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I read the WSJ daily, and havent seen any talk of this. THEN AGAIN: if the higher 30 year mortage rates really stall the already hurting market, they may have to add this "Super Incentive" to get anything moving again.
30 yr Mortgages just went up to APR 5.75% over the past two weeks - - everyone in housing (and gov't) is worried that is a deal-killer and a re-fi killer.
So..... Stay tuned....It actually may get BETTER FOR BUYERS IN A FEW MONTHS TIME!!!!
Really makes me happy to hear it may get better in a few months!
Ok I need to get some things straight on this 8,000 tax credit for first time home buyers.
From what I understand, only first time home buyers can get this. So if you're married and filing jointly and only one of you is a first time home buyer, then you would need to file separately to get the credit. Am I correct on this?
Also, to get this credit, do you have to get a bridge loan or another special type of loan that would create a lean on the home/property? I just find it hard to believe that I'm going to be handed 8000 in a credit towards the new home. Being that I grew up here, I fully expect a catch. So what is the catch (other than having to close by November of this year)?
From what I understand, only first time home buyers can get this. So if you're married and filing jointly and only one of you is a first time home buyer, then you would need to file separately to get the credit. Am I correct on this?
This is from the IRS site (not copyrighted!)
quote:
Q. ....My spouse has owned a main home in the last three years, but I have not. If I buy a home on May 1, 2009, that otherwise qualifies, can I claim the first-time homebuyer credit?
A. No. Section 36(c)(1) requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. The taxpayer may not take the credit even if filed on a separate return.
unquote
Of course you should check with your tax adviser...
Quote:
Originally Posted by thebobs
Also, to get this credit, do you have to get a bridge loan or another special type of loan that would create a lean on the home/property? I just find it hard to believe that I'm going to be handed 8000 in a credit towards the new home. Being that I grew up here, I fully expect a catch. So what is the catch (other than having to close by November of this year)?
The bridge loan is a way to use the first time homebuyer tax credit as part of the down payment instead of filing either an amended return for 2008 or using it to reduce tax liability on the 2009 return. HOWEVER, I was told by a local bank today, bridge loans only apply to FHA loans.
As far as I know, the only catches are
- not a previous homeowner (last three years)
- falling within income guidelines
- closing no later than Nov. 30, 2009
- not selling the house for 36 months after closing
Last edited by Elke Mariotti; 06-16-2009 at 09:37 PM..
I figured it was too good to be true. What bothers me is that this only would apply to those people who never owned including their spouse. Maybe years ago that was more the norm, but these days I can easily find a lot of people where one spouse has owned and the other has never owned.
That bridge loan bothers me. Its another lean (lien??) on the property which I do not want at all. But definitely something to keep in mind when I check with whatever bank I go with and also check with the tax guy that I use.
Actually why bother with the red tape at all. I think I'll just go to Gilligan's Island and relax.
I read the WSJ daily, and havent seen any talk of this. THEN AGAIN: if the higher 30 year mortage rates really stall the already hurting market, they may have to add this "Super Incentive" to get anything moving again.
30 yr Mortgages just went up to APR 5.75% over the past two weeks - - everyone in housing (and gov't) is worried that is a deal-killer and a re-fi killer.
So..... Stay tuned....It actually may get BETTER FOR BUYERS IN A FEW MONTHS TIME!!!!
Bingo - there are many people who are selling or plan on selling who want buyers to think we've hit bottom and home prices will start going up 4.5% per year again now. The fact is, rates will be increasing, and the incentives to purchase (ie: $8k credit) will end (unless something new is implemented). Unemployment is still very high. Buyers will see a continued price reduction as sellers realize their choices are to sell or foreclose. Buyers have the upper hand for the next couple of years and sellers must adjust their asking prices if they want to move their house.
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