More Details $8,000 Home Buyer Tax Credit, IRS Filing Rules
Posted by Dennis Pease on Saturday, February 28th, 2009 at 1:05am.
Mortgage rates have gone up a tick, as noted below. This is due to some of the inflation fears that are starting to brew, which in turn pulls the bond market down, and raises interest rates. The inflation fear comes from the stimulus packages, and what their overall costs may be down the road. However, the economy is still stumbling, so the bond market may still be the “safe haven” for investors as we move along day to day. So, rates are going to stay volatile for some time yet. That's actually a good thing! We just need to get the buyers buying.
Okay, a little clarification on the $8k tax credit from last week. The IRS has ruled that if the home was purchased in 2008 then the $7,500 tax credit, which has to be repaid over 15 years, will apply. If a first time homebuyer purchases their home on or after January 1 st of 2009, they can include the new $8k tax credit in the 2008 filing. If they have already filed their 2008 taxes they can amend that filing to receive the credit now instead of waiting until next year to file their 2009 taxes. Again, the $8k is an actual tax credit which does not have to be repaid if the buyer keeps their new home for at least 3 years. Contact me with any questions you or your buyers may have.
I'll once again be available over the weekend by cell phone. Please call if I can help you or your clients in any way.
Have a terrific weekend!
The following rates are based on 30 day locks with no discount points, as of this afternoon. They are not come ons, they are the rates your buyers will most likely get from a reputable lender, regardless of what is advertised. Certainly there are other specialized programs available, depending on the qualifications of the buyer.
30 year fixed conforming = |
5.250% |
|
15 year = |
4.875% |
|
3/1 ARM = |
4.875% |
|
5/1 ARM = |
4.875% |
|
Jumbo fixed = |
5.750% |
|
Jumbo ARM = |
4.800% |
|
FHA/VA 30 year fixed = |
5.500% |
|
Prime rate is currently = |
3.250% |
Authored by Lorin Wamsley, CMPS - Senior Mortgage Consultant, Precision Funding Phone: 541-681-8787
Dennis Pease - RE/MAX Integrity Real Estate Broker invites you to see more Eugene Real Estate information and search the Oregon Real Estate Listings. Phone: 541-844-9287
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Share26 Responses to "More Details $8,000 Home Buyer Tax Credit, IRS Filing Rules"
Hey Lou, glad you stopped by & I appreciate your help lately. Delicious & Stumbles help my friend. :)
Posted on Sunday, March 1st, 2009 at 11:51 AM.
It is the best time for the buyers to buy properties. So I feel that they won't miss such an opportunity.
Posted on Wednesday, March 4th, 2009 at 1:41 PM.
Thanks for the info. I would have liked to see the $15,000 tax credit looked at a little more closely as well, and maybe expanded to non first time homebuyers as well.
Posted on Sunday, March 8th, 2009 at 1:17 PM.
i think the 8k will help in the winter. I think the buyer will have a fear of loss at that point and we will have a bust winter this year
Posted on Wednesday, March 18th, 2009 at 12:09 PM.
[...] Details On The $8,000 Credit To Home Buyers
More Details $8,000 Home Buyer Tax Credit, IRS Filing Rules
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Posted on Monday, March 30th, 2009 at 12:49 AM.
I don't know what it is about your site/blog but every time I stop by here I just feel incredibly at home! ~LOL Seriously though, I don't think the government or NAR or Realtors in general are doing enough to get the word out to prospective buyers about the $8K tax credit. I understand that public awareness about it is actually quite low. I guess the news got buried in all of the talk about bailouts, stimulus plans and the budget. I wish there was flyer that was not state-specific that I could just blast out to all my clients and post on my Facebook and LinkedIn accounts. Maybe it would get picked up and passed around by other Realtors and consumers.
Posted on Friday, April 3rd, 2009 at 8:55 AM.
[...] Details On The $8,000 Credit To Home Buyers
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Posted on Saturday, April 4th, 2009 at 12:10 AM.
[...] Details On The $8,000 Credit To Home Buyers
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Posted on Friday, April 17th, 2009 at 11:54 PM.
I think what this really did was bring people to the buying side when they were on the fence in the first place. Must have been a ton of people on the fence because a TON of homes have sold recently. Go Housing Market!!
Posted on Tuesday, April 21st, 2009 at 2:28 PM.
1st time home buyer? My son and his wife at the time tried to purchase a home on a land contract a few years ago. They divorced and the house went back to the seller. They had no equity in the house and a deed was never recorded. If he buys a house now would it be considered a 1st time buy? Please respond.
Thank you,
Posted on Monday, June 1st, 2009 at 10:58 AM.
Hi Joe, The definition of a first time home buyer is someone that has not owned a home in the last 3 years. So the term itself "first time home buyer" is misleading.
Also in a Land Contract you are not a home owner per se. So yes, I would say your son would qualify as a first time home buyer. Let me know if I can be of more help.
Posted on Monday, June 1st, 2009 at 2:04 PM.
Hello! I have a question I cant seem to find the answer to anywhere. I have just recently gotten divorced and b/c of my ex have horrible credt. My parents however have 800+ credit score and are willing to help me get a home. I've heard the possibility that a land sales contract might work to still get the tax crdt. Essentially they buy the home and then sell it to me on contract. Would that work for either them or me to be able to claim the $8000 at tax time? thank you!!
Posted on Wednesday, June 3rd, 2009 at 3:09 PM.
Could I gift my 19 year old son the money to buy a condo...get him the credit? He will live in the condo after his lease expires in a year. What if he only made 3500 last year and is a college student? Thanks, Maureen
Posted on Wednesday, June 3rd, 2009 at 9:40 PM.
@ Monica & @Maureen, I'm going to have Lorin Wamsley jump in answer your questions.
Thanks,
Posted on Friday, June 5th, 2009 at 10:16 PM.
[...] Details On The $8,000 Credit To Home Buyers
More Details $8,000 Home Buyer Tax Credit, IRS Filing Rules
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Posted on Saturday, June 6th, 2009 at 12:22 AM.
Hi Monica,
To answer your question a land sales contract would qualify for the tax credit if the contract is recorded in county records. However, the tax credit is not available if you purchase a home from a relative. Also, I assume your parents are not first time home buyers, so they would not be eligible either.
Hi Maureen,
In answer to your question, as I understand it, you may gift your son the downpayment money to buy a condo. However, he will still have to qualify to make the monthly payments. Obviously $3500.00 per year is not going to work. Another way to do it would be to use a FHA loan which would allow you to also be on the loan with your son and use your income to help him qualify. Of course, you would also have to claim your current mortgage and any other liabilities and show enough income to pay all. Whether or not your son would be eligible for a partial tax credit (based on the percentage that he contributes) is a question for your CPA. Now, if you were saying that you would gift your son the entire amount to purchase the condo, then of course there would be no loan to qualify for and once again I would have you contact your CPA in regards to whether or not he would be eligible for the tax credit.
Posted on Sunday, June 7th, 2009 at 10:01 PM.
Dennis,
Can the home purchase be in joint names with one person eligable for the credit and the other not eligable? Perhaps an adult child and a parent?
Posted on Monday, June 8th, 2009 at 8:15 AM.
Hi Joe, again I'm going to defer lending questions to Lorin, since he is the author of these articles and the lender I would recommend to anyone to that has any Oregon mortgage needs.
Posted on Monday, June 8th, 2009 at 12:06 PM.
Unfortunately I can not edit my comments after they have posted, but you know what I meant. :)
Posted on Monday, June 8th, 2009 at 12:17 PM.
Hi Joe,
As in any government tax proposal, credit or otherwise, the IRS doe not finalize all their policies and guidelines for many months. So, how this will be handled is still up in the air at this point. But, as I understand it, at it's inception, one party on the purchase could be eligible as a first time homebuyer and another party may not, on the same purchase. In this case the party that is eligible could receive a "partial" tax credit based on his/her finacial participation in the purchase of the property. Again, as mentioned above in prior comments, this is a question for your CPA/account.
Posted on Monday, June 8th, 2009 at 12:34 PM.
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More Details $8,000 Home Buyer Tax Credit, IRS Filing Rules
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Posted on Saturday, June 13th, 2009 at 8:12 PM.
Thanks for providing more information on the IRS tax credit! The Tax Credit is simple, yet it is complex. I appreciate all the information I can get to share with my clients.
Posted on Wednesday, July 15th, 2009 at 9:15 PM.
Dennis:
Is a minor who is a taxpayer through a trust eligable for the credit.
Joe
Posted on Saturday, July 18th, 2009 at 11:01 AM.
Great question Joe,
My experience with minors is that legally you can not be bound by contracts which means most lenders will not lend to you. But, I would highly recommend that you speak to your accountant to make sure that is correct and how that would affect the tax credit for you.
Posted on Saturday, July 18th, 2009 at 11:43 AM.
First timers are buying a lot of lower priced homes in Austin, but higher price points are soft. Makes me wonder what will happen when the credit goes away.
Posted on Friday, July 31st, 2009 at 3:48 PM.
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Hey Dennis . . . just dropping by to check out your blog. Love your rendition of the popular tax credit post. How is it working for you? Love the image of the hat and the money.
Posted on Saturday, February 28th, 2009 at 11:29 PM.