Help for First Time Home Buyers (New York, York: real estate, 2009, credit)

[TomMoser]

The housing bill, which was signed into law today, contains an important stimulus provision: a $7500 tax credit for first time home buyers. To qualify, you must close on the home between April 9, 2008 and June 30,2009. It is a "refundable credit" which means that if you pay less then $7500 in federal income tax the government will write you a check for the difference.

The tax credit essentially serves as an interest-free loan to be repaid over 15 years. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. If the home owner sold the home, then the remaining credit would be due from the profit of the home sale.

There are some income limitations. Your adjusted gross income must be below $75,000 for single individuals and below $150,000 for couples.

[Kbinspections]

This might get a few people off the fence. I think it will help other areas much more than LI.

[procfreq]

It's frustrating to me that all of these incentives are for first-time buyers.

We'll be doing the reverse of everyone else on the planet and moving from the Triangle, NC, to LI. We're not first-time buyers, since we own here, but we might as well be, given the price differential and all. My house here cost less than $160K, so it's not like we'll be walking away with a huge profit. Do you know of any programs for first-time NEW YORK buyers, or will the fact that I own a home here always prevent me from getting in on one of these programs?

[TomMoser]

I am sorry. I don't know of any programs that assist buyers who are home owners in other states.

[MR77]

It is interesting that they are cutting the sellers down payment assistance off the FHA program. I did not need it, but ended up using it since it was offered to me. Now I can use that down payment money to install new floors and carpet.

[Elke Mariotti]

There is still the Nehemiah program, $1,000 down... if you qualify

Originally Posted by MR77

It is interesting that they are cutting the sellers down payment assistance off the FHA program. I did not need it, but ended up using it since it was offered to me. Now I can use that down payment money to install new floors and carpet.

[logan2k]

I don't know about the other 'first timers' out there, but this doesn't give me any additional incentive to buy a house right now. The issue preventing me from buying right now are are the ridiculously overpriced homes! This interest only loan offer isn't going to change that.

If they want people to buy houses, then sellers should consider pricing their houses more reasonably. That, IMO, more than anything else, will help the market recover.

[Rachael84]

But prices have gone so far down compared to where they were 2 years ago. My fiance and I are seriously looking into buying now for that reason.

[AndreaII]

Originally Posted by logan2k

If they want people to buy houses, then sellers should consider pricing their houses more reasonably. That, IMO, more than anything else, will help the market recover.

Depends on what you consider "pricing their houses more reasonably."

If a homeowner is selling their house they've owned for 20 years, and over that 20 years have done over the kitchen, bathrooms, windows, doors, floors, etc., what you have to consider is what it cost them to do all that work. Most people aren't do-it-yourselfers, and so the work is hired out and the labor costs on LI are astronomical. Materials are expensive too - even the so-called cheap versions.

And so, you can't expect sellers to just give away all of their investment(s) in their house by setting the price so low that they'll be losing money.

If a buyer wants to find a "reasonably" priced house, they should check out the handyman specials and be prepared to invest their own $ and/or sweat equity in that. Or another solution would be to move to somewhere like central PA where you can pick up a house in great shape for about $200K. That would solve the pricing dilemma as well.

Bottom line is people who bought their houses 20 years ago for $200K will definitely not want to sell same house for $250K, which I assume would be a "reasonable" price to you, especially if they've poured about $150K into it. That $200K from 20 years ago is worth a lot more now when you take inflation into consideration.

Over the years on LI prices have always been high. It's no different now. It was tough buying a house 25 years ago. It's just as bad now - no better and no worse.

[bonniegail]

I would appreciate if sellers could advise what percentage they are paying their real estate brokers in the Long Island Area (Suffolk) and also the length of time of their contract (6 mos.?)

Thanks!