[Prissy]

Originally Posted by wuufer001

for the 8K, i think you have to close at end of November, but don't quote me on that.
i just hope my house will get finished and will able to close before deadline.
this weather here is just killing me. been nearly 2 weeks the builders didn't do crap.

+1 on closing before the very end of Nov. But I am still kind of confused on the $8000, do you just get a check from the gov? I know last yr u just get $7500 tax deductible. Anyone?

[ejheverest]

figure out what mortgage you can afford right now and then open up a savings account and have "that amount" automatically deducted and put into the account. If you don't mind it after one year then go buy a house. Remember its a long term investment and will only cost you money if you want to sell it within the next 5 years.
Goodluck with your decision whatever it may be.

[yomama69]

Originally Posted by wuufer001

for the 8K, i think you have to close at end of November, but don't quote me on that.
i just hope my house will get finished and will able to close before deadline.
this weather here is just killing me. been nearly 2 weeks the builders didn't do crap.

November 30th is the last day to close to claim the 8,000 dollars.

[yomama69]

Originally Posted by Prissy

+1 on closing before the very end of Nov. But I am still kind of confused on the $8000, do you just get a check from the gov? I know last yr u just get $7500 tax deductible. Anyone?

Now you get basically 8,000 dollars cash if you don't owe any taxes. If you owe 2,000 dollars in taxes, you will get a check for $6,000.

[BMW2006]

Originally Posted by Prissy

+1 on closing before the very end of Nov. But I am still kind of confused on the $8000, do you just get a check from the gov? I know last yr u just get $7500 tax deductible. Anyone?

From what I understand it's 8k straight cash, not just a deductible. Which you will have to repay (I'm assuming with interest) if you are foreclosed on, sell, or move out within 3 years. So if you are not planning longer term than that, don't count on it. And if you are singing up for a mortgage and counting on the 8k to make it affordable, I wouldn't count on it either.


-BMW2006

[lib]

Another thing to keep in mind regarding the 8k:

Filing single, you only get the full amount if your modified adjusted gross income is below 75k. The amount decreases linearly from that point and reaches 0 once you pass 95k.

[cyraschris]

Originally Posted by lib

Another thing to keep in mind regarding the 8k:

Filing single, you only get the full amount if your modified adjusted gross income is below 75k. The amount decreases linearly from that point and reaches 0 once you pass 95k.

So a first time home-buyer that makes more than 95k (filing single) doesn't get ANY benefit from buying now (aside from the market being low of course)?

[Blake]

Originally Posted by lib

75-95k is the new rich.

[Zephyr15]

Originally Posted by cyraschris

So a first time home-buyer that makes more than 95k (filing single) doesn't get ANY benefit from buying now (aside from the market being low of course)?

Correct. I heard a rumor that there was a movement in Congress to remove the income limit, but I have not been able to confirm that it's anything more than wishful thinking.

[wuufer001]

Originally Posted by UncleWede

And what does THAT have to do with the weather???

the rain keeps pouring

[Vyruz Reaper]

Originally Posted by MCS

My 2 cents:

Buy if you think you have a good probability of staying for at least 5 years.

You're a young person, so a move for personal or work reasons is not far fetched...

Financially, if you qualify - kudos to you. The hardest part about buying the first home is coming up with the 20% down payment. I may of not read closely, but if you got the scratch - good for your discipline.

I do agre with the previous poster about their's never been a better time, but warning/disclaimer - Some economists/financial guys still predict a 10-22% drop in housing prices... Therefore, be sure you have the time horizon in mind to stick around until your purchase appreciates (hence the 5 year window)

FHA loans will let you put down 3.5%

[stooken]

Originally Posted by BMW2006

You drive a nice car now, but most of the time, they are a massively depreciating asset. Trading one for another won't help you as much as sticking with what you have. Homes will begin to appreciate again, you just need to be patient. Put off the 335i and start spending money where it will work for you.

I am going to print that out and post it all over the place! LOL it will be my daily reminder to say, F cars!

[number335]

Here's something my real estate agent just sent me. It states that the 8k tax credit may be used as a down payment.

Daily Real Estate News | May 12, 2009 | Share
Big Improvement to First-Time Buyer Tax Credit
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Other Solutions for Today's Market

During his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. “I do think we have some early signs that the market overall is stabilizing,” Donovan says. “Since January we’ve seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate.”

The morning session included a panel discussion that was moderated by CNBC’s Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation’s taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort.

“Right now the Federal Reserve is the market,” said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. “What will be the effect when the Fed stops buying?” Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely.

“We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy,” said NAR President Charles McMillan. “We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond.”

The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.

http://www.realtor.org/RMODaily.nsf/...2?OpenDocument

[Prissy]

do you guys know how to get the $8000 from the gov? File it with your tax?

[TunedM2C]

+ Money is cheap
+ Prices are cheap
+ Real estate will go up long-term
+ $8k credit can be used for down payment now
+ Interest write off's
+ Real estate tax write off's
+ You're not paying someone else's mortgage
+ Pride of ownership

Need I go on?

BTW, if you need a mortgage, PM me.

[yomama69]

Originally Posted by Prissy

do you guys know how to get the $8000 from the gov? File it with your tax?

You can either file an amended 2008 return or claim it on your 09 return next year.

[yomama69]

Originally Posted by Tuned1

+ Money is cheap
+ Prices are cheap
+ Real estate will go up long-term
+ $8k credit can be used for down payment now
+ Interest write off's
+ Real estate tax write off's
+ You're not paying someone else's mortgage
+ Pride of ownership

Need I go on?

BTW, if you need a mortgage, PM me.

Rates are so low. I close in 15 days and locked in at 4.75%. This is a big house, but I'll probably turn it into investment property in a few years because the interest rate is so low.

[TunedM2C]

Originally Posted by Prissy

do you guys know how to get the $8000 from the gov? File it with your tax?

Check the box on your '09 filings or get it at closing. If you opt to use it as part of your down payment, the mortgage will have to be FHA.

http://blogs.wsj.com/developments/20...t-time-buyers/

[yomama69]

Originally Posted by Tuned1

Check the box on your '09 filings or get it at closing. If you opt to use it as part of your down payment, the mortgage will have to be FHA.

My lender said that isn't available just yet. They're still in the process. He said I can't do it for my closing.

[TunedM2C]

Originally Posted by yomama69

You can either file an amended 2008 return

And you can do this as well.

[yomama69]

Originally Posted by Tuned1

And you can do this as well.

That's what I'm going to do. Don't want to wait til 2010 to get it when it can be invested for 4 months before that.

[TunedM2C]

Originally Posted by yomama69

My lender said that isn't available just yet. They're still in the process. He said I can't do it for my closing.

That is correct. It hasn't trickled down to us just yet. No ETA either but hopefully it's sooner rather than later.