I think I'll take my $7500 and buy another jet ski and/or motorcycle.

7/26/2008 1:38:23 AM

^

jk I am not eligible, but my other half is, and she REALLY wants a boat

7/26/2008 9:57:28 AM

hmmm

i wonder if we could potentially qualify since this is my wife's first house, but my second house.

7/26/2008 10:18:49 AM

Do you have to pay back the loan in full if you sell the house before the 15 years is up? I bought a house in June so this could be a good thing for me. Anyone got anymore info?

7/28/2008 11:49:58 AM

of course. The "credit" (and that term should be used very loosely) eligibility is tied to purchasing your first home. Payback of said credit over the 15 year period is not tied to the house beyond that.

The group who wins here is the Tax Preparer group. These rules net very little that's meaningful to the average consumer and create a tax reporting nightmare.

7/28/2008 12:08:40 PM

Cool.

Missed it by 10 days.

[Edited on July 28, 2008 at 12:13 PM. Reason : e]

7/28/2008 12:12:52 PM

nm

7/30/2008 11:10:56 PM

anyone interested in investment condos? got one for sale near NCSU that im trying to move.


also, interested in foreclosure, bank owned stuff and some houses for sale that may need some renovations

lemme know if anyone has experience

8/10/2008 9:30:00 PM

^sent you a pm

8/10/2008 9:45:19 PM

Thanks for letting us know.

8/10/2008 9:47:33 PM

any time. it's something i've posted in this thread way back, but randy collins (http://www.randycollinsrealestate.com) is a good guy to go to for foreclosures.

8/10/2008 9:50:20 PM

8/13/2008 3:11:23 PM

After months of appealing I finally got the county to lower the tax value of my home by $20,000

8/18/2008 10:19:17 AM

^gg

8/18/2008 12:10:11 PM

i'm sorry i know this is somewhere in the thread but i just looked through 10 pages and i don't have it i me to read the other 23. i'm looking for more info on first time home buyers programs. i've done some research on my own and i'm mainly interested in the fha loans. i've gone to the hud website but all their links to lenders and loan counselors all have outdated contact #s. i'm looking at places under 100k. my credit score is fair sitting at 630 and my gross income is a little over 30k. i also have an account with coastal credit union. would i contact them and apply for an fha loan or how does that process work?

8/19/2008 2:14:08 PM

can you get a membership with NCSECU? Family or roomate have an account with them? they have an *excellent* first time home buyers program

8/19/2008 2:23:24 PM

contact your bank


they'll answer all your fha questions


My girlfriend and i just bought a house with 0% down adjustable

we plan to stay in it ~5years


if you plan to stay in it longer, go fixed.


house was 88k

income is 40k

my credit score is more bangin though.

8/19/2008 2:24:32 PM

FAQ's on First Time Buyer Tax Credit.

8/23/2008 10:48:04 AM

8. Does the credit amount differ based on tax filing status?

No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files its taxes as “married filing separately” (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

9. Are there any circumstances under which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?

In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

10. I heard that the tax credit is refundable. What does that mean?

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

11. What is the difference between a tax credit and a tax deduction?

A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15% tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer’s tax liability would be reduced by $1,125 (15% of $7,500), or lowered from $7,500 to $6,375.

12. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?

No. The tax credit cannot be combined with the MRB home buyer program.

13. I live in the District of Columbia. Can I claim both the D.C. first-time home buyer credit and this new credit?

No. You can claim only one.

14. I am not a U.S. citizen. Can I claim the tax credit?

Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519 (http://www.irs.gov/pub/irs-pdf/p519.pdf).

15. Does the credit have to be paid back to the government? If so, what are the payback provisions?

Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

16. Why must the money be repaid?

The intent of Congress was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices and will increase home sales. The repayment requirement reduces the impact on the U.S. Treasury and assumes that home buyers will benefit from stabilized and, eventually, rising future housing prices.

17. Because the money must be repaid, isn’t the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?

Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers more than $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

18. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?

Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on Dec. 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

19. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

The credit is not available for single taxpayers whose AGI is greater than $95,000 and married couples with an AGI exceeding $170,000.

PM me with any questions and I will find you answers.

8/23/2008 10:48:25 AM

w00t

this kind of sums it up:

Quote :

"17. Because the money must be repaid, isn’t the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?"

$7,500 - 0% loan for 15 years, payback doesn't start til 2010.

@10.0% interest for 15 years, that's like a free $15,443.15 (after $7,500 payback [-$500/year])

8/25/2008 5:23:31 PM

If i made 10% on invested money for 15 years, the 7500$ would be a drop in a very very large bucket.

8/25/2008 6:26:57 PM

So who is considering buying right now???

8/25/2008 6:47:30 PM

Friggen everybody, it just seems like everyone has a house to sell first

8/25/2008 6:55:33 PM

Anyone looking to buy who does not already own???

The first time tax credit is a pretty sweet deal.

8/26/2008 3:20:57 PM

So, have you guys noticed any areas around Raleigh where homes have actually dropped any noticeable amount or any areas where sales have become so poor that they really need to drop them?

8/26/2008 3:41:20 PM

All of our houses in Garner we have had to reduce like a mofo.
But those houses aren't exactly for a first-time buyer in most cases. $300k+

8/26/2008 5:39:52 PM

Just sent in an application for pre-approval to the SECU for their FirstHome Mortgage deal.

We'll see how it goes. Just have to get grandma to agree to sell the house cheap so I can use some of the loan or renovations.

Please to be nice.

9/10/2008 4:08:42 PM

good luck!

(not sarcasm)

9/10/2008 4:51:57 PM

good luck!

(sarcasm)

9/10/2008 5:20:07 PM

^^ thx

^ k?

9/10/2008 5:54:13 PM

Quote :

"RALEIGH - A Wake County Superior Court judge has halted a real-estate scheme that misled people into buying rental properties in the Triangle and Fayetteville. Dozens of investors were left with loans they cannot afford and rental properties worth far less than what they paid, Attorney General Roy Cooper announced in a statement released this morning. Under the court order signed by Judge Paul Gessner, defendant Maurice Jenkins and the limited liability corporations he manages -- Lessane Properties and Fayetteville's Property Center -- are prohibited from continuing "unfair and deceptive business practices" in the real-estate venture. The case against two other defendants, Arkansas resident Holly Stevens and The Eddie Peyton Group LLC that she managed with Jenkins, are pending. The Attorney General's Office said it believes they no longer operate within the state. According to the attorney general's statement, Jenkins and the other defendants told potential investors the defendants could help them make a profit by buying houses out of foreclosure and renting them out without having to put any money down. Jenkins funded the scheme by misrepresenting the values of the properties he sold to those consumers, Cooper said in the statement, and by causing them to take out mortgages and lines of credit for more than the properties are worth. The defendants then promised to manage the rental properties and cover the monthly mortgage payments, taxes and insurance on the homes, according to Cooper's complaint, while telling investors they would receive $500 a month in profit per home. But the defendants did not charge enough rent to cover all those promised payments, the Attorney General's Office said. In some cases, according to Cooper's release, the homes were never rented or were too damaged to be inhabited. Citing public records in Cumberland, Durham, Harnett, Robeson, Sampson and Wake counties, the Attorney General's Office said Jenkins and the other defendants sold more than 120 homes since 2004. "

http://www.newsobserver.com/front/story/1213657.html

9/10/2008 9:40:49 PM

I bought a house today :-)

9/10/2008 9:44:22 PM

who would i call if i need a french drain put in? if you can't recommend a particular company, why type of company should i look into?

9/10/2008 9:55:31 PM

any type of landscaping or septic tank company worth their salt should be able to do it. I work for a home builder and I know that both our landscaper and septic installer have done these.

9/11/2008 12:20:01 AM

^

typically not an usual request, so most should be able to handle this sort of thing.

9/11/2008 8:45:15 AM

....pulls out even more hair

Quote :

" Home sales fall 39% in Triangle Triangle market staggered over year Jack Hagel, Staff Writer Comment on this story The plight of Triangle home sellers turned gloomier in August. Sales of existing homes in Durham, Orange, Johnston and Wake counties fell 39 percent from the same month a year earlier -- the biggest year-over-year decline since the national housing bust first nicked this region a year ago, data from the Triangle Multiple Listing Service show. Meanwhile, fewer buyers roamed the market as the number of homes listed climbed to a four-year high for the month -- even as sellers budged on prices more than ever in the past six years. "The sellers aren't getting what they want," said Ed Willer, a York Simpson Underwood broker in Raleigh. "And the buyers -- well, the lenders are beating them up. So it's tough on both sides." The Triangle is coming off three frenzied years of record home sales and surging prices. But the market has come to a standstill, compared with recent years, as lenders tighten standards following years of easy money. "If you have good credit, you can get approval in five minutes," said Gordon Miller, founder of DNJ Mortgage in Raleigh. Those who don't, however, are facing higher borrowing costs and are being asked to pay more up front. And many who can qualify are on the fence, waiting to see whether sellers will budge further. The good news for owners is that prices held steady in August. Average prices were essentially flat at $248,079, as was the median price of $197,000. "A lot of people are getting reasonable prices for their houses," Willer said. "I don't see anybody getting killed." Also, a recent dip in mortgage rates may encourage more buyers to pull the trigger. Through Wednesday 30-year fixed mortgage rates in North Carolina have averaged 5.95 percent -- the lowest since April, according to Bankrate.com data. But sellers may have to become a little more flexible in the months ahead. The number of homes on the market swelled 8 percent to 14,041 in August -- the most in any August since 2004. At the same time, showings dropped 18 percent from a year ago. And pending sales sank 29 percent to a five-year low of 1,702. Willer, who is listing seven homes, hasn't had a showing in a week. Two years ago, he estimates, he would have had at least seven showings. As traffic wanes, sellers are starting to price homes more reasonably -- abandoning the ambitious price tags of two years ago. For the first time in at least six years, the prices of more than half of the homes on the market have been reduced at least once. At least 52 percent of the 14,041 homes on the market are price-drop listings, up from 41 percent a year ago. More cuts will be needed to work through the glut. And supply will have to be pinched. Already, that's happening. The number of residential building permits issued in Wake County, the region's biggest, was down 43 percent through June, county records show. "That's one of the things we have to see before we hit the bottom," said Stacey Anfindsen of Cary-based Birch Appraisal Group. Anfindsen, who analyzes listing data for Triangle real estate agents, thinks recovery will come only after there are three consecutive months of both increased showings and pending sales. Until then, sellers face a sobering reality: "You have more inventory than you've had in a long time," he said. "And you've got fewer buyers than you've had in the past four years." "

9/19/2008 9:41:00 AM

I think property values are finished adjusting in pretty much every market. The problem now is FINANCING. No one can get home loans. The government has done very little to make financing available again, especially to first time buyers.

They can throw all the tax credits they want at this problem but it is not going to go away until some lenders get back in a position to loan money. Everything that happened this week further compounded the problem.

9/19/2008 9:47:20 AM

Lucked out. Selling mine for an 11k profit, been in it 2 years. Only on the market for 60 days. I'm getting out while I can.

9/19/2008 9:50:12 AM

I know plenty of people who have gotten home loans.

9/19/2008 9:50:22 AM

FHA backed 3% down loans are available to first time home buyers unless they are trying to buy some sort of pimped out house. Couple that with the $7,500 tax credit for first time home buyers and you have to have some shitty ass credit and no money to not qualify for that (in which case, you shouldn't be buying anyways).

If you have good/decent credit and some money down, you shouldn't have any problem getting financed.

You are right that lenders aren't throwing out a bunch of 100-110% loans out to undeserving buyers though. That's what the correction is about.

[Edited on September 19, 2008 at 9:53 AM. Reason : d]

9/19/2008 9:50:52 AM

Quote :

"Lucked out. Selling mine for an 11k profit, been in it 2 years. Only on the market for 60 days. I'm getting out while I can. "

Is that before or after you pay 5% of sale price to the agents?

9/19/2008 11:59:58 AM

^^where does it tell you that you need to be broke/poor credit for the $7500 tax credit?

here's the facts:

Quote :

" The “first-time home buyer credit” is a temporary refundable, repayable tax credit equal to 10% of the purchase price of a home, up to $7,500 for singles and married couples filing jointly. (Singles who buy a house together get only $3,750 each, as do married couples filing their tax returns separately.) […] But the way the credit works, it’s actually more like an interest-free loan. Two years after you claim this credit, you have to start paying it back. The payback comes over 15 years in 15 equal installments–meaning you owe an extra $500 on your tax return each year. Sell your house, and you have to pay the rest back that year from your profits. (No profits, no pay back. Also, if you die, your heirs are off the hook.) The allowed credit starts being reduced once a single has $75,000 of modified adjusted gross income, or once a couple has $150,000 of income. The credit goes away entirely at $95,000 for singles and $170,000 for couples."

[Edited on September 19, 2008 at 12:16 PM. Reason : .]

9/19/2008 12:13:46 PM

Quote :

"Just sent in an application for pre-approval to the SECU for their FirstHome Mortgage deal."

w00t! Got approval yesterday. Just have to talk to with grandma now.

9/19/2008 1:18:14 PM

Quote :

"where does it tell you that you need to be broke/poor credit for the $7500 tax credit?"

I know the facts dude, did I say you had to be broke to get the tax credit?

I just said you had to be a first time home buyer--which you do.

I did say that you had to be broke/poor credit to not be able to get financed in this market, which is true.

9/22/2008 10:47:53 AM

Wake County Market Dynamics

August 2008
http://www.trianglemls.com/tmls-stats-market-dynamics-wake.pdf

9/26/2008 6:13:15 PM

so the foreclosure Realtor i was directed to never answered and seems to have dropped off teh face of the earth

anyone got any more?

9/30/2008 7:30:44 PM

so i found out this week my job guarantees against monetary loss if you have to sell your house and move, for closing costs and if your house devalues during the time you have it.

this is awesome.

9/30/2008 7:54:43 PM

congratulations you've been promoted to something in somwhere else, usa!

oh boy, according to HR policy you have to buy my house that's worth $100,000 less than i paid

nevermind, we'll just hire somebody local...back to your cube

9/30/2008 7:59:43 PM

ahahaha

PROLLY

9/30/2008 8:18:51 PM

In our neighborhood, we have a house that sold in 5 days ...

Its all about pricing people ... If you price it right in morrisville/north cary, people will still buy.

If you are like my other greedy neighbor and want 5% above the recent wake valuation for your home, which you bought 2 years ago for 80% of what you are asking for it, and you are FSBO ... then you deserve to not sell your home.

Look at that pdf linked above ... Homes sold, averaged 79 days on the market... homes for sale are averaging 108 days on the market ...

10/3/2008 9:09:43 AM