voting on the tax credit

[Anonymous]

---

@Anonymous wrote:

Pardon for being naive but how do you borrow against a credit that you dont have? Didnt realize that you could walk in with no money down and borrow against a credit that you dont have for closing cost to get into a house.

Message Edited by HeelsFan72 on 10-28-2009 07:47 PM

---

As I said, I did put money down. The 3.5% down payment was my own money, plus the seller paid part of the closing costs. The process was described by another poster. It was a loan that would not have been used had we not closed, so yes, we did borrow against money that we didn't have, but we wouldn't have needed the loan if we didn't end up closing, and if we did close, we would get the credit (which we did), so...the only reason we went this route was so that we wouldn't have to scrape together every penny we had to close, and I'm glad, because we've had some things come up that we thankfully had the money to take care of. We didn't use the full $8000; the majority of it sat in the bank until we got the check from the IRS to pay the loan off.

Message Edited by vitorbr on 10-30-2009 02:30 PM

[Anonymous]

Makes sense. I like that route and will likely try to do the same.

[GregB]

If they end the tax credit, the house prices will likely drop much more than the credit. Much better deals available if/when that happens.

In most markets prices are still high compared to supply/demand in an uncontrolled market.

If you are in a stable market that didn't see the silly overpriced nonsense of 2004-2006, the tax credit might make alot of sense.

I think the best way to buy a house is to buy it looking at keeping it and paying a reasonable price for the house as your home.

I know many knowledgeable investors and they are NOT buying, at least here in SoCal.

[Anonymous]

I wonder how much this really helped the economy. After we got engaged last year, we decided we would buy a house this summer. Long before we knew of any $8,000 credit. Even without it, we would have bought our home. I wonder how many people only bought because of the credit. I honestly don't think there are many. Maybe there are some who bought earlier than they otherwise would have. But how much does it help the economy that you buy a house in July 2009 instead of July 2010 or July 2011? Not much, if you ask me.