Comments on: Using the $8,000 First Time Homebuyers Tax Credit as a Down Payment. Sort of. http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/ Phoenix Real Estate -- Anything and everything about it. Plus random musings... Now with Phoenix area MLS Listings Search! Sat, 21 Nov 2009 05:34:24 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Staten Island Real Estate http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/#comment-59504 Staten Island Real Estate Thu, 20 Aug 2009 14:52:57 +0000 http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/2342#comment-59504 Before assuming anything, anyone thinking about utilizing the first time buyers tax credit should get professional advise. Before assuming anything, anyone thinking about utilizing the first time buyers tax credit should get professional advise.

]]> By: StatenIslandRealEstateAgent http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/#comment-58777 StatenIslandRealEstateAgent Thu, 20 Aug 2009 12:52:57 +0000 http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/2342#comment-58777 Before assuming anything, anyone thinking about utilizing the first time buyers tax credit should get professional advise. Before assuming anything, anyone thinking about utilizing the first time buyers tax credit should get professional advise.

]]> By: Real Estate Marketing http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/#comment-57838 Real Estate Marketing Sat, 11 Jul 2009 05:46:19 +0000 http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/2342#comment-57838 Because of continuous economic downturn, many realtors and business establishment were engaged in financial issues, they tend to get big loans in order for their business to survive in this time of depression. Because of continuous economic downturn, many realtors and business establishment were engaged in financial issues, they tend to get big loans in order for their business to survive in this time of depression.

]]> By: Bill Parker, CPA* http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/#comment-57188 Bill Parker, CPA* Sat, 27 Jun 2009 21:00:15 +0000 http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/2342#comment-57188 Hello All: Couple thoughts: First off, I have asked around to a number of my friends who are still in the tax world and every one of them has indicated to me just how easy and effective it has been for their clients to get back the $8,000 tax credit. Basically, you just file an amended 2008 tax return (only have to deal with this one issue), e-file it, and ask for automatic deposit to your bank account. Monies are there within 2 weeks, if not sooner. Second, with this in mind, it makes the use of the "up-front" downpayment, etc., assistance a very expensive use of money. Because the provider of the "up-front" assistance will be allowed to charge 2% (or, 2 1/2%) to process the loan, it equals about a 52% annualized interest charge (2% times 52 weeks in a year, divided by 2 weeks to get refunded). I tell my clients, "If you can get the money through savings or a gift, you are much better off." (Amazing, how my clients end up doing a gift back to the donor for an amount that, coincidentally I am sure, equals the exact amount gifted to them...) As an aside, I do not know of any one making these loans in the Phoenix area at this time, either. Finally, yes, I definitely believe the $8,000 tax credit has had a positive impact on the housing market, even if it is concentrated in the $200,000 and below niche. Remember, there are income limits attached to it, so not sure how that would work in expanding it to everyone as those looking to buy $400,000 homes tend to make higher incomes (or, at least we hope so...:) ). Hello All:

Couple thoughts: First off, I have asked around to a number of my friends who are still in the tax world and every one of them has indicated to me just how easy and effective it has been for their clients to get back the $8,000 tax credit. Basically, you just file an amended 2008 tax return (only have to deal with this one issue), e-file it, and ask for automatic deposit to your bank account. Monies are there within 2 weeks, if not sooner.

Second, with this in mind, it makes the use of the “up-front” downpayment, etc., assistance a very expensive use of money. Because the provider of the “up-front” assistance will be allowed to charge 2% (or, 2 1/2%) to process the loan, it equals about a 52% annualized interest charge (2% times 52 weeks in a year, divided by 2 weeks to get refunded). I tell my clients, “If you can get the money through savings or a gift, you are much better off.” (Amazing, how my clients end up doing a gift back to the donor for an amount that, coincidentally I am sure, equals the exact amount gifted to them…)

As an aside, I do not know of any one making these loans in the Phoenix area at this time, either.

Finally, yes, I definitely believe the $8,000 tax credit has had a positive impact on the housing market, even if it is concentrated in the $200,000 and below niche. Remember, there are income limits attached to it, so not sure how that would work in expanding it to everyone as those looking to buy $400,000 homes tend to make higher incomes (or, at least we hope so…:) ).

]]> By: Petra Norris http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/#comment-56663 Petra Norris Wed, 17 Jun 2009 02:24:28 +0000 http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/2342#comment-56663 I like that buyers still have to come up with their 3.5% Downpayment for FHA loans. My experience has shown stronger long term buyers went in to their purchase with a least that much skin in the game. *<em>*<em>Petra Norris´s last blog post..<a href="http://www.lakelandfloridaliving.com/2009/06/15/lakeland-florida-a-great-place-to-live/">Lakeland Florida – A Great Place to Live</a></em></abbr></abbr></em> I like that buyers still have to come up with their 3.5% Downpayment for FHA loans. My experience has shown stronger long term buyers went in to their purchase with a least that much skin in the game.

**Petra Norris´s last blog post..Lakeland Florida – A Great Place to Live

]]> By: Jay Thompson http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/#comment-56575 Jay Thompson Mon, 15 Jun 2009 15:30:13 +0000 http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/2342#comment-56575 Bobbie - no, the current $8,000 first time homebuyer tax credit discussed in this and the linked post does not have to be repaid. There was an older $7,500 "credit" that has to be repaid, making it in effect, a no-interest loan, not a true credit. Bobbie – no, the current $8,000 first time homebuyer tax credit discussed in this and the linked post does not have to be repaid. There was an older $7,500 “credit” that has to be repaid, making it in effect, a no-interest loan, not a true credit.

]]> By: Nearly Mid-2009 Market Report for Charlottesville and Albemarle real estate market | Real Central VA http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/#comment-56566 Nearly Mid-2009 Market Report for Charlottesville and Albemarle real estate market | Real Central VA Mon, 15 Jun 2009 11:06:13 +0000 http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/2342#comment-56566 [...] $8,000 tax credit (h/t TPREG)is absolutely on the minds of first-time homebuyers. Why wouldn’t it be? It’s free [...] [...] $8,000 tax credit (h/t TPREG)is absolutely on the minds of first-time homebuyers. Why wouldn’t it be? It’s free [...]

]]> By: Bobbie McGowan-RE/MAX Ottawa http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/#comment-56551 Bobbie McGowan-RE/MAX Ottawa Mon, 15 Jun 2009 04:57:47 +0000 http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/2342#comment-56551 I have heard some about the tax credit your government is offering first time home buyers-from my understanding it has to be paid back starting in 2010, is that correct? I have heard some about the tax credit your government is offering first time home buyers-from my understanding it has to be paid back starting in 2010, is that correct?

]]> By: Nearly Mid-2009 Market Report for Charlottesville and Albemarle | Real Central VA http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/#comment-56542 Nearly Mid-2009 Market Report for Charlottesville and Albemarle | Real Central VA Mon, 15 Jun 2009 04:07:48 +0000 http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/2342#comment-56542 [...] $8,000 tax credit (h/t TPREG)is absolutely on the minds of first-time homebuyers. Why wouldn’t it be? It’s free [...] [...] $8,000 tax credit (h/t TPREG)is absolutely on the minds of first-time homebuyers. Why wouldn’t it be? It’s free [...]

]]> By: Leon Belenky-Miami Beach Luxury Homes http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/#comment-56391 Leon Belenky-Miami Beach Luxury Homes Wed, 10 Jun 2009 23:14:01 +0000 http://www.phoenixrealestateguy.com/using-the-8000-first-time-homebuyers-tax-credit-as-a-down-payment-sort-of/2342#comment-56391 Great advice on being careful about anyone saying they can "help you" with getting the funds-I have heard of some frauds geared at taking advantage of home buyers that just haven't realized all the details of the tax credit or realize they should refer to their lender to get all the details. Such a shame. Great advice on being careful about anyone saying they can “help you” with getting the funds-I have heard of some frauds geared at taking advantage of home buyers that just haven’t realized all the details of the tax credit or realize they should refer to their lender to get all the details. Such a shame.

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