Bailout - First time home buyers... (purchase, percentage, 10%, 150k house)

[grannynancy]

I guess I see what you are saying here is that the artificially ridiculous prices on homes force folks into strange situations. 75K in Souith Carolina would be a good single income but unless you are talking on the beach, you can get a basically decent home for around $150K. Mind you I am talking basic new starter home, nothing fancy.

[Bydand]

Originally Posted by HurrMark

When even a starter condo costs $250k, even someone making $75k might find it difficult to make ends meet.

Wow, glad I don't live where you do. Just bought a 2200 square foot house, walking distance to all schools and in a very nice neighborhood sitting on 1/2 an acre for less than $85k. Didn't have to do a thing to move in other than mow the grass and change the address with the post office. Fenced in backyard that has a gate in it so the kids don't even have to cross a street to get to the schools all the way to graduation. Walking distance to downtown area (4 blocks) and less than 2 miles to a world class trout river that people travel from all over the world for a chance to fish. 6 miles from Lake Michigan and it's hundreds of miles of sugar sand beaches as well, so it is a nice location and a nice place.

Not all areas of the Country are so overpriced.

[rcarrillo]

Part of the problem is that many areas have prices that are still artificially inflated. When you offer people $0 down, 1% payments for 10 years it allows more people to jump into the market and creates excess demand. People also LOVE California, Florida, Vegas and other places and continue to pay huge premiums for rent/gas/housing there while complaining about how awful it is.

Its a choice. I moved from South Florida to NC in 1999 to attend graduate school. One reason was because here in NC I could afford to live (and even bought a home) while in South Florida and other places (Irvine, CA for instance) that I thought of moving to I could not. Sure I would have the beaches, the sun, etc... but I made a choice to live somewhere I could afford to live. After school, I interviewed at a position in Boston. If I had moved there, I would barely be able to afford a decent apartment in Cambridge or Boston so I decided against it... same with Washington DC. I love both those cities, but I made a choice to live in a place where I could afford a home.

Sure some people have a compelling reason why they must live in La Jolla, San Franciso or New York City and hate that they can never afford to buy there. But for most its a choice... they could easily get a job somewhere else and afford a home (some people in NY can't even afford a car or parking with how expensive that is there) but they choose not to.

Life is about choices and tradeoffs. We can rarely have it all, and living off credit cards, 100% mortgages and car leases only works for so long.

[woodinvilleguy]

I wonder how many people will take the money and default on paying it back....

[Albuquerque101]

I have a question regarding the first time home buyer credit. I hear it phases out if you make above a certain level. Does anyone have more details on that?

[BGS99]

Originally Posted by Albuquerque101

I have a question regarding the first time home buyer credit. I hear it phases out if you make above a certain level. Does anyone have more details on that?

Individuals with adjusted gross income between $75K and $95K.
Married couples filing joint between $150K and $170K

[Albuquerque101]

Thanks, here's some rep points. Does that mean that if my husband and I make over $170k that we don't get anything or do we get a reduced amount (and what would that be?)

[Go Blue 99]

Originally Posted by Albuquerque101

Thanks, here's some rep points. Does that mean that if my husband and I make over $170k that we don't get anything or do we get a reduced amount (and what would that be?)

You won't get anything if you make over 170k.

[Go Blue 99]

Originally Posted by sneezecake

Thus, the $7500 will be used for furniture, upgrades, or just to re-fuel our operating accounts, and our savings and income plan has us have MORE than enough 2 years from now to start paying back $500/year.

Not to mention, $500 today is more valuable than $500 will be in 15 years.

The money will come in very handy in my situation, but I can see how it would be potentially risky for others.

Keep in mind you'll only get $7500 if you're buying a $750k house. Most first-time home buyers will be getting much less than that.

[ocnymonty]

Originally Posted by Go Blue 99

Keep in mind you'll only get $7500 if you're buying a $750k house. Most first-time home buyers will be getting much less than that.

That's right. It is a credit for a percentage of the purchase price. Our house was $320K and we'll receive about $3200.

I'll take it!