First Time Homebuyer Tax Credit Information <= Link to pdf with FAQ and IRS Form.
I am getting lots of questions about the $7,500 First-Time Homebuyer Tax Credit authorized by the Housing and Economic Recovery Act of 2008.
Seems that many believe to be a Down Payment Assistance Program. And it is not.....
But, it could be used to pay closing costs on a FHA Streamline Refinance of a recently closed FHA loan!!! I have a borrower doing that now.
REALTORS: Please feel free to share the above document. I suggest you print one and keep it with you as you are working with clients. And, as always, I am available for follow up questions.
Show me some love.... Re-Blog this article.
Tom Burris
DallasLoanGuy.com
Dallas, TX"Your Dallas Mortgage Consultant"
http://www.dallasloanguy.com/
Texas Home Loans Dallas Mortgage LoansI write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!
While I personally focus on Texas Home Loans and First Time Home Buyers.... I do lend in other areas.
First Time Homebuyer $7,500 Tax Credit Information - With IRS Form 5405
Via Tom Burris | FHA VA & Conv. Texas Mortgage Loans (DallasLoanGuy.com):
5 comments • Shirley Parks, REALTOR® - SRES • January 17 2009 07:53AMComments
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Shirley - When the program was first introduced I read an article that had laid out a way you could use it as a downpayment. It was sketchy and I wouldn't advise anyone to do it, but it revolved around the fact that you could take the credit in 2008 for a house you were buying in 2009. Basically, you take the credit and file early in 2009 (2008 taxes), receive your refund and turn around and buy a house with it. What frightened me that this was being advised (I believe it was Showcase where I read it) was that if you didn't close in time, what happened? I can't imagine the government would be very pleased with you tying up their money for a few months. This is the problem with programs like these...they are released, people begin speculating, calculating, and trying to figure them out before anyone has a firm grasp on how they work. By the time the public is inundated with half-information, they're confused and don't know which way is up. For evidence look no further than the DTV converter box mess - I'm willing to be there's a lot of people with converter boxes that didn't need them and never will.
Shirley, as I read the IRS rules, it says this is a TAX CREDIT, which means you first have to have incurred the charges, paid for it.. then you can get it back, sorta like a rebate, but this is only a LOAN to claimants, they will have to repaid this rebate, at no interest, with a $500. payment each year, starting the second year and going until the rebate (tax credit) is paid in full or until the house sells then the homeowner will owe the entire amount.
This tax credit will not help people who do not have the $7,500. up front. It is a TAX CREDIT, rebate, loan. Not a tax advance.
Hi Gail, I reblogged the post of Tom Burris, Dallas Loan Guy. As he requested, I showed him some love by reblogging the post. I know that it is actually a loan.
Matt, Re the converter boxes, things never seem to be the way they are presented on the news.
HI Shirley.. I went to Tom's post and commented there too. I am totally anti this LOAN. I think in 3 years we will see a bunch of pain caused by it.. and one entity you don't want to ire is the IRS. :)
Gail, You have a good point and maybe be right about the pain down the road.