Q about 7500 Tax Rebate and bank vs broker....(you guys are such a wealth of info)

[Anonymous]

I have all my ducks in a row now to buy a house. Credit reports are clean, money in the bank and I just found out thanks candoattitude that with the new income limits, I am eligible for the USDA Mortgage Program. I am so excited. My questions are these 1.) I know about the 7500 tax rebate and how it has to be repaid and all of that but do I understand it correctly that I can claim it on the taxes I am filing this spring aslong as I move in before July 1, 09 (this summer) If this is so and taxes are due April 15th but I don't settle until after April 15th, should I file a request for an extension or file my taxes and then file an ammended return? 2) I know what real estate agent I am going to use, he sold my grandparents house and sold them another one and he used to work for the same company my grandfather did when he bought and sold real estate but I am wondering where to start with a mortgage, a bank or a broker? what are the advantages or disadvantages of one over another?

Thanks for your help! You guys are great! I started this journey in June with credit scores in the low 600's and now I am over 750!

[ShanetheMortgageMan]

From my understanding on the taxes, yes you can claim it when you file by 4/15/09 even if you aren't buying a home until after you file, but would be before 7/1/08.  No amending the tax returns would be required.  I know of someone I am helping who already filed and claimed it and is in the same situation.  I'd definitely ask a CPA or the IRS before filing if you have questions though.

Ask your real estate agent if they have any recommendations for a loan officer, most likely they will, so that'd be a good place to start.  I'd also ask friends, family, co-workers if they'd recommend their loan officer as well.  Nothing beats a good recommendation.

[Anonymous]

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@Anonymous wrote:

I have all my ducks in a row now to buy a house. Credit reports are clean, money in the bank and I just found out thanks candoattitude that with the new income limits, I am eligible for the USDA Mortgage Program. I am so excited. My questions are these 1.) I know about the 7500 tax rebate and how it has to be repaid and all of that but do I understand it correctly that I can claim it on the taxes I am filing this spring aslong as I move in before July 1, 09 (this summer) If this is so and taxes are due April 15th but I don't settle until after April 15th, should I file a request for an extension or file my taxes and then file an ammended return? 2) I know what real estate agent I am going to use, he sold my grandparents house and sold them another one and he used to work for the same company my grandfather did when he bought and sold real estate but I am wondering where to start with a mortgage, a bank or a broker? what are the advantages or disadvantages of one over another?

Thanks for your help! You guys are great! I started this journey in June with credit scores in the low 600's and now I am over 750!

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Just to add a pomt before counting on the 7500 tax credit I would find out if the USDA Mortgage program qualifies for it.  One of the original rules was government loans that are finance with mortgage revenue bonds did not qualify for the rebate.  Basically they were only planning on giving the rebate to people who got conventional loans. Now Obama may change that stipulation but that's in the original language.  Below is off the irs website

. Who cannot take the credit?

A. If any of the following describe you, you cannot take the credit, even if you buy a main home:

• Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.
• You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
• You stop using your home as your main home.
• You sell your home before the end of the year.
• You are a nonresident alien.
• You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year.
• Your home financing comes from tax-exempt mortgage revenue bonds.
• You owned another main home at any time during the three years prior to the date of purchase. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another main home at any time from July 2, 2005, through July 1, 2008

[ShanetheMortgageMan]

I'm pretty certain that using the normal USDA guaranteed version does not come from tax-exempt mortgage revenue bonds (MRB).  Using tax exempt mortgage revenue bonds makes one subject to the "recapture tax", and with my USDA training that was only discussed when using the Direct version of USDA and also using their payment subsidy program.  Now there are some certain lenders who offer the USDA loan under a MRB program, but the MRB program is an "overlay" on top of the USDA program - which could also be used for FHA, VA, and even Fannie's & Freddie's "MyCommunity" and "HomePossible" program.  One example of that type of overlay is the Texas First Time Homebuyer Program offered via the Texas Department of Housing and their approved lenders.