First Time Homebuyers Tax Credit

[stretch]

A friend of mine who is a realtor said it looks like it will be renewed in 2010, and raised from $8,000, to around $15,000 or something.

anyone else know anything about this? i've been thinking about buying a condo, but if this is really going to happen, I will probably hold off a while longer and get the bigger tax credit :smokin

[BacktoBasics]

I was hoping for this. If I can end up building I wouldn't close until sometime in Feb-Mar which would have ruled me out this year.

[stretch]

yeah. supposedly they are calling the plan "something else & better" or something weird like that. i dunno. i hope it goes through.

[BacktoBasics]

This thread needs more input

[stretch]

I agree

what the hell

[CosmicCowboy]

Nothing is official. There has been some speculation that they "might" want to do it but nothing has been passed. I would actually be surprised if they continued and increased it.

[CosmicCowboy]

Haqven't you been listening to your president? The recession is over and the housing market is recovering. Why would they continue the program?

[Ed Helicopter Jones]

We get the latest and greatest tax updates here in our office, and word right now is that there is a pretty big push to extend this credit by a few months, but I wouldn't expect the amount to increase. That's the word as of today...but this could change quickly as we all know.

[DannyT]

This rain is killing my process. They are waiting to pour the foundation but are having to hold of due to the rain. So its going to be close. I dont want them to rush to try to make the deadline and end up fucking something up. But I do hope they extend the process by a couple of months.

[Das Texan]

Its going to be extended.


I havent heard anything about it being raised though, that would really piss me off, more than it existing in the first place.

[bostonguy]

It'd be great if it does get extended

[baseline bum]

Why the fuck do homebuyers deserve a tax credit more than renters do?

[CubanMustGo]

Why the fuck do homebuyers deserve a tax credit more than renters do?

And why only first-time homebuyers at that?

[Frenzy]

Haqven't you been listening to your president? The recession is over and the housing market is recovering. Why would they continue the program?


good point... how ever the murder rate would go up...cause all those who rushed to close by nov would be pissed they didn't wait.

how is this fair to people who closed already?...bummer.

[lil_penny]

Damn hopefully it goes to 15k so I can take more time looking

[nuclearfm]

Eh, if it goes up and I close this year im going to be pissed...

[Das Texan]

And why only first-time homebuyers at that?


ya thats one thing that kinda pisses me off about it all.

[chreph]

How can anyone who got FREE tax payer $ be pissed that somone else might get more? Shouldn't the tax payers who got nothing be pissed :rolleyes

My wife is in the mortgage biz and said she was told they were trying to raise it slightly and make it available to EVERYONE, first time buyer or not to really get the market moving. If they do that, I will definitely be moving just to finally get to experience what it's like to take advantage of a handout :lol

[coyotes_geek]

Good for you if you can cash in on the 'free money' giveaway. In terms of an economic policy though, this is just the government desparately trying to pump a floated keg in an attempt to convince people that the easy mortgage money party isn't over.

[LnGrrrR]

The reason why it's for 'first-time' buyers only is to prevent rich people from buying 20 houses and getting an $8k credit on all of them.

The reason for the tax credit in the first place is because the housing market is still glutted.

[robino2001]

My wife is in the mortgage biz and said she was told they were trying to raise it slightly and make it available to EVERYONE, first time buyer or not to really get the market moving. If they do that, I will definitely be moving just to finally get to experience what it's like to take advantage of a handout :lol

This is true... the rumor/story is that the $8k credit is great and got people to buy their first home, but now the housing market will not go anywhere unless they get the middle class to upgrade into that "final home". I'm in a similar boat... I've been in a house for 2.5 years... plan to move in 3-5 years into a better house that will (outside of changing cities) will be a house I do not plan to leave for a long time. This is the type of movement the government will be looking to push for. Therefore, the numbers have been making the credit $15k and making it available to everyone early next year. If that happens, it'll probably work and I'll plan to bounce up into the nicer house.

[RashoFan]

This rain is killing my process. They are waiting to pour the foundation but are having to hold of due to the rain. So its going to be close. I dont want them to rush to try to make the deadline and end up fucking something up. But I do hope they extend the process by a couple of months.

Hopefully your house gets worked on quickly! Congrats on the new house! Mine is supposed to be done by mid Nov. It has been framed and the roof was in process before it started to rain. Where are you building at?

[Sportcamper]

I have talked to a couple of brokers who work with or talk to, Fannie Mae, Freddie Mac, BofA, Wells Fargo & they do not know for sure if the bill will be extended or if the dollar amount will be increased…(Realtors have no inside information whatsoever on this subject)…

Like any Government plan, one needs to read the fine print to see if the program is really beneficial to you…1st time home buyer = a person who has not owned their own home in 3 years…Currently, there are income restrictions to qualify for the program….

Using an “8k write off”, to justify the purchase of a home in So Cal, (that may decline 30k in the next 12 months), does not seem like a smart thing to do…

Using the “8k write off" to justify the purchases of a 130k home in a market like San Antonio, (which has avoided most of this volatility) seems like a prudent investment to make now…

[DannyT]

Hopefully your house gets worked on quickly! Congrats on the new house! Mine is supposed to be done by mid Nov. It has been framed and the roof was in process before it started to rain. Where are you building at?

out in Schertz, Only downside is its a KB home. But I have faith that they have gotten thier stuff together over the past few years. If Im not happy I am ok with losing earnest money and walking away. I tried to find something in the 151 area but just didnt really see anything I really really liked for the price. I was happy with the area in Schertz. So we will see, but Im ready to stop renting.

[Nbadan]

Given the current condition of the housing market, I would be surprised if this was not extended....I'm not so sure it will be increased, but if it is, I hope it is retroactive to those who qualified under the previous plan...

[DannyT]

I just hope that for some reason they dont skip december and have the bill start in January 2010. That would really piss me off. But if it was ment to be it was ment to be.

[TDMVPDPOY]

This thread needs more input

if you check australian news, they had this going for about 2yrs now...and during teh financial crises they up the credit....yeh it be easier for young ppl/families to get into the property market for their first home, but just look when prices creep up above the board cause of the credit. Look at rich familys jumping into the market using the credit to purchase for their children....

ur govt like mine trying to make every taxpayer into a homerowner, just wait when interest rates go up, these are the same ppl that will be shouting at the govt to bail them out by pestering the banks to pass on the savings and holding the interest rates...

i thought some suburbs in america have a over supply of houses on the market, why not buy them existing homes instead of building new ones...

[Nbadan]

To get the tax credit most people go through FHA which requires a minimum of 3.5% down, so that's about $6,500 on a $200k home. On top of that is any earnest money (typically about 1-2K) and closing costs, which are also about 3.5% of the loan....so new home buyers have to come up with $6500 + $1000 + $6500 = $14000....they can file for the tax credit as soon as the home closes but, unless they get creative with the financing, like having the seller cover closing costs, that's still a 6,000 investment going in for new families - the benefit? They go in with some equity in their homes....a sort of safety net - unless prices drop more than 10% in the market...

[Clandestino]

8k is 8k any way you slice.

[BacktoBasics]

i thought some suburbs in america have a over supply of houses on the market, why not buy them existing homes instead of building new ones...Because I don't want to live near people. I want to get away from neighborhoods. I want my house built in a fashion that suites my needs on property large enough that I don't have to hear every shit or fart my neighbor has.

[Kermit]

Because I don't want to live near people. I want to get away from neighborhoods. I want my house built in a fashion that suites my needs on property large enough that I don't have to hear every shit or fart my neighbor has.

Amen.

[Drachen]

To get the tax credit most people go through FHA which requires a minimum of 3.5% down, so that's about $6,500 on a $200k home. On top of that is any earnest money (typically about 1-2K) and closing costs, which are also about 3.5% of the loan....so new home buyers have to come up with $6500 + $1000 + $6500 = $14000....they can file for the tax credit as soon as the home closes but, unless they get creative with the financing, like having the seller cover closing costs, that's still a 6,000 investment going in for new families - the benefit? They go in with some equity in their homes....a sort of safety net - unless prices drop more than 10% in the market...
Earnest money counts toward the down payment. As for the rest the closing costs are far less than that. My fiance and I bought our house last year and ALL included paid out about 5.5k on a 138k house. Extrapolate this out for a 200k house and you are looking at just under 8k. Basically the government is paying your down payment and closing costs. This is probably why they settled on that amount.

[RashoFan]

out in Schertz, Only downside is its a KB home. But I have faith that they have gotten thier stuff together over the past few years. If Im not happy I am ok with losing earnest money and walking away. I tried to find something in the 151 area but just didnt really see anything I really really liked for the price. I was happy with the area in Schertz. So we will see, but Im ready to stop renting.

I am building with KB as well in Fox Grove. I am happy so far with the expierence and I hope the house is going to be as good as I am planning that it will be.

[DannyT]

Congrats to you as well Rasho, Let me know how it goes and I will do the same

PARTY AT RASHOOOOO's

[kbrury]

Ive been living in Schertz for a while now its a great place to be and its just far enough from the city but not too far. It has grown immensely over the years I believe it was the fastest growing small city in the nation last year and is one of the top communities to live in
#39 this year


http://money.cnn.com/magazines/moneymag/bplive/2009/snapshots/PL4866128.html
39. Schertz, TX
http://i2.cdn.turner.com/money/.element/img/1.0/sections/mag/moneymag/bplive/2009/snapshot/schertz_tx.jpg
WINNER
Top 100 rank: 39
Population: 29,300
Compare Schertz to Top 10 Best Places (http://apps.money.cnn.com/bestplaces_2009/compare_tool_2009.jsp?id=PL4866128)

This San Antonio suburb was named for the German immigrant who founded it over 150 years ago, and Schertzes still live here today.
City officials estimate that a third of adult residents work on the adjacent Randolph Air Force base (known for its Spanish colonial architecture); a third commute to San Antonio; and a third work in either Shertz or commute north to Austin. This town is big on community events: It hosts three large festivals every year. --N.A.

[DannyT]

I got that magazine, saying that it was one of the best retirement cities, but didnt rank to good in the education department but I am ok with Clemens and Steele. So Im excited to be out there. JUst hope KB doesnt fuck this home up

[kbrury]

Well actually I graduated from Clemens last year the education is fine if you enroll in AP or IB classes plus the new library looks like a space station compared to everything else. Im guessing you have a kid(s) right?

[DannyT]

Yup yup, But theyl be in the steele district so we will see how it goes, I have high hopes. I was just telling you what I had read in that article on its ratings.

[Wild Cobra]

The reason why it's for 'first-time' buyers only is to prevent rich people from buying 20 houses and getting an $8k credit on all of them.

The reason for the tax credit in the first place is because the housing market is still glutted.
Any rumors of it going up are going to keep the intended bump in the market fail...

[TDMVPDPOY]

that tax credit, should be means tested if you qualify for such credit...and ppl should have at least a % deposit or else we are stuck in this bs again with the banks handing out easy money to first home buyers who dont have the capacity for future repayments...

[RashoFan]

Congrats to you as well Rasho, Let me know how it goes and I will do the same

PARTY AT RASHOOOOO's

only if you have a party at your casa...
BTW, which floorplan you going with?

[DannyT]

we did the 2408 I believe. Kinda sucked cause no other sub-division in SA had it available to walk through. The closest one was Austin. But we took the chance. Went ahead and did the study and den conversion and restroom downstairs. How about you, what did you end up going with?

[RashoFan]

I went with the 1583. I am the first to build in SA with that floor plan. I drove up to austin to see the same model, the house was about 3 weeks from closing and it was very cute....I upgraded the baths, went for the separate shower and garden tube in the master.

[Das Texan]

You would have to shoot me dead a few times before I bought a cookie cutter type house from a home builder.

[RashoFan]

Meh, KB had way more options available for the floorplan I chose. I was looking at some centex homes in the area. Centex had smaller floorplans less options and were more $$$.

[DannyT]

Meh, KB had way more options available for the floorplan I chose. I was looking at some centex homes in the area. Centex had smaller floorplans less options and were more $$$.

Yeah I said the same thing about all the houses on Potranco and in that area. The song from weeds came into my house. But I have to say that I was able to seperate myself from the rest of the community that I will be in since I am the first on the block and got more optioins and the floor plan I am using also came from the Austin Area.

Rasho we also did the bath upgrades for seperate shower garden tub and did the double sinks. We also decided to turn the loft into a 4th br. I hate the way they leave those open. I want a game room not an open area. When I have my roulette/poker/craps table built we will have to come rock out with out cocks out.

[TDMVPDPOY]

Rasho we also did the bath upgrades for seperate shower garden tub and did the double sinks. We also decided to turn the loft into a 4th br. I hate the way they leave those open. I want a game room not an open area. When I have my roulette/poker/craps table built we will have to come rock out with out cocks out.

this is why i hate study rooms, open area room or even a 2nd lounge/media room when they can just put in a door closed it off and make it another bedroom....same can be said about double garages, or even rumpus area...

[stretch]

ive been hearing more that this will be renewed and raised to $15,000 in february.

any of you bastards been hearing this as well?

[CubanMustGo]

ive been hearing more that this will be renewed and raised to $15,000 in february.

any of you bastards been hearing this as well?

That's what the Realtors and everyone else in the housing industry seems to want, but there's nothing definitive.

The existing credit may instead be simply extended:

http://www.inman.com/news/2009/10/5/tax-credit-has-bipartisan-support

White House spokesman Robert Gibbs today confirmed that President Barack Obama supports an extension of the first-time homebuyer tax credit, along with prolonging jobless benefits and health care subsidies for unemployed workers.

Briefing reporters, Gibbs said the measures don't amount to a second stimulus plan.

Evidence of bipartisan support in the Senate for extending the first-time homebuyer tax credit was also on display Sunday on ABC's "This Week," with guests Sen. Charles Schumer, D-N.Y., and Sen. John Cornyn, R-Texas, finding common ground on the issue.

[...]

Many lawmakers -- particularly Republicans -- are concerned about the debt the government has taken on to boost the economy. But Cornyn said he and Schumer agree on renewing the $8,000 first-time homebuyer tax credit, which expires Nov. 30, along with extending unemployment and health care benefits for unemployed workers.

There are a dozen or so pending bills that would extend or even expand the tax credit.

Earlier this year, former real estate broker Sen. Johnny Isakson, R-Ga., introduced S 1230, which would nearly double the tax credit's ceiling to $15,000 and expand the pool of those eligible to claim it by lifting first-time homebuyer and income restrictions. When Isakson introduced a similar bill last year, the Congressional Budget Office estimated it would cost $34.2 billion.

Isakson has since endorsed a compromise bill, S 1678, that would simply extend the existing tax credit to June 1, 2010.

Isakson's argument is "that the housing inventories, or excess housing inventories, are what are dampening the recovery," Cornyn said. "And I think he's right."

Schumer said he'd support extending the credit, as it's "helped get the housing market out of the severe depression it was in. It's getting a little better, (but) has to go more."

Former real estate broker and NBC "Today" show contributor Barbara Corcoran last week advised homebuyers not to rush to beat the tax credit's expiration date, saying she "fully expects" lawmakers to extend it.

[Frenzy]

good stuff ^

[Frenzy]

looks like some one is getting a wish.

http://news.yahoo.com/s/ap/us_homebuyers_tax_credit