topic Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!! in Mortgage Loans

$7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

DallasLoanGuy — Thu, 29 Jan 2009 03:41:21 GMT

http://www.bizjournals.com/dayton/stories/2009/01/26/daily43.html

stay tuned

Passed the house tonight!!!

Message Edited by DallasLoanGuy on 01-28-2009 09:41 PM

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

WannaHouse — Thu, 29 Jan 2009 03:42:24 GMT

WOO HOO!!! (jumping up and down)

Thanks for posting DLG!

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

DallasLoanGuy — Thu, 29 Jan 2009 03:50:22 GMT

i havent seen the bill... i dont look at them until they pass,,,,,

might be limited to those wo closed this year.

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

WannaHouse — Thu, 29 Jan 2009 04:01:00 GMT

I haven't bought yet...just preapproved and still looking.

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

Watchmann — Thu, 29 Jan 2009 04:49:00 GMT

It's a beautiful world. The 95% of homeowners who bought responsibility and have never paid late, much less defaulted, get a sharp stick in the eye and get the bill to fund this nonsense. And people are jumping up and down saying how great this is. Excuse me for not sharing in this enthusiasm as we roll down the socialist road. Then again, I'm just regarded as an old fuddy duddy out of touch with modern economics.

Message Edited by Watchmann on 01-28-2009 10:49 PM

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

ShanetheMortgageMan — Thu, 29 Jan 2009 04:56:53 GMT

Ca-ching... however the House is much less conservative in their ways & voting than the Senate is from past votes on mortgage related bills.

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

DallasLoanGuy — Thu, 29 Jan 2009 05:45:59 GMT

@ShanetheMortgageMan wrote:
Ca-ching... however the House is much less conservative in their ways & voting than the Senate is from past votes on mortgage related bills.

what? you actually looking at this thru a political lense?

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

igdycsmG6 — Thu, 29 Jan 2009 11:07:20 GMT

I read the Senate wanted to make it available to all homebuyers. When I did my taxes I reviewed that and if I have been a first home buyer my refund would of been $14,000 instead of $6500, since I bought a home last year. I wonder if I can re-submit if the Senate makes the adjustment? Of course unless its not retro.

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

Anonymous — Thu, 29 Jan 2009 12:44:32 GMT

@Watchmann wrote:
It's a beautiful world. The 95% of homeowners who bought responsibility and have never paid late, much less defaulted, get a sharp stick in the eye and get the bill to fund this nonsense. And people are jumping up and down saying how great this is. Excuse me for not sharing in this enthusiasm as we roll down the socialist road. Then again, I'm just regarded as an old fuddy duddy out of touch with modern economics.
Message Edited by Watchmann on 01-28-2009 10:49 PM

I usually agree with you but I don't see eye to eye with you on this one. I think that this will actually make a difference in the declining housing market. Given that down payment assistance is virtually unavailable, gone are the days that people can get 100% financing and no-doc loans are non-existent, people will have to actually make a decent investment in getting themselves into a home these days. If the house market starts to turn upwards from where it is now this will make a huge impact on the economy. Offering an incentive to buyers in an especially scary market has the potential to be much more effective then sending out stimulus checks that the majority of tax payers won't use to spend/stimulate the economy or giving millions of our tax dollars to banks that turn around and purchase new corporate jets, etc.

I may not have had as much $$ as you over the years, but I have always been very careful about what I did with it. NEVER overspent, never maxed out credit cards and never asked for a dime from anyone - not parents, the government, etc. As a single mother in my 20's this was not an easy task. I've worked darn hard to fight through the damage someone else did to my credit and payed off bills that I never had any attachment to, all the while saving enough for a 20% downpayment for the house I'm just not looking for and still keeping enough in the bank equivalent to approx. 2 years in cash reserves of the house payment I'll have.

With that said, I believe I also will be amongst the 95% of homeowners you say bought responsibly. I've rented since I was 17-18ish and am in my 30's now, I've never paid late on my rent once. Not ever. Not even into the few days grace period. THIS bill is something I do agree with. Again, much better in my opinion to flinging around free stimulus checks to anyone and everyone....the irresponsible will spend it in 2 seconds on something stupid and probably still have late bills the won't tend to, yet the responsible will likely save it or pay off a current outstanding debt - which will do little for the economy. This bill actually serves a purpose in my opinion and you don't just have to check the mailbox to get it. The one thing I don't agree with is the push to make the tax credit available as your down payment. I know there are exceptions to every rule, but I really feel that if people have to make some type of initial investment in their home, they will likely fight a lot harder to keep it. Many people that walked away from homes were those that had no investment in it in the first place. They did cause deterimental damage to their credit, but at a time when money is tight I think the green is the first thing people think about - and the consequences later on. Had some or all of these people been required to put something down to get into their homes, I think less of them would have been sending jingle mail.

Message Edited by UpUpUp on 01-29-2009 07:44 AM

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

Anonymous — Thu, 29 Jan 2009 13:20:00 GMT

Very well said, UpUpUp!!!

I would just add one comment:

Contrary to popular opinion, your house is

not an investment. Your house is your home.

It's the biggest purchase most of us will ever

make in our lifetimes, but it's not meant to be

a bank ATM or a hot stock that can be traded

like baseball cards. It's where we raise our families

and build memories that last into eternity. I think

a lot of people conveniently moved those values to

the sidelines while they were chasing dollars.

A tax credit should be just that --- a credit.

In its present form, it's nothing more than a

long-term loan masquerading as a credit.

But if everything works out, it will actually be

something that gives people genuine incentive

to buy a home.

Stabilizing the housing market is the key to turning

around the economy. No one is suggesting that lenders

give away mortgages to applicants just because they

are breathing. Frankly, that's a big reason why we got

into this mess in the first place. But I believe this measure goes

a long way to offering a responsible solution to an incredibly

messy situation.

Once again, well said UpUpUp!!!

CanDo

"The right attitude is everything"

Message Edited by CanDoAttitude on 01-29-2009 05:09 AM

Message Edited by CanDoAttitude on 01-29-2009 05:11 AM

Message Edited by CanDoAttitude on 01-29-2009 05:18 AM

Message Edited by CanDoAttitude on 01-29-2009 05:20 AM

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

Anonymous — Thu, 29 Jan 2009 13:36:55 GMT

Not sure if I was reading this article correct but it looks as if the Bill being presented to the Senate also makes the credit available until the end of august........

Both the Senate and the House versions of the new act remove the requirement that buyers repay the credit. The Senate bill applies retroactively to any purchase completed between January 1, 2009 and the end of August. The House version is also retroactive to the start of the year, and expires at the end of June. As long as buyers don't sell for at least 36 months, they keep the money.

http://money.cnn.com/2009/01/29/real_estate/tax_credit_near/index.htm?postversion=2009012907

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

Anonymous — Thu, 29 Jan 2009 14:01:13 GMT

I was reading the same article today but does it mean that people who bought their home in 2008 does not qualify for this tax credit? For example I bought my home in June of 2008 does it mean I would have to pay the $7,500 over 15 years?

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

LisaJ — Thu, 29 Jan 2009 14:14:47 GMT

Not everyone who is getting the loan/rebate/whatever is irresponsible.

I was a single mom for many years, living in a teensy apartment and saving every last dime for a future. I had many people offer to help me "get a house" with a piggyback loan, etc., but I held true to my gut which was screaming "No". For a time I lived with my sister, but by the time I was in good enough financial shape to buy my own home, the housing here in Florida was over the top expensive, driven up by the market that now sees people in foreclosure because they used their homes as ATMs, or because they were put into a house that someone should have known was not affordable.

This year, through our diligence and planning and saving, we were able to get an FHA loan for a home I never imagined I could have. It is a fixer upper and needs some work, but we bought in a good neighborhood for almost half of what we would have paid three years ago.

The $7500 I am getting back will go toward needed repairs and extra principle payments. I do feel the frustration of those that bought responsibly years ago, but not all recent home buyers are irresponsible. I would gladly pay the money back, but it would be wonderful for me and my family if I did not have to do so.

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

Anonymous — Thu, 29 Jan 2009 14:34:41 GMT

Such great news.

I have read many board and have seen alot of "old timers" complaining about the credit. Either way , I am happy to say im a first time home buyer and if all goes well I will be claiming my free 7500 dollars !

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

Anonymous — Thu, 29 Jan 2009 14:50:05 GMT

You know what else I just thought of. I am self-employed and I literally am paying thousands more in income tax this year due to the fact that I had to forego many allowable business deductions in order to get my documented income where I need it to be in order to qualify. Perhaps this credit will make this a wash for me this year. That would be really nice considering I wayyyyy overpaid to get myself into a home this year!

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

KLGFCG — Thu, 29 Jan 2009 16:36:40 GMT

I know I'm being sour grapes, but this whole fiasco is a bit of a kick in the teeth to those who closed just before the new 2009 cut-off. I closed November 18, interest rates promptly dove at least 1% and now, the $7500 credit looks like it'll be free money.... if I'd only closed 2 months later. I know this type of thing is a crapshoot and those who closed before the $7500 credit got nothing. I also know that $7500 interest free is still a fabulous deal and I love my house, but I just wanted to whine a little. The MI housing market is going nowhere fast and I probably could have waited, got the same house, had lower payments, and gotten free money. Sigh. Anybody want to make my day and say there's a tiny chance they'll just make the no payback retroactive all the way back?

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

Anonymous — Thu, 29 Jan 2009 16:50:06 GMT

@KLGFCG wrote:
I know I'm being sour grapes, but this whole fiasco is a bit of a kick in the teeth to those who closed just before the new 2009 cut-off. I closed November 18, interest rates promptly dove at least 1% and now, the $7500 credit looks like it'll be free money.... if I'd only closed 2 months later. I know this type of thing is a crapshoot and those who closed before the $7500 credit got nothing. I also know that $7500 interest free is still a fabulous deal and I love my house, but I just wanted to whine a little. The MI housing market is going nowhere fast and I probably could have waited, got the same house, had lower payments, and gotten free money. Sigh. Anybody want to make my day and say there's a tiny chance they'll just make the no payback retroactive all the way back?

TOTALLY understand the want to whine about missing this by just a hair. That would be my luck. I've never had much in way of good fortune. Always missed things just by a smidge! Hopefully it will be retroactive to the date they first initiated the credit. The bright side is that you now own a home of your own and even if the housing market isn't going anywhere, you have a HOME and you aren't paying anyone's mortgage, you are paying your own. I could honestly care less about tax credits or loans. I wasn't going to take the loan, but if i can get the tax credit, especially after paying out the butt in order to be able to purchase my home this year, it'll be a nice unexpected surprise. Regardless though, I'll be darn happy just to be sitting on the dirty little floor of my fixer upper after closing. Try not to feel ripped off, I'm jealous of you!

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

Anonymous — Thu, 29 Jan 2009 17:00:41 GMT

I'm not sure how this first time homebuyer credit can be considered a kick in the teeth to responsible home owners.

This is targeted at people waited out the overpriced market to buy a house....not the people taking mortgages they couldn't afford.

I will be buying in the time frame, and I'm not sure I will qualify for it incomewise. (We will have to wait and see how 2009 comes out in the wash...), however it *is* a small security blanket for me making the decision to buy, as a self employed single person. If my income falls lower then I expect in 2009, at least it will lower my tax liability a bit too.

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

Anonymous — Thu, 29 Jan 2009 17:03:35 GMT

KLGFCG, I'm in the same boat. Closed 08/08. Oh well, $500 per year payback isn't the end of the world but I agree that it sure seems a little unfair if they go with the Jan 1, 2009 date.

Re: $7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

Anonymous — Thu, 29 Jan 2009 17:32:03 GMT

Whether you made the cutoff or just missed it,

this is a GREAT deal.

We've all experienced that sinking feeling in our stomachs

when we bought things on sale at a "great price" --- only to see

the very same items somewhere else 30% cheaper. So we make

the best deal we can as the opportunities present themselves to us.

The most important thing is that we honor our agreements, which is

something the major banks and Wall Street have gone out of their way

to avoid.

But like UpUpUp pointed out, the only portion I don't like

is that the tax credit can be used as a downpayment.

I believe someone should qualify for a mortgage, get approved

for a mortgage and go to closing for that mortgage. THEN

you should get the tax credit...not before. I also like the

fact that the credit doesn't need to be paid back as long

as you stay in the home for 3 years. This will promote

neighborhood stability, price stability and future appreciation.

So like I said, anyway you slice it this is a good thing.

It is targeted help at the very industry that caused the

problem in the first place. To me, that's money well invested.

CanDo

"The right attitude is everything"