Info about the new housing law signed this morning --- up to $7500 credit for 1st time homeowners?

Question

I have read reports from the news websites about how this new law will assist first time homeowners by providing a tax credit of UP TO $7500 if purchased between April 08 and July 09.

What are the specifics on that?

Who qualifies and for how much?

Answer 1

Good News:  Up to $7500 refundable credit for first-time home buyers under the income limits. (I am not sure of the income limits but I think that I saw $75k for Single and $150k for Married.)

Bad News:  It must be paid back on you tax returns for the next 15 years.  In other words your taxes will go up by $500 for the next 15 years if you get the whole $7500.  Also, if you sell be for 15 years, you must pay back the balance immediately.

It really isn't a true "credit".  It is just an up to $7500 interest free loan.

Answer 2

This article lists the benefits of the tax credit, http://www.monitorbankrates.com/mortgage...

Answer 3

It is not really a credit since it must be paid back.  Think of it as an interest free loan that you pay back in a few years and you will be right on the money.

Answer 4

ok... whew this is a long answer. I know because I was searching for a house at this same time. The 7500 dollar tax credit is actually a loan paid back over 10 years; 10% a year.

The 7500 maxes out at that, its 10% of gross total on housing purchase.

To qualify house must be purchased between April 1, 2008 and July 1, 2009. Must be pre-forclosure or foreclosed now.

F.Y.I all downpayment assistance programs won't work after September 30.2008 so buy soon if you need that

Answer 5

$7500 will go a LONG way to pay for your closing costs, because soon you will NEED to have your own 3% down.

Even if you pay it back with your tax refunds in the future, you will be a HOMEOWNER! Tax benefits will run for years and years, and your equity WILL grow once all these foreclosures are bought up.

Get qualified! You can't take advantage of the program without having an LSR from a mortgage professional (backed up by AU approval). An LSR tells a seller that you can get financing to close, and you will need an LSR to make an offer on a house today.

Get your paystubs/w-2s/bank statements together and call up a mortgage pro today!