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Old 06-02-2009, 07:20 AM
 
55 posts, read 174,742 times
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Hi All,

I've been looking around and have yet to get a clear answer to this question. My wife and I are looking at buying a house this year. From my understanding, if your joint household income is under $150K, you can get the $8K tax credit if you purchase in 2009. I have a few questions and would like your help

1) If our joint income is over $150K, do we not qualify altogether? Or do we get a percentaged of the $8K.

2) I owned and sold my house 2 years ago. I believe it states that you must not have owned a home for the past 3 years to qualify. If this excludes me, is there anyway the new house can be purchased solely by my wife?. She's never owned a home before. Please explain my option for this scenario

Thanks in advance
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Old 06-02-2009, 07:30 AM
 
Location: Lake Highlands (Dallas)
2,395 posts, read 7,609,771 times
Reputation: 1033
Federal Housing Tax Credit for First-Time Home Buyers: Tax Credit at a Glance (http://www.federalhousingtaxcredit.com/2009/glance.php - broken link)

* The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
* The tax credit does not have to be repaid.
* The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
* The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
* Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

EDIT: Please note that "income" is your Modified AGI, not your taxable income (which will be lower than your MAGI)
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Old 06-02-2009, 08:03 AM
 
Location: Forney Texas
2,119 posts, read 5,489,976 times
Reputation: 1168
Quote:
Originally Posted by lh_newbie View Post
Federal Housing Tax Credit for First-Time Home Buyers: Tax Credit at a Glance (http://www.federalhousingtaxcredit.com/2009/glance.php - broken link)

* The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
* The tax credit does not have to be repaid.
* The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
* The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
* Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

EDIT: Please note that "income" is your Modified AGI, not your taxable income (which will be lower than your MAGI)

Does anyone make some sort of deal where this $8k goes towards the downpayment? You'd think with the economy the way it is they would set something up like this.
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Old 06-02-2009, 08:04 AM
 
27,528 posts, read 44,987,445 times
Reputation: 14063
your wife won't qualify because couples are judged together--so your owning a home within the three years will roll over to her

my daughter tried to do that when she bought home in FL recently using just her income to qualify and she was the only applicant--but her husband owns a condo they live in currently and that nixed the tax credit for her
and it is a TAX CREDIT--meaning that no money changes hands to the buyer at closing--so to me--you have to wait for filing your income tax to see benefit of it and then it would be prorated based on what your income/tax deductions would be as to how much you actually benefit...
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Old 06-02-2009, 08:07 AM
 
Location: Texas
447 posts, read 1,571,629 times
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Currently there is no way to use the tax credit as a down payment, however that may change in the near future.

You can always file an amended tax return after you close and get the credit much sooner than waiting to file in 2010.
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Old 06-02-2009, 08:47 AM
 
Location: Cincy
252 posts, read 860,317 times
Reputation: 104
I hope the OP is still reading, YES, it is POSSIBLE to use the credit for a downpayment
Friday, May 29, 2009 · Last updated 3:08 p.m. PT

Feds will allow tax credit for down payment, closing costs

Feds will allow tax credit for down payment, closing costs (http://www2.seattlepi.com/articles/406684.html - broken link)

although you still wont qualify because both husband and wife could not have owned a home in past 3 yrs
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Old 06-02-2009, 08:53 AM
 
27,528 posts, read 44,987,445 times
Reputation: 14063
that is not as good a deal as it sounds--first of all it seems to start the bad policy of no-downpayment all over again and with Fannie Mae being stupid...
second there is no loan that comes without some cost--so there will be charges for doing this and I guarantee that the companies that will be willing to do this "loan" are going to charge a stiff fee...the fact that it will come out of the government's rebate won't matter to the loaning company or the person buying the house who is getting the loan--after all, it is not that person's money is it--
it is coming from the government...
this is not smart and it encourages all the wrong attributes for home buying
getting people who can't afford it into a house is not good practice...and if they NEED this rebate right then to get into the house--then they should not GET INTO the house...
sorry if that sounds strident --but what is it about bad decision making that people don't seem to get???
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Old 06-02-2009, 08:56 AM
 
Location: Cincy
252 posts, read 860,317 times
Reputation: 104
Quote:
Originally Posted by loves2read View Post
that is not as good a deal as it sounds--first of all it seems to start the bad policy of no-downpayment all over again and with Fannie Mae being stupid...
second there is no loan that comes without some cost--so there will be charges for doing this and I guarantee that the companies that will be willing to do this "loan" are going to charge a stiff fee...the fact that it will come out of the government's rebate won't matter to the loaning company or the person buying the house who is getting the loan--after all, it is not that person's money is it--
it is coming from the government...
this is not smart and it encourages all the wrong attributes for home buying
getting people who can't afford it into a house is not good practice...and if they NEED this rebate right then to get into the house--then they should not GET INTO the house...
sorry if that sounds strident --but what is it about bad decision making that people don't seem to get???
I agree, actually if you go FHA, I believe you only need about 3% down payment anyway, so everyone should be able save 3% of purchase price before buying.
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Old 06-02-2009, 09:01 AM
 
Location: Austin
7,078 posts, read 16,903,265 times
Reputation: 9484
You can only use the tax credit for downpayment if you're putting more than 3.5% down. Every buyer obtaining an FHA loan must come to the table with 3.5% minimum. If they are not putting more than 3.5% down, the tax credit canNOT be used for down payment, only closing costs... but you still can't get it before closing anyway unless you obtain a "loan" for the credit to repay after you file your taxes.
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Old 06-02-2009, 09:05 AM
 
Location: Texas
5,774 posts, read 6,658,333 times
Reputation: 2856
Quote:
Originally Posted by cincylifer View Post
i agree, actually if you go fha, i believe you only need about 3% down payment anyway, so everyone should be able save 3% of purchase price before buying.
3.5%
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