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Old 09-02-2008, 11:37 PM
 
Location: Cary, NC
1,036 posts, read 3,627,489 times
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Not only is it only for first time buyers, it also decreases with higher income. I can't remember the exact limits.... but after ~$75,000 it starts to decrease.

Best option for this is to speak to a CPA or tax specialist.
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Old 10-29-2008, 11:58 AM
 
Location: Arizona
824 posts, read 2,019,157 times
Reputation: 603
The best option would be to not borrow $7,500 from the IRS.
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Old 10-29-2008, 12:06 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,618,792 times
Reputation: 8078
Quote:
Originally Posted by scgraham View Post
Are lenders considering this inducement to be a concession? For instance, if a loan allows for a 3% IPC, would the $7,500 be counted? If not, why not?
Because:

1). It can't be paid at the table.
2). The buyers tax liability may not even be $7500
3). No, this is not considered a concession because the IRS is not a party to the transaction.
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Old 10-29-2008, 12:18 PM
 
4,542 posts, read 11,544,610 times
Reputation: 3063
Quote:
Originally Posted by azjack View Post
The best option would be to not borrow $7,500 from the IRS.
And why would that be?? The money is interest free. You could stick the whole $7,500 in CDs and earn on it.
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Old 10-29-2008, 12:53 PM
 
6 posts, read 10,587 times
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This tax credit also isn't given to every first time home buyer, as we found out. If you went through any sort of program that receives funding from tax free mortgage revenue bonds, you don't get a dime of that $7,500. And in places like Ohio where the economy is crap and there are so many low to moderate income families that are using these programs, they will see nothing.

We found this out after we went through the Ohio Housing Finance Agency's first time home buyer program. Our lender told us this was a great program that would get us a nice low interest rate and that we would still qualify for the tax credit. Well even though we paid our 3% down on our FHA loan and 3% of closing costs out of pocket, the government won't be sending us any money.
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Old 10-29-2008, 01:23 PM
 
Location: Sneads Ferry NC/Randolph NJ/Cape Coral FL
12,927 posts, read 24,052,828 times
Reputation: 10744
Quote:
Originally Posted by fsttimebuyer View Post
This tax credit also isn't given to every first time home buyer, as we found out. If you went through any sort of program that receives funding from tax free mortgage revenue bonds, you don't get a dime of that $7,500. And in places like Ohio where the economy is crap and there are so many low to moderate income families that are using these programs, they will see nothing.

We found this out after we went through the Ohio Housing Finance Agency's first time home buyer program. Our lender told us this was a great program that would get us a nice low interest rate and that we would still qualify for the tax credit. Well even though we paid our 3% down on our FHA loan and 3% of closing costs out of pocket, the government won't be sending us any money.

So are you saying if your loan was FHA you don't qualify for this credit/loan??
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Old 10-29-2008, 01:47 PM
 
Location: West Michigan
12,084 posts, read 33,134,961 times
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Quote:
Originally Posted by njkate View Post
So are you saying if your loan was FHA you don't qualify for this credit/loan??
According to my Mortgage broker we qualify and went FHA for our house in June.
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Old 10-29-2008, 01:51 PM
 
Location: Sneads Ferry NC/Randolph NJ/Cape Coral FL
12,927 posts, read 24,052,828 times
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Quote:
Originally Posted by Bydand View Post
According to my Mortgage broker we qualify and went FHA for our house in June.
Oh ok, thanks
My son & DIL closed on June 30th and I had told them about this
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Old 10-29-2008, 01:55 PM
 
6 posts, read 10,587 times
Reputation: 10
Quote:
Originally Posted by njkate View Post
So are you saying if your loan was FHA you don't qualify for this credit/loan??
Only if you go through a program that is funded by these tax free mortgage revenue bonds.

The Ohio Housing Finance Agency's First Time Home Buyer program is one of these.

If you are obtaining a FHA loan through conventional means you will get the credit.
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Old 10-29-2008, 09:26 PM
 
Location: Charlotte
52 posts, read 116,624 times
Reputation: 23
It is true, if you use the bond, you do not get the tax credit. With that being said, the benefits of the Bond loan many times outweigh the loss of the tax credit. For instance, if you can afford a monthly mortgage payment, but do not have a down payment.
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