Quote :

"I was looking into buying a foreclosure, fixer-upper around $50k. But being a grad student, I can only work 20 hours a week; so I have no idea how eligible I am for a loan"

Unless you walk into the bank with at least 10k don't even think twice about it.
No doc loans are all but gone.

9/30/2009 12:51:27 AM

Just bought a house and moved in last week! Hello $8000

9/30/2009 9:04:55 AM

Quote :

"i'm pretty sure you don't get the full $8k on a $50k house. I don't remember the details, but I think it's something over $100k to get the full credit."

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

9/30/2009 10:08:02 AM

So, has there been any more official word/links on whether this bill will be extended/increased?

9/30/2009 10:14:46 AM

just signed a contract for a house yesterday

too bad it won't be finished until April and I can't close until then

hopefully this gets extended

10/2/2009 3:46:36 PM

Yeah, it's 10% up to a max of $8k; I wouldn't expect the whole $8k on a $50k house. But if I walked in the bank with $5k (10% up front), had proof of decent income, and have awesome credit; I wonder about my eligibility then.

10/2/2009 7:45:49 PM

^^ hopefully not, it sucks watching white people get something for nothing while I subsidize it. The constitution says only black people are entitled to taxpayer dollars... [/liberal rant]

10/2/2009 9:12:18 PM

well what about 2nd time home buyers? what about people that already have write-offs for all their taxes? will they get 8k cash in tax returns? or is this just "you get to pay 8k less in taxes"?

[Edited on October 2, 2009 at 9:18 PM. Reason : sucks if you already have owned a home before you can't get help]

10/2/2009 9:18:24 PM

you dont get anything

10/2/2009 9:53:12 PM

which is why im in here asking questions

[Edited on October 2, 2009 at 10:18 PM. Reason : trolls everywhere]

10/2/2009 10:18:07 PM

first time homebuyer for this tax credit means you haven't bought a house in the last 3 years i believe.

10/2/2009 10:30:20 PM

havent owned a house in the last 3 years

[Edited on October 3, 2009 at 12:17 AM. Reason : trolls everywhere]

10/3/2009 12:17:04 AM

Quote :

"you dont get anything"

i may have misunderstood this post. it could mean about 3 different things...

10/3/2009 12:30:11 AM

We're hoping to close by 11/13... So far everything has been a breeze. Now let's just hope the appraisal comes back at the purchase price - and we'll be good to go!

10/3/2009 7:47:27 AM

^^^sorry yeah, that's what i meant.

10/4/2009 5:34:46 PM

Extension looks likely. I'm set to close in April 2010 so this is great news for me



http://www.cnn.com/2009/POLITICS/10/28/senate.homebuyers.credit/index.html

10/28/2009 11:35:12 PM

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

It's getting extended to June 30th 2010.

11/5/2009 11:54:37 AM

Quote :

"Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500."

i assume this is the same thing i took advantage of this past year, the $7500 tax-free loan? or will this mean that i'll get additional tax money back on my 2009 taxes?

11/5/2009 12:06:55 PM

This whole thing was a bad idea for the same reason that Cash for Clunkers was a bad idea, minus the part about destroying working cars. It encourages people to take out loans to buy new houses when the need to do the opposite, in many cases. It's also taking away revenue from the federal government, when revenues are already suffering due to staggering unemployment and failing businesses. It's certainly beneficial for anyone that was going to buy a house anyway, though.

11/5/2009 12:19:57 PM

^^It means that anybody that has owned and lived in the same house for the last 5 years qualifies as "first time homebuyer" but only up to $6500 (as opposed to $8000 for an actual first time homebuyer). Also it would only apply to purchases after the date the bill is signed by Obama.

Quote :

"`(6) EXCEPTION FOR LONG-TIME RESIDENTS OF SAME PRINCIPAL RESIDENCE- In the case of an individual (and, if married, such individual's spouse) who has owned and used the same residence as such individual's principal residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence, such individual shall be treated as a first-time homebuyer for purposes of this section with respect to the purchase of such subsequent residence.'. ... `(D) SPECIAL RULE FOR LONG-TIME RESIDENTS OF SAME PRINCIPAL RESIDENCE- In the case of a taxpayer to whom a credit under subsection (a) is allowed by reason of subsection (c)(6), subparagraphs (A), (B), and (C) shall be applied by substituting `$6,500' for `$8,000' and `$3,250' for `$4,000'.'."

http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.3548.EAS:

11/5/2009 12:45:31 PM

^ wait...so i bought my house in may of 2008 and so i wouldn't qualify for a $6.5k cookie from the government, but someone who has been in their house for 5 consecutive years or more DOES?

i assume i don't understand it correctly, because the way i've outlined it, that's stupid

or does that mean that i'll get a $6.5k cookie if stay there for another 3.5 years? obviously, i want to know how this impacts ME

[Edited on November 5, 2009 at 1:09 PM. Reason : .]

11/5/2009 1:08:25 PM

^well, it's pretty stupid all-around since it's just artificially propping up the real estate market.. but yea, I think you got it right.

no, you don't get a cookie for staying in your current house 3.5 more years. No cookies for you, basically.

[Edited on November 5, 2009 at 1:11 PM. Reason : sw]

11/5/2009 1:10:30 PM

^^You haven't owned a home in the last 3 years and you buy a house = first time homebuyer

You've owned your primary residence for the last 5 years and you buy a new house = "firsts time homebuyer" that can get up to $6500

You've owned your primary residence for 5 consecutive years (bought 2003, sold 2008) and you buy a new house = "first time homebuyer" that can get up to $6500 [you owned a house less than 3 years ago so you are not a "true" first time homebuyer].

Quote :

"No cookies for you, basically."

[Edited on November 5, 2009 at 1:16 PM. Reason : ]

11/5/2009 1:15:01 PM

^ thanks for the explanation...i get that a bit better, now

does anyone truly think this is a good idea? outside of getting a fat wad of cash? i mean, i want cash, too (obviously), but this is still a stupid idea...if the $6.5/8k is what sold you on buying a home, you probably shouldn't be buying a home

[Edited on November 5, 2009 at 1:21 PM. Reason : .]

11/5/2009 1:17:57 PM

Well, I got $8000 and I still think it's a terrible idea.

11/5/2009 1:24:21 PM

Are you gonna give your $8000 back?

11/5/2009 1:27:18 PM

Why would I do that?

If I'm buying my house at the inflated market price, I'm going to take the $8000 to offset it. Especially when said $8000 is ultimately coming from my (our) pocket.

11/5/2009 1:29:49 PM

You should just stfu with your complaining if you aren't gonna give it back.

11/5/2009 1:40:33 PM

Quote :

"You should just stfu with your complaining if you aren't gonna give it back."

can i complain since i got nothing and now i'm bitter?

i'm really not bitter, per se...obviously, i'd take any money they want to throw at me since NOT taking isn't going to make a bit of difference...just a little disappointed that the government's bad decisions aren't going to be a boon for me

11/5/2009 1:42:37 PM

^^Who's complaining? I just said it was a terrible idea. The fact that I got to cash in on said terrible idea doesn't change anything.

11/5/2009 1:48:31 PM

IM PISSED!

I closed 9/22/08 and I got the $7500 interest free LOAN. It has to be payed back starting with my 2011 tax return.

I want mine to be free like the $8000 and $6500.

11/5/2009 2:14:54 PM

Quote :

".if the $6.5/8k is what sold you on buying a home, you probably shouldn't be buying a home"

regardless of your personal feelings on people's money management skills, this $8K did spur people to buy houses, which is good for the economy in a number of ways. it helps the building industry, financial services, retail, contractors etc

i guess you were against cash for clunkers too huh? let me guess, because everyone bought foreign cars anyway? Or is it REALLY because you weren't in any position to take advantage of it?


^ I feel your pain. we bit too early

11/5/2009 2:35:06 PM

just playing 's advocate here, but this credit is coming out of tax break funding for international corporations... So our economy is and will be paying for it in other ways for a long time.

11/5/2009 2:41:29 PM

Quote :

"regardless of your personal feelings on people's money management skills, this $8K did spur people to buy houses, which is good for the economy in a number of ways. it helps the building industry, financial services, retail, contractors etc"

that sounds exactly like what politicians like to say to people that don't have any education in economics

where do you think this money is coming from? trees? raindrops? you and i are paying for people to buy houses, which is asinine...it in NO WAY benefits me except in the most insubstantial of ways...give me any evidence whatsoever (evidence, mind you, not guesses) of it helping ME, and i'll consider the value of such a folly

because, really, since i'm the one paying for their homes (in the long run), something they do NOT need (you can live in a shitty apartment for less than buying a house...and they can kick you out if you can't pay for it anymore), i care very much about how it impacts me

if the tax credit was the deciding factor in purchasing a home, then the odds are that the people can't manage money worth cow farts and don't deserve the opportunity to fuck it up for the rest of us (obviously there will be exceptions to this rule, but they are few and far between, most likely)...this is not the same, however, as the money being a deciding factor in moving up the purchase date because those people likely planned ahead and knew they could afford it in the first place

my opinion means nothing, though...i'm not an economist, but neither are these dumbass politicians...if you want capitalism, stop with the handouts...if you want socialism, put the tax money toward something of value, like healthcare...unfortunately, too many people are too stupid to understand the intricacies of such situations

Quote :

"i guess you were against cash for clunkers too huh? let me guess, because everyone bought foreign cars anyway? Or is it REALLY because you weren't in any position to take advantage of it? "

i was in favor of cash for clunkers for the SOLE reason of environmental responsibility...i couldn't care less about artificially stimulating car sales, but i care (as a toxicologist in particular and a nature nut in general) about reducing emissions and fuel economy...was it much? no. for my own reasons, do i think it was worth it? yes.

it was a stupid idea in terms of money, though

[Edited on November 5, 2009 at 2:52 PM. Reason : .]

11/5/2009 2:51:25 PM

Quote :

"that sounds exactly like what politicians like to say to people that don't have any education in economics"

no dude, it's fact. this money spurs economic activity. this activity keeps companies solvent, and it keeps people employed. yeah that probably doesn't put money directly in your pocket, but surely you can think outside of your tiny "ME! ME! ME!!!!!!!" box for a second can't you? The economy is larger than the width of your wallet.

Quote :

"if you want capitalism, stop with the handouts...if you want socialism, put the tax money toward something of value, like healthcare"

this isn't about socialism. it's about sparking economic activity. government spending during a recession? SOCIALISM!!!!

Quote :

"if the tax credit was the deciding factor in purchasing a home, then the odds are that the people can't manage money worth cow farts and don't deserve the opportunity to fuck it up for the rest of us (obviously there will be exceptions to this rule, but they are few and far between, most likely))"

most likely, you are talking out of your ass, and making judgments based on irrational thought and meaningless generalizations.

Quote :

"my opinion means nothing, though...i'm not an economist, but neither are these dumbass politicians"

and you don't think these politicians have access to economists?

11/5/2009 3:13:23 PM

Quote :

"this money spurs economic activity. this activity keeps companies solvent, and it keeps people employed. yeah that probably doesn't put money directly in your pocket, but surely you can think outside of your tiny "ME! ME! ME!!!!!!!" box for a second can't you? The economy is larger than the width of your wallet."

No. The money spurs spending. Spending is economic activity, sure, but that doesn't make it a positive thing. We need savings so we can increase production and create real economic growth. We have an entire government that has confused spending with growth, and it's why things are so screwed up now.

Quote :

"this isn't about socialism. it's about sparking economic activity. government spending during a recession? SOCIALISM!!!!"

You're right, it isn't socialism - it's Keynesian economics. The Keynesian response to a recession is to increase government spending. Unfortunately, the government can't create wealth, it can only take money from its citizens and redistribute it. It can also create money and devalue the currency.

Quote :

"and you don't think these politicians have access to economists?"

They only listen to the economists that back up their pre-conceived notions. [Most] politicians are concerned primarily with getting re-elected. If an economist tells them "you've got to cut spending, and you've got to slash programs. we don't have the money to pay for any of it. you aren't going to be able to promise your voters any freebies, because we're trillions of dollars of debt," they're not going to listen. That message doesn't help the politician. The voters don't want to hear that crap. They want to hear "we can sustain this level of spending and borrowing forever! we'll always be prosperous! the government can provide whatever we want them to provide for free! USA #1!"

And that's why Keynesian economics has become mainstream in Washington. Fiscal responsibility doesn't buy votes. Government spending does.

11/5/2009 3:31:06 PM

if they could make it so i don't have to repay my $7500 from last year ever, that'd be great

[Edited on November 5, 2009 at 4:39 PM. Reason : maybe i should write a congressman or senator or something]

11/5/2009 4:37:53 PM

i bought a couple of months before the tax thing started, and it fucking pisses me off... basically anybody who buys a house, even if they already have owned one, qualifies for this tax credit, but for some reason there is a little window there (where i fall into) that automatically makes me ineligible for this.

yet my taxes are paying for it.

11/5/2009 4:50:12 PM

Quote :

"if they could make it so i don't have to repay my $7500 from last year ever, that'd be great"

Yeah, I mean, if they're into giving away all this money, I wouldn't mind that.

11/6/2009 9:07:42 AM

great response d35, dead on.

If only the government would spend a little more we'd all be rich!!!

The stupid government spent $24,000 per car on cash for clunkers. That's asinine. They've already lost $20 billion on their "investment" in the automakers just because they are scared of losing manufacturing voters.

Keynesian has proven to be bullshit, and its just gross that anyone would still believe in it.


And yeah it sucks if you've already bought a home but this is about politicians trying to prop up the housing bubble a little longer to keep their bankers wealthy. You've already blown your load and bought a home. Of course they aren't going to waste any money on you they need new buyers. It is bullshit that they are giving all these handouts and I'm sure its a kick in the teeth to those of you who overpaid so dearly for your homes right at the peak. Look at the bright side at least you bought in NC and not a manic bubble like Vegas, Miami, etc

11/6/2009 5:46:06 PM

Quote :

"I'm sure its a kick in the teeth to those of you who overpaid so dearly for your homes right at the peak."

hah, hardly...i got a great deal on my house and i have total and complete faith that when i sell in a couple of years i'll make enough money for a healthy down payment on the next one

the peak of the housing market was years ago...the people in this thread bought comparatively recently (myself included), when housing prices were actually comparatively low

but if i had about a house for $250, i'd STILL feel the same way...it's not the money itself because i'm not some dumbass that can't afford his home...rather, it's the principle of the thing (and, i admit, a bit of greed on my part)

*shrug*

11/6/2009 7:24:04 PM

I'm thinking about taking advantage of this deal within the next few months. Can I buy a house, then rent it out, and still get the $8000 tax credit?

11/10/2009 10:29:06 PM

[NO]

11/10/2009 10:34:15 PM

bttt

11/30/2009 7:40:59 PM

For the folk from the other thread: I'm pretty sure the interest was for other things. He's not here to ask or I would. But it's very unlikely that it was for the $8k.

Not sure how to get it faster, he just submitted an amendment with H&R Block and all the info...I think? Oh also, he submitted around Oct 15, received Nov 30.

11/30/2009 8:00:38 PM

So it looks like it's better to use a tax preparer as opposed to going at it alone. I'll have to file for the first time after buying a house. How different is it?

12/1/2009 1:06:06 AM

^

Honestly, you don't really need help from an accountant for this specific tax credit. The form is like 2 pages. If you've ever done your own taxes before it should take you maybe 30 minutes. The only thing I could add from my experience is to go ahead and include a copy of the closing statement, even though it is not specifically requested. From what I've heard it might expedite the process, depending on your situation.

Do you mean you are filing an income tax return for the first time ever or that you have filed in the past but now you own a home for the first time? Owning a home doesn't drastically change how one goes about filing.

12/1/2009 8:03:47 AM

I submited my tax credit in mid sept. and got the 8k half way through Nov.

12/1/2009 10:24:43 AM

I WANT MY MONEY

Also, I've heard reports of it going to the wrong address. How would that work? You put the new address on the form...?

12/1/2009 11:00:17 AM

^^^ Yeah, I've filed on my own before...but never filed while being a homeowner.

Thanks! That helps.

12/1/2009 11:24:16 PM