More on the $8,000 new-buyer tax credit
Eileen Ambrose, the Sun's personal finance columnist, offers some details about putting the $8,000 first-time homebuyer tax credit toward down-payment or closing costs. Who qualifies, how big the mortgage can be, where you can call for more information, etc. Her column is here.
And remember, this doesn't reduce the minimum down-payment requirement:
The advance can't be used for the 3.5 percent down payment required under FHA-insured loans. But it can be applied to other purchase costs or to make a bigger down payment, thereby reducing your monthly mortgage payments.
Anyone out there planning to use the credit this way?
Posted by Jamie Smith Hopkins at 10:27 AM | Permalink
| Comments (6)
Categories: First-time buyer tax credit
Categories: First-time buyer tax credit
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Comments
I actually had a closing two weeks ago, just before the new changes. So my buyer just missed out, but I actually sent her your first article anyway just as an interesting read. She told a few of her friends and one of them just put a contract on a house that she would have missed out on if not for having that $8k up front.
Posted by: Carson | June 9, 2009 11:17 AM
Interesting, Carson -- thanks for letting me know.
Posted by: Jamie Smith Hopkins | June 9, 2009 11:43 AM
I didn't see any mention in the Ambrose article about the income limits that apply to this tax credit.
Posted by: John | June 9, 2009 12:39 PM
Good point, John. Here's something on income limits from the National Association of Realtors:
"The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit."
Posted by: Jamie Smith Hopkins | June 9, 2009 12:59 PM
So high-end homes are essentially excluded. Good. More impetus to crash.
Posted by: Darwin Rules | June 9, 2009 1:18 PM
The first time home buyers that I have settled so far have all done an amended tax return. I created a website as a resource for 1st time home buyers with all the details and more to come at MD $8000 Credit, take a look and let's keep spreading the word!
Zach Hosford
Long and Foster Timonium
443.935.6470
Posted by: Zach Hosford | June 9, 2009 9:01 PM