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Temporary credit for home buyers: The bill increases the size of an existing temporary and refundable first-time home buyer credit to $8,000, up from $7,500. It also removes the requirement under current law that the credit be paid back if the buyer stays in the home for at least three years. And it would extend the credit's expiration date to Dec. 1, 2009, from July 1. Those eligible for this credit must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009.
The full credit is available to those making $75,000 or less ($150,000 for joint filers). Estimated cost: $6.6 billion.
Opinions?
I'm really glad they brought it down from $15,000. That would have been way toooo much and a complete waste of money. But given that its now $8000 refundable tax credit that doesn't have to be repaid back. I think its a great mix and will pull some people back into the market. This won't solve all the problem, but its a start.
Some of my clients where waiting to a buy a home because of the insecurity in the market not their job. They have stable jobs but where waiting for a sign on the right time to buy. Now that the $8000 doesn't have to be paid back, they are excited. Just like car buyers, most ready and able first time home buyers are/where waiting for the right time.
Anyone making the jump because of this? Are you even aware of it?
I was under the impression that it would be 15K to ALL homebuyers? That would make a buttload more sense, IMHO. First time buyers!? Wouldn't we just get in the same mess that first-time buyers got us into in the first place?
I hope this doesn't end up in $8K increase in sale value of the home
This is what some critics seem to say.
I can see why they say that. If more people get into the market, there could potentially be more offers on a home or faster selling homes which can cause prices to rise slightly. But in the majority of US cities, this could at best, stabilize home prices and stop them from dropping further. Hopefully signaling a bottoming of home prices. This is the best I could see it doing.
I was under the impression that it would be 15K to ALL homebuyers? That would make a buttload more sense, IMHO. First time buyers!? Wouldn't we just get in the same mess that first-time buyers got us into in the first place?
They scrapped the 15k credit in exchange for 8k.
There are plenty of first time home buyers in their 20s and 30's who have stable jobs and want to buy a home. As long as loan officers and banks continue strict underwriting, there shouldn't be a problem. Unless of course, they lose their job. The problem I see a lot, is that buyers are scared to buy because of all the bad news. Rightfully so, but some are just waiting and waiting, and it's hurting the market and not allowing the economical cycle of real estate to continue(buying and selling.)
We got into this problem because of lax lending, ARM loans, overbuilding, and careless buyers falling for them. Lax lending is no more. ARM loans are pretty much dead or not pushed. Overbuilding has stopped, but we now have excess inventory. And careless buyers are either scared buyers or out of the market.
As of the last bill yes, but I haven't found the newest bills details yet.
I would continue to say yes. If the rules are the same, your home must be built and certified as livable before Dec 1, 2009. All the building must be complete and you must close on your new loan before dec 1.
I think someone lobbied to get this into the bill so builders can make more money. I don't think this helps the consumer at all. I hope I am wrong, but this seems to be very political.
Quote:
Originally Posted by Bayou City Homes
I can see why they say that. If more people get into the market, there could potentially be more offers on a home or faster selling homes which can cause prices to rise slightly. But in the majority of US cities, this could at best, stabilize home prices and stop them from dropping further. Hopefully signaling a bottoming of home prices. This is the best I could see it doing.
This hurts the non-first-timers who need to sell their current home and downsize. How about the homeowner who takes a $50,000 loss on a home due to relocation and plans to buy in a new location?
Quote:
Originally Posted by Bayou City Homes
I can see why they say that. If more people get into the market, there could potentially be more offers on a home or faster selling homes which can cause prices to rise slightly. But in the majority of US cities, this could at best, stabilize home prices and stop them from dropping further. Hopefully signaling a bottoming of home prices. This is the best I could see it doing.
I was under the impression that it would be 15K to ALL homebuyers? That would make a buttload more sense, IMHO. First time buyers!? Wouldn't we just get in the same mess that first-time buyers got us into in the first place?
There are plenty of "first time" homebuyers out there who had nothing to do with the mess we are in.
First time home buyers are anyone who hasn't owned a home in 3 years. As we have just returned from an extended overseas stay, we will qualify for this. We are by no stretch of the imagination getting in over our heads. Our monthly mortgage will be about 18% of our NET monthly income. And we have a ridiculously low debt to income ratio.
So there are lots of first time homebuyers out there, that will benefit from this bill.
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The problem I see a lot, is that buyers are scared to buy because of all the bad news. Rightfully so, but some are just waiting and waiting, and it's hurting the market and not allowing the economical cycle of real estate to continue(buying and selling.)
