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Old 06-22-2009, 07:22 PM
 
Location: NC
648 posts, read 923,400 times
Reputation: 376

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I just came to know that you can use the first time home buyer federal credit for your downpayment..

Federal Housing Tax Credit for First-Time Home Buyers: Frequently Asked Questions (http://www.federalhousingtaxcredit.com/2009/faq.php#3 - broken link)
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Old 06-22-2009, 07:32 PM
 
Location: Five Points
1,190 posts, read 3,564,053 times
Reputation: 988
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Quote:
Originally Posted by nc99 View Post
I just came to know that you can use the first time home buyer federal credit for your downpayment..

Federal Housing Tax Credit for First-Time Home Buyers: Frequently Asked Questions (http://www.federalhousingtaxcredit.com/2009/faq.php#3 - broken link)
Nothing the guvmunt does anymore surprises me. What a dumb idea that is a recipe for disaster. The ONLY way you should be able to use this money for a downpayment is if you have match this with 8k of your own savings.
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Old 06-23-2009, 06:53 AM
 
Location: NC
648 posts, read 923,400 times
Reputation: 376
Default its your opinion!

dump idea ? its your opinion...why wait for 1 year to get the credit ? if you get it now for downpayment and use your savings for emergency ?

Also, someone may be short of 8k for downpayment, they may choose to use this.

Just don't think cause you thought it is a dumb idea, you can move the post away!
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Old 06-23-2009, 07:32 AM
 
Location: Sioux Falls, SD area
2,955 posts, read 4,371,041 times
Reputation: 4888
I agree with uncletupelo. People buying houses with no money down, and sometimes no job or income is what was the start of the mess we have now. Remember the ninja loans. No Income No Job. FannieMae and FreddieMac. How soon we forget.

With an FHA loan needing only a 3 1/2 percent downpayment, this should be the minimum to get in a home in order to be assured that this person has the ability to meet future obligations. If you are able to qualify without the $ 8,000, then you should be able to stay in your home and make your payments and pay bills later when the credit does come. With amending your last years return, you'll see this money within 1 to 2 months anyway.

We can't have a rush of people buying homes that any rational person knows can't afford them. I DO think this program is a good program and will help the economy and help people get into homes. The key is to help the people who will actually have a chance at KEEPING their homes without the crushing burden of unlimited foreclosures.
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Old 06-23-2009, 09:43 AM
 
Location: Missouri
1,554 posts, read 4,066,406 times
Reputation: 739
I don't want to start a war.... You get this as tax credit at the end of the year. So what is difference get the money now toward your home or at the end of the year??? Hummmm
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Old 06-23-2009, 10:26 AM
 
Location: Sioux Falls, SD area
2,955 posts, read 4,371,041 times
Reputation: 4888
Quote:
Originally Posted by kareybear View Post
I don't want to start a war.... You get this as tax credit at the end of the year. So what is difference get the money now toward your home or at the end of the year??? Hummmm
BIG difference. If you don't have the financial wherewithall to qualify under the existing guidelines for a starter home, you're odds of falling into trouble with your mortgage with only the slightest blurp to your paycheck to paycheck money stream are enormous.

A slight cut in work hours, job loss, car repairs, house repairs, even a minor medical emergency will all put this new homeowner behind the eight ball.

You're also going to have a lot more people trying to buy more house than their paychecks can handle. This is what was happening before. Today's young people are so spoiled they want a mcmansion along with 2 new cars in the garage right at the start. Don't forget the new furniture made possible by the free $ 8,000 upfront. Sometimes you have to protect people from their starry-eyed selves.

This country along with our banking system better start showing a little fiscal restraint and learn from past mistakes.
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Old 06-23-2009, 11:36 PM
 
220 posts, read 953,835 times
Reputation: 170
I don't see why it is stupid to buy a house with no down payment? All that matters is how much you are borrowing, it is stupid to borrow more than you can afford. There is no difference from borrowing $180k on a $180k house or borrowing $180k for a $200k house with $20k down. Either way you are borrowing $180k.
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Old 06-24-2009, 11:51 AM
 
Location: Long Island, NY
302 posts, read 847,322 times
Reputation: 91
I just asked my bank today about using this but she said even though it was approved, most banks have not set up an avenue to do this ie. short term loan at closing to be paid back nwhen you get the 8k. Does this sound off? It's approved but does not apply yet??
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Old 06-24-2009, 12:15 PM
 
Location: NJ
22,670 posts, read 28,551,950 times
Reputation: 14611
Quote:
Originally Posted by kareybear View Post
I don't want to start a war.... You get this as tax credit at the end of the year. So what is difference get the money now toward your home or at the end of the year??? Hummmm
its such a dumb idea. its that kind of stuff that got us in this mess in the first place. sure, on an indidivual basis some people will be fine. however, as a group, people who would use that 8k as the downpayment are going to default at a higher rate than those who wouldnt. thats all that matters. % of overall numbers, not that person that says "i can afford the mortgage so what does it matter?" sorry, you get denied by me. save for the downpayment and demonstrate some financial discipline.
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Old 06-24-2009, 01:16 PM
 
Location: NJ
22,670 posts, read 28,551,950 times
Reputation: 14611
honestly, the tax credit alone is pure evil. why should home prices and sales be artificially inflated because of money being taken from taxpayers and given to people who cant afford homes?

you know why this 8k tax credit exists? lobbyists for homebuilders/realtors/etc lined pockets and it was an easy enough sell so it went through. so thank government corruption for Moderator cut: language us over once again.

Last edited by Green Irish Eyes; 06-24-2009 at 02:10 PM.. Reason: Language
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