:

    Tom, you think that’s bad. We bought our first home *one week* before the credit takes effect!

  10. 10
    Getz Says:

    $835,000,000,000………………please pass the pepto.

    And I have to comment on an above comment too. Yes, this may help some intelligent people who have behaved responsibly, but your comment insinuated that the irresponsible idiots were in the minority, which is not the case AT ALL. The vast majority of this problem has been caused by idiots who overextended themselves on an enormous mortgage with insane interest plans, and probably had butt loads of other consumer debt on top of that. I have been interested in buying a home for a couple years now but I know I have too much debt and not enough saved up for a 20% down payment(which was a restriction that never should have been loosened) yet to actually do so. Even against my own mother’s “advice”, I have already passed on potential “opportunities”. I refuse to be a part of the problem.

  11. 11
    mz Says:

    If you’re going to buy a house anyway, then it’s a no-brainer that you should take the credit – even if it’s NOT a true credit. You simply cannot beat a 0% loan.

    The thing you SHOULDN’T do is a buy a house to get the $7500 credit and then take a huge capital loss on the sale (beyond the $7500 credit).

    Anyhow, all this amounts to is the government trying to get involved in the housing market and trying to manipulate the prices (keep them from falling and/or push them higher). Meanwhile, tax payers who do not own a house are getting royally screwed in two ways:

    1. Their share of the national debt goes up.
    2. It makes it even harder to buy a house because the governmental policies are trying to keep prices high.

  12. 12
    Angie Says:

    Regardless of whether it is a credit or a loan, I personally think it is encouraging the exact people who SHOULDN’T be buying a house to buy one. If you can’t save the money for a downpayment yourself then you probably haven’t done the planning involved on taking on mortgage debt.

    It would be one thing if they were somehow subsidizing the interest rate, and you still need to come up with the downpayment yourself. Coming up with a proper down payment yourself is half of proving that you deserve it right? Proving that you are financially responsible enough to take on the mortgage debt. If you have assistance its cheating.

  13. 13
    Jennifer Says:

    My son is in the process of purchasing his first home. He is trying to decide whether to take the credit in the 2008 tax return or the 2009. Where can I find more information about the people who qualified in 2008 being able to take advantage of the new stimulas package that does not require the tax credit to be repaid?

  14. 14
    JB Says:

    This rule is such crap! I emailed my congressman to find out why they picked this date in April. I closed on my house in early March!

  15. 15
    elementaryfinance Says:

    The idea is nice but while people don’t have jobs and the economic climate is such that people are saving money and holding off on any financial gambles, I don’t know how much it will help.

  16. 16
    occiferofthelaw Says:

    I think this is a nice backup plan to those who have put nearly everything they have down for a downpayment on their first home. My wife and myself nearly depleted our savings account to buy a home…(which I’m sure some of you will say was a dumb idea anyway…but locking in an interest rate of 4.5% and buying the new house for 10k under what it sold for two years ago…was hard to pass on.)

    This tax “credit” will be placed in our savings account immediately and begin to draw interest. We will not use this money unless absolutely necessary, and will be used as a last resort if needed for home repairs, loss of income, etc. If we never have to use any of the money and still are required to pay it back….the interest accrued will be money earned. Maybe if we are lucky…the bill will be passed and we will not be required to pay it back at all.

    I do not claim to be a financial guru…so any constructive criticism/ comments would be greatly appreciated.

  17. 17
    renegade800 Says:

    My wife and I are in the process of buying a brand new home, we were approved for 250,000. we are first time home buyers. Now you all say that most are irresponsible, well eventhhough we were approved for 250 we are buying a new house for 113500. this same house sold last year for 205,000. I am taking the 7500 tax credit simply to finish the basement and bring up its worth.. Dont say most are not responsible, i could have bought something for much much more but decided not to, i didnt want to be irrespnsible.

  18. 18
    tiffany Says:

    I’m settling on my first home Feb 20th and I plan on taking this credit to finish the basement. Yet my boyfriend says it’s a bad idea to owe the federal government anything. Wouldn’t it be nice if it was decided on being just a credit after all???

  19. 19
    Kev Says:

    I never said that the people receiving this credit were irresponsible buyers, but I do believe this “credit” was born out of irresponsibility. Whether or not the irresponsibility was on the part of consumers, the lenders, or the government can be debated from now until the end of time – whatever… There’s is plenty of blame to go around.

    Some of you said you are going to use this credit to improve your new homes by adding things like finished basements. Others have said they are going to save / invest this money and use as it as an interest-free emergency fund. While I agree that those are very nice options to have, I am failing to see how that will help the current situation.

    I know this may sound somewhat juvenile, but my core issue with this credit is that it isn’t fair and while it may be helping some – it is hurting others.

    Anyone who receives this credit is getting a financial advantage over the people who don’t, even though we are ALL paying for it. I don’t get to build my emergency fund using a fifteen year interest-free loan. I don’t get to finish my basement and increase the value of my home by using an interest free loan. The only thing I get to do is PAY for it. Others will be paying for it too and many of them don’t even own homes – some of them NEVER will.

    The government should not be using my money to give anyone an advantage over me. Our tax dollars should never be used to pick life’s winners and losers – this goes against everything that is free market.

    This credit is Washington’s sad attempt at getting people to start buying homes again. The best they could come up with was “Well… If people can’t afford to buy them, then we will force others to help them buy them!” How is this right? How is this good for us as a nation?

  20. 20
    renegade800 Says:

    Kev you bring up lots of good points, but if you dont yet know this; the government sucks our money from us for many stupid things, this is just a small part, and eventhough it is small it is still something….. All you, I and or any other person that pays taxes is, is cattle for the government. we bring them money and thats it…… Look how much they make a year…. We are all screwed. No body can change that.

  21. 21
    Jen Says:

    actually, the change has been included in both the House and Senate versions of the bill now. But repealing the repayment provision applies ONLY to houses purchased in the first six months of 2009 – houses purchased in 2008 still require the repayment of the “credit”. Also, if you take the credit in 2009, you DO still have to repay it if you sell the house within 3 yrs.

  22. 22
    Funny about Money Says:

    I must be awfully dumb. I’m having a hard time seeing how forking over an interest-free loan (or a free handout) to recent home-buyers — who have presumably ALREADY purchased a house or have made the decision to do so, right? — is going to do much to turn the housing industry around.

    If you bought a house in 2008, this isn’t going to cause you to run out and buy another one, nor is it likely to increase the value of your home. It might be that if you used it to finish your basement, the money would help Home Depot’s business and maybe keep a handyman or small contractor going for a few more months. If you put it in a savings account and you don’t use a credit union, it might enrich a banker a bit more, and you’d get all of what? 1.5% interest on it? Around $580 over the five years before you have to start paying it back? My house has dropped in value one heckuva lot more than that.

    But if you spend it, soon enough you end up with another $500 (!!) monthly payment, with which you will be saddled for 15 long years. This, on top of your mortgage, your car payment, your utilities, your insurance, your taxes, and your credit-card bills. Yup. Everyone needs that.

    If you sell the house — which unless things change real quick now, you will do at a loss — you have to repay the $7500 out of the sale proceeds, leaving you with even LESS return on the sale than you would have in the current market, which presently is a negative return.

    Meanwhile, the rest of us, who continue to see the value of homes we bought within the past six years or so falling below what we paid for them, get no “stimulus.” We just get laid off.

    Well, I could do without a $500/month bill for the privilege of being stimulated. But if Congress is going to change this to a handout, how’s about giving us all a handout? Or maybe a job?

  23. 23
    renegade800 Says:

    Its not 500 a month, it is 500 a year, now it does not have to start being repaid for 3 years after the credit is received.

  24. 24
    Brad Says:

    Someone had stated that if the bill passes that only repayment will be required by those who purchased a home in 2008 and if you bought a home in 2009 let’s say today Jan 25th 2009…you wouldn’t have to repay it at all.

    Can someone, anyone, show me where to find this proposal I would like to read it myself.

    Website?

    Thanks,
    Brad

  25. 25
    Ross Says:

    You can find more about the current proposed “American Economic Recovery and Reinvestment Plan” here:
    http://waysandmeans.house.gov/.....section=50

    All of the tax implications are rolled into this pdf:
    http://waysandmeans.house.gov/.....taxsum.pdf

    Including the provision:
    “Refundable first-time home buyer credit. Last year, Congress provided taxpayers with a refundable tax credit that was equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to $7,500) by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008 and before July 1, 2009. Taxpayers receiving this tax credit are currently required to repay any amount received under this provision back to the government over 15 years in equal installments, or, if earlier, when the home is sold. The credit phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return). The bill would eliminate the repayment obligation for taxpayers that purchase homes after January 1, 2009. The provision would retain the credit recapture if the house is sold within three years of purchase. This proposal is estimated to cost $2.562 billion over 10 years.”

  26. 26
    Tracy Says:

    My only problem with the credit is why was is not retro back to Jan. 1, 2008. I closed on my home on March 28 and I had an original close date of April 11. If I would have known something like this would take place I would have waited to close on April 11. I would definitely take the credit, if I was eligible. Have anyone heard about any changes with the retro date?

    Thanks
    Tracy

  27. 27
    jared Says:

    I think this credit is aimed at people such as my wife and I. We are in the process of buying a house right now. We have a decent down payment that we took a long time to build up, but laying it all on the line would leave us both uncomfortable and possibly vulnerable in our new home. Having this credit takes me from being nervous to confident in my purchase as now I don’t have to deplete my savings to do it. If the credit helps more people who are capable of repayment make the commitment to buy, then it will in fact help out the housing market which is good for everyone, homeowner or not. Some may not see it that way, but luckily they aren’t the ones voting on such things.

  28. 28
    Brad Says:

    ROSS,

    The ways and means only discuss the post Jan 1 2009 purchase. The S. 253 and the discussion from fixhousingfirst.com are suggesting changes to the current tax credit. The ways and means you refer to talk only to changes in anything Post Jan 2009. Take a look at http://www.fixhousingfirst.com Does anyone have any suggestions on where to find proposed bills sent to from the house to the senate as this is where the stimulus/bill are at now?

    Thanks,
    B

  29. 29
    Tardif Says:

    We bought our house (that had been on the market for over 2 years empty) Feb 1st, had to work night and day for 2 months just to be able to live in it…Our so called loan would have only been 3,850 however that would have paid for new windows for our house. (We live in rural IL). Why April 8th..strange date…

  30. 30
    Rich Says:

    People have to realize that a no interest loan is free money! just not $7500 worth of free money at least not right away. Even if you don’t need the $, why don’t you take it and just put it toward the principle on your house and its that much less you have to pay in interest! Better yet if you have a car loan or students loans that you can’t write off the interest from your income pay those off. Even take it and put it in a high yield savings account at %3 that’s almost 4K free by the time you pay it back in 15 years or better yet buy a 15 year bond (I know its kind weird re-lending the government money it just lent you) but there’s nothing to say you can’t and at the end of that the loan will almost be free. Point there is no reason in anyone’s situation why you should not take this unless you are just really undisciplined and bad with money, in which case you probably shouldn’t be a home owner anyway.

  31. 31
    Kyle Says:

    Yeah this blows i bought my house FEB 29th 2008 and now i cant recieve this credit. Why the heck is is April 9th, the economy had already nose dived way before that.

    I would so drop this on my home to lower my interest payments if i could recieve it though. If people use this money right it very well would help stimulate the economy but these things usually get put into the wrong hands, people that will go out and buy a newer car or take vacation and something else that is retarted with the money, which you have to back.

    AHHHHH i am so mad. And for the person that is complaining about having to pay it back. ITS 0% interest at $500 dollars a YEAR, dont tell me you cant come up with that.

  32. 32
    tyler Says:

    Hey guys, this is a great blog, very informational and thanks to all who have contributed. My question is: If we purchased during the allowed period, and are planning to sell our home as a short sale in March 2009 or so, should we take the credit? Will me and my wife me required to pay back the credit even though we are selling our $230,000+ home for a $30,000 loss in a short sale? Thanks in advance for your help guys.

  33. 33
    Rich Says:

    Tyler: from what I understand and you really need to check on this but you definitely should as I do not believe payback in required if you lose money on the house. Again check and I don’t know the specifics of your short sale but look into it.

  34. 34
    tyler Says:

    Rich: Thanks for the response. Yes, that is my understanding as well, but I cannot find documentation of this and really do not know who to ask, as we do not employ an accountant. Thanks again, any additional comments are greatly appreciated.

  35. 35
    Ross Says:

    Tyler: See comment 7 above. I asked an official tax advisor about the same question.

    If you look at tax topic 611 on the IRS website:
    http://www.irs.gov/taxtopics/tc611.html

    You will see the exception listed out:
    “In the case of a sale of the principal residence to an unrelated person, the increase in tax due to accelerated recapture is limited to the amount of gain (if any) on such sale. For purposes of calculating gain, the adjusted basis of such residence shall be reduced by the amount of the first-time homebuyer credit allowed, to the extent not previously recaptured. In the case of an involuntary conversion, recapture is not accelerated if a new principal residence is acquired within a 2-year period. No amount is recaptured after the death of the taxpayer.”

    The adjusted basis price is calculated by taking the purchase price of the home and subtracting the amount of credit you received.

    I am not a tax advisor, but this is the exact information that my advisor gave me.

  36. 36
    renegade800 Says:

    In Tylers case it might be looked at differently, being that he is losing his house, they may not give it to him. If you can get it great, but just as people have been saying “people are taking ADVANTAGE of this, when they shouldn’t own a house in the first place” This must be one of those “irresponsible Buyers” Now this could make people made!

  37. 37
    thomas Says:

    If you can get it and pay down debt or invest the money to fully fund your IRA then do it. This is truly a gift and there really isn’t a negative to it. You don’t even get a credit ding!

  38. 38
    Zach Says:

    Bought a house that closed April 15th, 08. ; ) I am active duty and was wondering if there is any exemption if I get PCS orders out of this duty station. Do I just keep my mortage and repay this, if I don’t even live in the house; although it says it has to be your primary residence… Kind of stuck, I never know when I will have to sell my house, I gets thats part of being in the Mil though. Just can’t wrap my head around not taking it though, seems too easy… Just don’t want screw myself

  39. 39
    Heather Says:

    We are also military. I’m guessing that since the home was your primary residence at the time of the credit it will not be an issue. We will probably have to rent ours if we have to PCS as well and will be taking the credit.

  40. 40
    Matt Says:

    I closed on my house 1/16/2009 when will i recive my 7500 loan, this years tax return 09 or will i not see the money till 2010? If I could get a answer on this it would realy clear things up.

  41. 41
    renegade800 Says:

    Matt you can claim it on your 2008 or 2009 taxes, so you can get it soon, your choice

  42. 42
    Jennifer Says:

    There is discussion in the new stimulus package that if you purchase a home in 2009 that the $7500 would not have to be paid back if you own the home for 3 years. It is been my confusion if you claim it on your 2008 return that you would fall under the original plan which would make you pay it back $500 over a 14 year period of time. Still not clear. So when you file if you claim it for 2008, don’t you have to state that you purchased the house in 2008 which would make you part of the original plan? I would think a person would wait and file it on 2009 to make sure that it was not a loan and a true credit…… still confused.

  43. 43
    Bryan Says:

    Jennifer,

    I am wondering the same thing as yes you can file for it on your 2008 return even if you purchased the home in 2009. For example, my wife and I just purchased/closed on a home on January 23, 2009. If you look at the 5405 form you have to put the date of the purchase and also (line 3) check off if you are taking the credit for a home purchased in 2009 on your 08 return. I think this will be a great tax law question because the form clearly designates a spot for 2009 home buyers to claim on the 2008 form while also distinguishing them from the 2008 buyers by checking a box that the purchase is in 2009. I am not sure who the best person will be to check with whether it be someone from the IRS, or your House Rep or Senator. Lets all work collectively to find this answer and then post it up here.

  44. 44
    Booch Says:

    Same question here…closed on the 2nd of January…hopefully I will just miss repayment requirement…but I would also like to claim it now to use for updates on the house.

  45. 45
    Jeepy Says:

    Just have a repayment question. Is the $500 due on the taxes at the end of the second year? If I get normaly say get $1,500 refund, the second year I’d only get 1,000. And, the $500 will go for the repayment? Just wondering. Thanks!

  46. 46
    Jennifer Says:

    Jeepy,
    It is my understanding that is the way it works. But if you filed it on 2008 taxes your repayment would not start until your 2010 taxes are filed. So it give you a couple of years to start repaying.

  47. 47
    Jennifer Says:

    Bryan,
    I am glad that you have the forms in front of you. I had not seen them. It does give me hope that we may be able to file for the tax credit in 2008 when we are buying in 2009 and not have to repay it if this new part is approved. I would still like an official answer from somewhere.

  48. 48
    Mike Says:

    I bought a house last year and not one realtor knew about this. I am eligible to get it. The non-repayment stimulates knothing as I’m already in a new home. This is robbery from tax-payers who didn’t buy a home last year. I feel like I’m a recipient of the human fund. (Money for people)

  49. 49
    Sam Says:

    This $7500 tax credit seems to be quite UNFAIR to folks who bought their home prior to Apr 9 ‘08. I don’t want to sound like a jealous kid who bought in 2006, when the home prices were much higher, mortgage rates not as attractive as today and is right now finding it tough to even refi bcoz of lower appraised value. While those who were anyway planning to buy in this period are getting all the advantages – lower home price, great rates and this windfall money. As someone said here before, how does a retroactive credit help in bringing in more new home owners who wouldn’t have otherwise thought of buying one. If the Fed’s point here is to assure propective home buyers that home prices will not fall anymore then why not present this credit as an insurance upto 10% or $7500 if the home prices were to fall and they had to sell theirs in the future. The bottomline is – will this credit really make an impact whatsoever to the economy? Time will say…

  50. 50
    Doc Rock Says:

    Sam,
    Imagine how I feel. I closed on May 1st, so I AM eligible for the credit, but according to what’s in the currently proposed stimulus package, I will STILL have to repay MY tax credit, but those that qualify for the EXACT SAME tax credit, but who closed AFTER January 1st (instead of the original April 9th date) WON’T have to repay it. Now how fair is THAT?
    Why should I have to repay mine but they dont have to repay theirs.

    Either everyone who gets the credit should have to repay it, or no one who gets it should have to repay it. It make no sense, and I emailed Sen Isakson of GA, who sponsored the new Bill (Senate Bill S.253) and told him so. I encourage everyone do so as well. Let your State Senator and Congress person know as well.

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