Actual Refundable First Time Home Buyer Tax Credit In Stimulus Package

February 13th, 2009 • Related • Filed Under

For those who are interested, here is the wording of the Refundable First-time Home Buyer Credit as announced by Congress in a statement issued this morning.

Essentially it bumps up the level for first time home buyers to $8,000 and waives the repayment requirement.

You know how this set the real estate market on fire the first time it was offered.

Refundable First-time Home Buyer Credit.

Last year, Congress provided taxpayers with a refundable tax credit that was equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to $7,500) by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008 and before July 1, 2009. Taxpayers receiving this tax credit are currently required to repay any amount received under this provision back to the government over 15 years in equal installments, or, if earlier, when the home is sold. The credit phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return). The bill eliminates the repayment obligation for taxpayers that purchase homes after January 1, 2009, increases the maximum value of the credit to $8,000, and removes the prohibition on financing by mortgage revenue bonds, and extends the availability of the credit for homes purchased before December 1, 2009. The provision would retain the credit recapture if the house is sold within three years of purchase.

The full taxpayer provisions in PDF form.

Hat tip to Doug Quance (via twitter @dougquance)

There Are 169 Responses So Far. »

Comment by New Owner on 13 February 2009:

So since I purchased a home in May of 2008, I get screwed?

It seems if they do this, they should make it retro-active.
Comment by Another New Owner on 13 February 2009:

Hey don’t feel too bad, we closed 12/31/08…
Comment by Steven on 14 February 2009:

So what happens for those of us who purchased a home in 2009 but took the option to claim the credit on our 2008 return?
Comment by Dennis on 14 February 2009:

You have to wait and see all the details, but worse case, file an amended return for 2008.
Comment by DTB on 14 February 2009:

This is awesome!!! I closed on 11/24/08….screwed too
Comment by jk on 14 February 2009:

Is there something we could do? Government stuff is always changing maybe there is still hope.
Comment by jim on 14 February 2009:

How did you get screwed? You wont get as good of a deal as people that are buying a home this year but you still got a $7500 intrest free loan. Yes its not as good as getting $8000 and not having to pay it back, but its still more then anyone got who bought a home in 2007 or befor that. How far should they make this credit go back, 2007, 2006, 2005, 2004, 2003,………? I feel for you but stop saying you got screwed, you got lucky to get an intrest free loan of $7500!
Comment by Jolynne on 14 February 2009:

Here is a detail of the terms for the 2009 First Time Home Buyer Tax Credit of $8K as approve by both houses. It is important to note that it is not retroactive to 2008 version and does not modify the original terms for the $7,500. tax credit. While the 2008 $7,500. tax credit still remains repayable, the new 2009 version is not! Big difference. It also expires on Dec. 31, 2009.

http://tinyurl.com/dmuwlm
Comment by V on 14 February 2009:

If there is no repayment requirement, is this free money ? Not a loan ? Soundss too good unless I misread it. Can someone clarify…

Thanks
Comment by Leann on 14 February 2009:

I read somewhere that the tax credit is up to 10% (8,000) for joint filers and just 5% (4,000) for for single filers. But I’ve only read it once place and can’t find any other documentation to support that claim. Is there any truth to it?
Comment by Cole on 14 February 2009:

I know someone who yelled at their home builder, who moved their closing date back past 12/31/08 to a date in 09, that they wanted to close on 12/31/08 and not a day after and made a huge scene about it on 12/30/08 and now look they have the pay their $7500 back while others get $8000 for free…Karma is a b****, glad Im patient and still looking.
Comment by Erin Samples on 14 February 2009:

It’s a real slap in the face to those who took the leap in 2008 and bought a house for the first time. 2008 was not much better than 2009… the difference of having to pay back the $7500. over receiving $8000. for free – is absolute nonsense. I am fine with the repayment program not with “free money”. Nothing is ever “free”. The rest of us not benefiting from the new program will be sure to pay for this.
Comment by lurker on 15 February 2009:

I am not sure if the summary above were actually correct.I have read the bill (the version that has not been signed by the white house yet). It only extended the date from july 1,2009 to dec 1, 2009 as the cut off date, and increase the credit from &7500 to &8000. These changes are the amendment to the last year legislated bill, which means the effective date as April 8, 2008 should still be valid.
Comment by Eileen on 15 February 2009:

It really IS a huge slap in the face to those of us who went out on a limb and purchased in 2008. We need to repay our credit but those purchasing in 2009 do not!!!! I think an intereste free loan for all is a benefit alone – this country can not afford to hand out $8000 to everyone who buys a house!! You can bet my senators and Mr. President will be hearing my opinion on this.
Comment by under contract on 15 February 2009:

I am currently buying a home. Will I be able to apply the credit to my 2008 taxes and get the permanent (vs. loan) credit? It seems like the only reason to apply it to my 2009 taxes would be to get the potential $8000 credit. The house is under 100K, so that wouldn’t effect me.
Comment by Marilyn on 15 February 2009:

My daughter pays a small amount of income tax because she is a student and works part time. If she buys an inexpensive house would she not get any advantage because this is an income tax credit?
Comment by Sharp on 15 February 2009:

For those who get either credit be happy that you get one. I am a single parent with 3 children and I purchased my home March 30th, 2008. I don’t get any credit and it took me several years to save to buy the home. I would love to have a intrest free load to help pay off a few bills and save for anything that comes up with the home. For everyone who gets the credit which ever way stop complaining. Remeber there are many american’s who bought homes and don’t get any extra help they just didn’t know that it would have benefited them to wait a little bit.
Comment by Kim on 15 February 2009:

Marilyn – the credit is refundable. This means that if your tax liability is less than the amount of the credit, you get the difference in cash when you file your tax return.
Comment by Alex on 15 February 2009:

Everyone who is complaining because they are not receiving the $8000 tax credit for buying their home last year is missing a major point. Home prices are still plummeting and there are tons of houses on the market. The government is offering this incentive to reduce inventory and get folks buying. If it works, falling home prices will bottom out, and your home won’t continue to depreciate as it currently is. So you should be thankful. House prices would need to fall another 15% or so to reach pre-bubble levels (adjusted for inflation). So would you rather not get $8000 because of bad timing, or would you rather your new home lose $20,000 in its value this year?
Comment by Soon to be Engagedq on 16 February 2009:

My girlfriend and I took the plunge of buying a house in Aug of 2008. With my portion of the $7500, I plan on buying the engagement ring. Even if we are paying it back, its good to know that she, knowingly or not, will be paying on the ring in some portion or another for 15 years.
Comment by Pietro on 16 February 2009:

I could be misunderstanding the parameters, but it sounds as if people making 75K and over, are considered “too wealthy” to be included…which is effectively discriminating against those that live in more expensive regions, such as the northeast. Here in NY/NJ/CT, it is hard to even qualify to get a mortgage on a house unless one makes more than that. Not all people who live in such regions are “wealthy”, and this does not help them at all. Same goes for the education credits. I have many friends that make just over 100K, [many single and with at least one child and also staring at a huge college expense] that still can only afford to rent.
Unless they start changing the laws to help ALL taxpayers in ALL parts of the country, these types of “stimuli” will not have the intended effect, I fear.
Not to mention the AMT “patch” that STILL does not help these same people!
Comment by jp on 16 February 2009:

closed end of Sept., screwed/shafted by this as well. whats crazy is basically the deal we went for was originally to last for a full year into this summer, now they basically just ended it with 2008 and awarded free money to those who bought in 2009, this sucks. Democrats love to pick winners and losers.

We should all call our congressmen and try to get our’s retroactive so we don’t have to repay, jeez
Comment by jp on 16 February 2009:

those that bought at end of last year and have to repay the 7500 are also screwed when you factor in that had you waited till now to buy the house would probably be even cheaper than when we bought at end of 2008. Democrats gave us the finger
Comment by Kasey on 16 February 2009:

My home is closing 2/19/09. I want to file my taxes ASAP and take advantage of the $7500 “loan” as I have so many expenses now with a new home. On the other hand, I do not want to miss out on the “free” $8000. If I take the money now……will I be screwed out of the better deal?
Comment by Kim on 16 February 2009:

Try closing on April 8th like I did. Sucky.
Comment by Rynamite on 17 February 2009:

I closed on my first house on 2/5/09. I just got my W2 and Turbo tax the other day, so I guess I’ll hold off filing until this is signed by Obama (scheduled to do so today). Does anyone know what form I’ll need in order to take advantage of this?
Comment by Melinda on 17 February 2009:

OK, simple question, can you take both credits? I am closing around the 27th of February, and am afraid to even guess that I may. My husband and I lost all of our belongings and this money would be a wonderful way to move in, make the improvements we want to make as well as buy the furniture we will be needing for our home. Does anyone know? I would appreciate any input. I’m thankful for either, but would be SO excited about both!!! Thanks!
Comment by Money on 17 February 2009:

Too Close. We closed on our house March 27, 2008. 11 days short of having some extra money to pay off all of our small debt that make everything else tuff to pay for the month. where did they come up with April 8th. It sure would have been nice.
Comment by LACE on 17 February 2009:

I was pretty pissed to learn that I would have to repay the credit since I bought in the summer 2008 and those who waited till 09 did not. However after reading the comments from people who closed in March of 08 who get nothing, not interest free loan or free money. I will count my blessings and stop complaing…
Comment by DennisO on 17 February 2009:

@Rynamite

Sadly, You are out of luck…The home purchase must take place AFTER the bill has been signed into law.
Comment by Jason on 17 February 2009:

Or hey, those who bought in 2008 may lose 30k instead of 20k, but hey, we should be happy for you guys buying in 2009 right? i mean, losing an extra 10k and not getting 8k in free money isn’t big right?
————————
Everyone who is complaining because they are not receiving the $8000 tax credit for buying their home last year is missing a major point. Home prices are still plummeting and there are tons of houses on the market. The government is offering this incentive to reduce inventory and get folks buying. If it works, falling home prices will bottom out, and your home won’t continue to depreciate as it currently is. So you should be thankful. House prices would need to fall another 15% or so to reach pre-bubble levels (adjusted for inflation). So would you rather not get $8000 because of bad timing, or would you rather your new home lose $20,000 in its value this year?
Comment by Single Mom on 17 February 2009:

I’m a Single Mom of 1. I closed on March 26, 2008 and I get no credit. Stop complaining!!!
Comment by Carl on 17 February 2009:

Here’s one problem I’ve found. The house I’m getting ready to buy apprised for $255,000 the tax assessment from 2007 is $297,000, so even if I get the $8,000 it will just go back to the state to make up the difference in what I will be paying and what I should be paying.
Comment by Stacy on 17 February 2009:

Rynamite… why would you wait to file? You bought a house in 2009. Therefore you won’t get your tax credit back on your 2008 taxes… you didn’t buy a house during the 2008 tax season….
Comment by Rich on 17 February 2009:

I sold my primary residence in June 2006 and have been renting in the meantime. I currently have a tentative closing date on a new primary residence in March 2009. Will I be eligible for the tax credit since technically I am a few months shy of the 3 year requirement? Or is it calculated by tax return years, example I did not sell a prior residence on the 2007 2008 and 2009 future return where I would be claiming the credit.

Thanks
Comment by Chris on 17 February 2009:

I closed on my house in March of 2008, so I don’t get any credit? Because it seems to get at least the $7500, you had to buy your house on or after April 8th, 2008. This stinks….
Comment by Drew on 17 February 2009:

In response to many questions…

1. Double-dipping – NO, you will not be able to get BOTH credits or $7500 and the $8000. The $8000 will be replacing the $7500.

2. The “first-time homebuyers” and “3-year” clause is on the table to be removed. Therefore, anyone buying in 2009 will receive the $8000 tax credit.

3. Date of Closing – it doesn’t matter when you close. You don’t have to close AFTER the bill is signed. When you file your 2008 tax return in ‘09, as long as you purchased your home after 1/1/09 and before 12/31/09 you will receive the tax credit.

4. Tax Credit – a tax credit is a tax credit regardless of your income (unless you’re OVER the maximum amounts of $75,000 single and $150,000 joint). You will receive your portion of the tax credit based on the house you buy.

My only questions are when does this get signed, or not, and what site should I be paying attention to??
Comment by Drew on 17 February 2009:

I recant a couple of things (written out of haste)…

1. I believe the cutoff date for buying in 2009 and receiving a tax credit is November 30th. Please correct me if I’m wrong, but cite your resource.

2. The “first-time homebuyers” and “3-year” clause is only ON THE TABLE to be removed. It was still in the bill last known.

Sorry for the confusion…
Comment by Drew on 17 February 2009:

You can ALSO file an ammendment to your 2008 tax returns, says money.cnn. And filing is easy; just put in on your tax forms without an extra form needed.
Comment by Cindy Girl on 17 February 2009:

Rich – it appears that you have to wait until June 2009 (3 years since you owned a main home) to close on your new home in order to qualify for the credit. Sorry.
Comment by Purchased 12/08 on 17 February 2009:

I’m really upset about this new turn of events. I purchased and closed in December 2008 and am just finding about this new and improved tax credit. Basically I’m out an additional $500 AND have to REPAY $7500. Totally unfair to those who were so close to the 1/1/2009 cutoff. They really need to reconsider extending this nice new incentive to those who qualified for the $7500 loan.
Comment by Juan Flores on 18 February 2009:

I have read your comments and it appears there is some confusion regardi9ng the pre-existing tax credit of $7500, the approved economic stimulus has a prevision to also eliminate the repayment requirement for those properties purchased in 2008. The only difference is that if you purchased your home after January 1st, 2009, you are now entitled to $8000. See article written on the Wall Street Journel, I have copied the portion that outlines this below:

First-time buyers get $8,000 tax credit in stimulus bill

First-time home buyer tax credit details reported today in a Wall St. Journal article:

ObamaHome buyers who hoped for a $15,000 tax credit to buy a new home, as promised by the Senate, will be disappointed. A proposed $35 billion credit to support home sales was jettisoned in favor of a more modest $2 billion to $3 billion provision.

The proposal would eliminate the repayment requirement in an existing tax credit for first-time home buyers, and raise the credit to $8,000 from $7,500. Congressional aides cautioned Wednesday that the credit’s size was still subject to negotiation.

– Lauren Beale
Comment by Christina on 18 February 2009:

BLUF: QUIT WHINING!!!

I’m right up there with all the other who bought my house in March of 2008. I closed on my house March 31st…just one more week. All of you whiners out there need to shut up and realize that it could be worse. I missed out on that tax credit which could have helped prevent me from having to pay Alot in taxes this year but that is life.
Comment by Chris on 18 February 2009:

what date do they use for someone who has built a home? is it the first date of occupancy?
Comment by Pip on 18 February 2009:

Ugh, why is not agreeing with crappy laws whining? For crying out loud, this country needs more “whiners” than it needs idiots that just lay back and accept everything.

The original version of this bill was just plain screwed up. It should have been for all of 2008 instead of starting in mid-April. That was Congress being lazy and dense. Because people didn’t “whine” back then, Congress went ahead and made it even worse in 2009.

It now appears that they’ve gone and modified half of the original bill. If you bought your house in 2008, you pay back every penny of your tax credit. In 2009, it’s free money for you, at the expense of every tax payer. That is what is complete bunk, and SHOULD be “whined” about.

There was nothing wrong with the original bill’s terms besides its date range. Giving people $7500 interest free, to be paid back over 15 years, one payment a year out of your tax return was a great plan. The idea was to convince RESPONSIBLE people that have been saving up their money to buy a house to go ahead and make that purchase, to not be scared off by the failing economy. Anyone that thought this was a bad deal is certifiably slow in the friggen head.

Now, congress has gone and given everyone that took advantage of the credit last year a big middle finger. You have to pay back your loan, and guess what… that money you are paying back… we’re going to go over here and give it to these people free of charge. That is 100% insulting. It rewards the people still clinging to their money instead of buying that house… and it encourages people to go out and try and buy a house they probably cannot afford, which is part of what caused this mess to begin with.

The First Time Home Buyer Tax Credit should have been left alone. At the MOST, it should have been extended to the beginning of 2008 until the end of 2009. People taking the credit, getting the money, are going to be spending that money fixing their house or buying furnishings. ALL THINGS THAT STIMULATE THE ECONOMY. The more people that get it the better! Instead of that, we get this mess from Congress, that won’t do any more house buying stimulation than the previous bill did… because most people already jumped on that shark last year.

And one last point. Yes, it seems unfair that the credit phases out if you individually make more than $75,000 a year. In some areas of the country this is the average, and houses are priced much higher. However, the cost of living argument doesn’t hold water for everything. Food doesn’t cost 5 times what it does elsewhere in the country, and neither do televisions, computers, phones, cars, medicine, water and power, etc…. You make more yes, and true that houses cost more… but you get a big break when it comes to buying daily essentials. Someone in a rural area, that makes $30,000 a year pays the same amount for their food that you do, and their house costs less to buy, and yet they still cannot afford a flat screen tv and drive an old beat up car. This is why the credit phases out for you if you make $75,000.
Comment by Pip on 18 February 2009:

Oh, and in case there is any doubt whatsoever… here you go. The $7500 has to be repaid.

http://dc.urbanturf.com/articles/blog/does_the_original_7500_tax_credit_still_have_to_be_repaid/550
Comment by SC on 19 February 2009:

I dont get why people say that they are screwed because they took the $7500 credit in 2008 that has to be repaid and now people who buy in 2009 gets $8000 that doesnt have to be repaid. You all are not screwed, yes $500 is addded every year for 15 years to the amount of taxes you owe but will you really miss that $500? Compared to what you probably recieved from IRS before you brought a house, Im sure most will still recieve a huge check from IRS every year just for being a homeowner. I wont close on my house till April 2009 but hell I would have been ok with taking the $7500 repayable credit because I know that buying a house will get me back more money then I get now and I wouldnt have notice the $500.
Comment by Gunzby on 19 February 2009:

I actually got lucky. It took the bank forever and a day to put my mortgage through. Had it been done in a few weeks after starting I would have lost out on the 08′ credit. For some reason I had to jump through flaming hoops for this one and I have an above 700 credit score.

Even my insurance agent said he had never gone through that much trouble for a closing. Of course he also said that quite a few houses he insured he said they should have never gone through which is why we are in this mess.

I certainly won’t whine if I have to pay it back because we still haven’t been able to sell the house we moved out of so this will help me out now…..which coincidentally is when I need help.
Comment by Pip on 19 February 2009:

“I dont get why people say that they are screwed because they took the $7500 credit in 2008 that has to be repaid and now people who buy in 2009 gets $8000 that doesnt have to be repaid.”

Seriously? Really, seriously, you don’t understand? That’s just amazing. You seriously need to work on your concept of ownership and your forward thinking skills. The serious lack of forward thinking and financial planning by altogether too many Americans was a major factor in the downward spiral homeowners find themselves in today.

If people cannot comprehend the difference between a loan and a cash gift, then I don’t know what to say. Honestly this just shows why people bought so many houses they couldn’t afford. They have no concept of money, how to save, or how to invest… of what is theirs and what is being loaned to them. Until this changes, the foreclosures, the bankruptcies, the massive credit card debts… none of it will get any better. Quite frankly, Americans have to get smarter with their money first.

Hey, how about just mailing me $500 a year, since you wont’ miss it. Don’t laugh at that, it is why scams are so successful in this country too. People actually do this.

The first version of this credit was a really good deal, but too many so called experts with more money than brains downplayed it due to the fact it had to be repaid. The government shouldn’t be in the business of paying people to buy houses, so the repayment stipulation was fine as it was. Now that’s gone, so now yours, mine, the guy down the street… everone’s tax money is paying people to buy houses. That never should have happened. Beyond being an insult to every taxpayer, it’s an even bigger insult to those that used the credit last year. This isn’t a new credit, they just modified the old one, and they purposefully excluded a lot of their constituents with no regard whatsoever for them.

Seriously, if any of you were standing in line for a baseball game and bought your tickets, then they announced “Everyone after this guy gets in free for the rest of the day”. Honestly, you’re telling me you’d be all smiles and happy thoughts. I think not.
Comment by Mavrck on 19 February 2009:

I think it’s crap on this plan. What does this plan do for existing home buyers??? I now have 3 kids and need a bigger house. The old recommendation of $15,000 would have worked great but now they signed the $8,000 credit instead again for FIRST TIME HOMEBUYERS! What about the people that need bigger homes for bigger families?? How is this going to stimulate the economy? What BS.
Comment by kathleen on 19 February 2009:

I signed a contract to buy a new home in Aug 08. The house is under construction and almost complete, so closing scheduled for Mar 09. Under the former guidelines, I could take the $7,500 credit on my 08 tax return, or wait & take it on my 09 return. That was fine, even with the payback provision. Now I have 2 questions: 1) under the new guidelines, am I considered to have bought the house in Aug 08 when I signed the contract, or in Mar 09 when I close?, and 2)if it’s based on the closing date in 09, entitling me to the new $8,000 credit, can I take that credit when I file my 08 taxes, or do I have to wait until I file my 09 taxes? I’d love to hear from anyone who has the definitive answer.
Comment by Mavrck on 19 February 2009:

Its based on closing date so you should be able to get the $8,000 credit.
Comment by kathleen on 19 February 2009:

Can I take the $8,000 credit on my 2008 tax return?
Comment by Betsy on 19 February 2009:

Hey all 2008 buyers! I understand that there has to be a cutoff somewhere but why in the world they would not keep the original date is way beyond me. I’m wondering if we could somehow work together to change this! Individual complaints probably would not be that effective! What could we do?
Comment by Katie the teacher on 19 February 2009:

I am grateful for the credit I will be receiving on the house I am purchasing this year. Everyone who is complaining knows that if they were receiving the credit they would’nt think anything was wrong with it. Just be glad that it allows people to buy your houses that have been sitting on the market far too long……. Happy Buying!!!
Comment by Bmuelle on 20 February 2009:

Will the new $8,000.00 credit still require that you cannot purchase the home from a relative?
Comment by Mavrck on 20 February 2009:

Kathleen. You can’t claim it until you do your 2009 taxes.
Comment by Bonnie on 20 February 2009:

It’s so sad to listen to everyone whine. What about people who bought thier home 2 years ago at inflated prices and high interest rates. They are either losing their homes, or owe more than the value of their homes. Their credit is messed up and they can’t qualify to buy a new home. Stop your whining and take be happy you are getting anything!!
Comment by Craig on 20 February 2009:

i closed on december 16th 2008 . . .I have already contacted my senetor, you should as well. . . lets get them to change the law…
Comment by Dallas on 20 February 2009:

FOR ALL THOSE WHO GOT ARE GETTING THE SHAFT FROM BUYING IN 2008 JUST LIKE MYSELF. ***TELL YOUR CONGRESSMAN***
Comment by Terrie on 20 February 2009:

I signed my contract on 02/2/09 I close on 03/18/09. I want to file my taxes 03/1/09 can I recieve the tax credit?
Comment by Thomasina on 21 February 2009:

Yea. I tell ya.Onion rings can’t solve this! I’m of those folks that closed so closed, yet too faraway. Me: St. Patrick’s Day 2008. The kicker is the April 8 date the $7500 tax credit starts? Is my birthday! And I re-financed in September 2008. That doesn’t count either? The thing should be re-tro’d back to January 2008. I love my birthday–heck, I think it should be a national holiday–but, this tax credit thing-needs to be fair. Maybe onion rings would help.
Comment by Zack on 22 February 2009:

I Am very close also…Closed on April 1st 2008 on my first home. Do I qualify for anything? The interest free loan credit would be better than nothing right now. Is there any way I would get any $$?
Comment by Alex on 22 February 2009:

Wow. Everyone is really bitter about not getting free money. Maybe the government should give everyone who bought a house in 2008 the full $8000, and let it be all buyers instead of just first-timers… I mean, that would only be like $40 billion, no big deal. And since all the people who bought in 2004 through 2007 will feel doubly screwed because they’ve lost the most, let’s just go ahead and give them $8000 so they don’t feel “screwed” or “unlucky.” So now we’re up to $250 billion. But at least everyone would stop whining.

Look… the goal of the credit is to make home prices bottom out. For everyone who is complaining about buying in 2008, it’s obvious the first credit didn’t do that, so I’m shocked you actually follow this stuff and didn’t know greater incentives would be coming in 2009. Every realtor and broker saw it as a strong possibility. You should have waited!
Comment by Nick on 22 February 2009:

I closed in May 2008, and couldn’t get the 7,500.–Because my mortage was financed by mortage revenue bonds which was an exclusion in the 2008 tax credit — this has been amended for the 2009 tax credit. Wish I could get some info on why the MRBs were originally excluded in the first place, and now amended– but havent had any luck.
Comment by kaye lewis on 22 February 2009:

my husband and I have been trying to get a house for 6 months.
we were just on the verge of signing the final papers when my husband came home and told me he got laid off. i went into full blown panic attack and had to be rushed to the er because i stopped breathing and my blood pressure skyrocketed to stroke level. i thought we had lost our downpayment the chance at the home of our dreams, that we had saved and worked and sacrificed for . thank god in heaven our bank said they would just put everything on hold till my husband got a new job and could show 30 days of income and proceed from there and the company we are buying the house from said with our downpayment already made it was on hold also. we now live a 900 sq ft apt that the floors are rotted and theres mold in one room we fight on a dailey basis to keep clean. now how screwed do all you babies feel. i thank god im not under a bridge somewhere at this point. shut up!
Comment by kaye lewis on 22 February 2009:

and if the wealthy would pay their taxes we the working class b citizens who dont own jets etc wouldnt have to cover them. now im done…
Comment by Gail on 22 February 2009:

Thanks for all the great information here. I still had some questions around the tasx credit, particularly for joint situations and per this article I think I found the answers. Hopefully it helps the others here: http://www.savingtoinvest.com/2009/02/15000-first-home-buyer-tax-credit-in.html

- If you and your spouse claim the credit on a joint return, each spouse is treated as having been allowed half of the credit for purposes of repaying the credit.

- If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount allocated cannot exceed the smaller of $7,500 ($8,000 if you purchased your home in 2009) or 10% of the purchase price. Note: A reasonable method is any method that does not allocate all or a part of the credit to a co-owner who is not eligible to claim that part of the credit (I would go with 50/50 as a reasonable method if one person is not eligible for the credit)
Comment by hlang on 23 February 2009:

Wow, this site has the biggest lot of whiners I’ve seen in a long while. The people saying “babies and whiners” are who I’m addressing here.

“kaye lewis” – What does your post have to do with anything? Are you on crack? Yes, you have some problems, but hey guess what, there are people starving in Africa, homeless in the streets of New York City, millions of people dying of AIDS. There are a lot of people worldwide with a lot of problems. This isn’t a contest, it’s people discussing the stimulus package, changes to a tax credit, and it’s effects to the taxpayer. Your comment is 100% irrelevant.

And for every other person that likes this following argument… let me copy a few from above for effect:

“Alex” says “And since all the people who bought in 2004 through 2007 will feel doubly screwed because they’ve lost the most”

AND

“Mavrck” says “What about people who bought thier home 2 years ago at inflated prices and high interest rates. They are either losing their homes, or owe more than the value of their homes.”

Here’s a novel idea for you people: read the news. The stimulus bill that was signed has billions of dollars in aid to everyone that purchased an overpriced house they couldn’t afford with an outrageous interest rate and no money down. The taxpayer is paying for everyone’s bad decisions in the past, and is paying people to buy houses this year as well.

Now if you saved up, and bought a house last year, didn’t overspend, got a decent mortgage. You know, did everything right… you get to pay for the mistakes everyone else has made.

THAT’S THE COMPLAINT. People that took the credit last year do not want to be paying for people to buy houses this year, or paying for everyone that made mistakes in the past. Since the credit last year was a loan, that is where the money they repay to the government is going to go. If joe homeowner screwed up in the past, it’s free money for him. If joe homeowner buys a house in 2009, it’s free money for him too. Did it all right in 2008, well you get a loan bud. This may be what is best to stimulate the economy… but it is 100% unfair. There is no argument to be made in it’s defense, so thick skulled simpletons resort to the only argument they can make. It’s sad, and laughable, so unless you have some wondrous new insight, give it a rest.
Comment by Charles on 23 February 2009:

http://www.irs.gov/pub/irs-pdf/f5405.pdf

The 2008 version IRS Form 5405 which is for the tax credit defines who is and isn’t a first-time buyer, at least for last year.
Comment by Jo on 24 February 2009:

I don’t get it? I just filed my taxes and did not see any 8000 or 7500 dollars either? I bought my primary residence in Nov 08 and haven’t been a home owner since Nov 06. Do I aply or not? Are they removing the 3 year clause or not? This is too confusing. I wish Turbotax would even mention that there was a 08 incentive!
Comment by DaveS on 24 February 2009:

Turbotax does mention it. It very clearly asks you if you purchased a home in 2008 and guides your appropriately.
Comment by Lee on 24 February 2009:

Please STOP complaining and be THANKFUL for your blessing (all of you receiving any type of tax loan $7500 or tax credit $8000). My husband and I closed on our home on Jan. 31, 2008. We do not qualify for either tax loan or credit. We saved for 8 years to purchase our first home. We were patient, we were thrifty, we were honest with ourselves and purchased a home that we could afford.
I know that it sucks that some people will be entitled to $8000 in free money. While others of you are going to have to repay $7500. But your situation could be worse, you could be like us and qualify for nothing.
Comment by KJG on 24 February 2009:

We purchased are home in June of 2008 and can’t take this credit due to us financing the home through mortgage revenue bond financing but people who buy a home in 2009 this way can claim the credit which is unfair. We should be able to claim the credit also. I have no problem paying it back but just think its not fair that we can not claim the credit but someone who waits to this year can even though they finance through a mortgage revenue bond program.
Comment by @ KJG on 25 February 2009:

KJG, maybe you were stupid to buy a house at that time. And you probably paid a lot more of what it is worth now! Good luck.
Comment by pip on 25 February 2009:

Ugh, for crying out loud.

To commenter Lee, maybe you should have told your representatives that the tax credit should have been for all of 2008, and that they needed to modify it in that way, instead of making the changes they did. My argument all along has been that the only flaw in the original credit was that it should have encompassed all of 2008 and 2009.

Instead of telling people to stop complaining, you should have done some of your own. You obviously feel slighted, since you’re bringing it up here.

You have to speak up if you want to be heard. That’s what people are doing now, they are speaking up, they are contacting their representatives and telling them what they think. They are posting online encouraging others to do the same.

Telling people to lie back and take it, just because you were screwed too, accomplishes absolutely nothing. My advice? You should get upset, you should write some letters, and you should make some phone calls. At least you can say you did something other than to tell others to be quiet for no other reason than it makes you feel better about being complacent.
Comment by MJ on 25 February 2009:

*LIFE* is unfair.
Does a person who bought in 2000 “deserve” to have seen their home equity shoot up at an obscene rate?
Does a person who bought in 2006/2007 “deserve” to have overpaid at the peak because everyone told them “real estate always goes up?”
Does a person who rented because they recognized the housing bubble as a bubble “deserve” to pay more in taxes to bail out those who bought at another time?
Does a homeowner who bought in “normal” times in the 1990s “deserve” to have their home value drop when their neighbor gets foreclosed on?
Does a college graduate in 2009 “deserve” an economy where it will be a lot tougher for them to find a job than possibly it was for a high school grad in 2005?
Did my dad “deserve” to live through the Depression? Did my mom “deserve” to be born after it?

Simply put: a lot of people (heck, maybe even almost all) are getting things (either good or bad) that they don’t “deserve” due simply to timing. Talking about what people “deserve” doesn’t get us anywhere. The real questions are:
1) does a policy do more harm than good?
2) are there any policies that can be changed for the better?
3) are there any actions individuals can take to better their situations?
Comment by sjg on 25 February 2009:

ha ha ha
I am really happy that some of you missed out on the tax credit. Really! i truly am.

Eventhough I personally would have qualified for the 8000 credit if not for the income restriction had I known that a future govt will pass a bill like this which benefits me personally, I would not vote for it.

For all those who got the 7500 and missed out on the 8000 and those who just missed the 7500 and are complaining about it because its less money to buy furniture and big screen TVs you all need to be arrested, your houses possessed and need to get daily lashings with a whip. The sense of entitlement some people in america have is outrageous.
Comment by sean on 26 February 2009:

To Those of you whos saying that people shouldnt be complaining and should be thankful for getting 7,500 interest free loan, why shouldnt we complain? Some people are getting 8000 free money and no need to pay it back and yet i have to pay my loan back. Its unfair and those who dont qualify for anything, be thankful, you wont get in debt, you wont have to pay anything back and you dont have to worry. I personally will not take this loan as i dont want to worry about paying it back for the next 15 years, i dont want them to take 500 out of my income tax every year. Of course i am unhappy, im getting a “LOAN” when i could be getting the money for FREE. Get the difference?
Comment by rena on 26 February 2009:

I have more of a question. Does either the $7500 repayable credit or $8000 refundable credit apply in regards to a re-modified home acquisition loan. I orginally purchased my home in Aug of 2005. Just did a loan modification which generated an entire new loan insturment with new different terms. Would this potentially qualify for either?
Comment by Andrew on 26 February 2009:

It says you must purchase by 12/1/2009. Does that mean you must have settlement by than? or just finish all the paperwork? They dont seem to clarify it anywhere. And this was probably answered above but just to make sure it is a 100% credit correct? Not a credit as long as you have 7500 tax liability? Thanks Andrew.
Comment by Gina on 28 February 2009:

Answers to most questions posted here can be found answered directly from the source that matters, the IRS. Go to IRS Website and download form 5405, revised February 2009. It clearly states and clarifies a few misunderstanding posted on this website.

The main clarification being that you can claim the credit on your 2008 tax return for a home purchased after December 31, 2008. You don’t have to wait until you file 09 taxes as some have incorrectly stated on this site.

Now here is a question I have… a friend of a friend said her taxpreparer got her the refund before she actually closed on her purchase. She was just looking for a house, didn’t have the downpayment to close, told her tax lady and she got her the refund. She now had the money for downpayment, any thoughts? anyone heard of that happening? Not sure how, but sounds a bit weird. Nowhere do I read that you can claim the credit without actually closing?
Comment by Kim on 1 March 2009:

I sold my main home in May 2006. I have been renting until February 2009, when I purchased my new home. Does anyone know if that makes me ineligible for the credit? Do they go by actual dates or the year?
Comment by Curious on 2 March 2009:

So what if I am in the process of buying and the close date in not until 03/19/2009 and I want to file my taxes already. Can I use the close date as the date I purchased?

Just Curious
Comment by Andy on 2 March 2009:

To everyone crying about the credit, getting screwed is closing 12/07/07 and not getting a damn thing.
Comment by pip on 2 March 2009:

To quote sjg

“ha ha ha
I am really happy that some of you missed out on the tax credit. Really! i truly am.

Eventhough I personally would have qualified for the 8000 credit if not for the income restriction had I known that a future govt will pass a bill like this which benefits me personally, I would not vote for it.

For all those who got the 7500 and missed out on the 8000 and those who just missed the 7500 and are complaining about it because its less money to buy furniture and big screen TVs you all need to be arrested, your houses possessed and need to get daily lashings with a whip. The sense of entitlement some people in america have is outrageous.”

Oh, I SO cannot wait until Obama jacks up the income tax on people such as yourself. Then I’ll find you crying a sad song about how it’s “unfair” you’re paying so much in taxes. Cry me a river.
Comment by america on 5 March 2009:

Rather than do what must be done to make sure our country maintains it’s ability to be a world leader, it seems now that people now are only worried about themselves. It is this greed that has placed us in the mess that we find ourselves in now. Nothing in life is free, the $8000 credit for 2009 new home buyers is only a small portion of the massive recovery act passed by the current administration. We will all pay much more than $8000 for the massive debt the country is incurring due to idiotic leadership in washington over the last few decades. Perhaps when the GDP of China far outpaces the USA, then some of you in this forum will understand.
Comment by Concerned on 8 March 2009:

I am in the same boat as most here, I bought my home on 12/15. I think what most people are missing, is this is not us being greedy and asking for more money, we are just asking for the same terms applied to everyone in the new year. Here is another thing to think about, the original bill under the Bush administration was to allow a 7,500 tax credit from april 08 to july 09. Then President Obama amends the previous bill to allow for 8,000 tex credit and extends it to december 09. Well if you are going to amend a bill, why wouldn’t you amend the entire bill? As president you unfortunately have the responsibility to clean up after the previous administration, and you can’t say I am going to sweep this half of the room and leave the other have dirty.

This is not me being greedy and trust I will be paying my interest free loan back, but I fail to understand the logic behind this decision. I was originally concerned that I was the only one that felt this way, I was obviously wrong and am joined by a large group of 2008 First Time Home Buyers.
Comment by pip on 9 March 2009:

“Well if you are going to amend a bill, why wouldn’t you amend the entire bill? As president you unfortunately have the responsibility to clean up after the previous administration, and you can’t say I am going to sweep this half of the room and leave the other have dirty.”

Very well said, and exactly my opinion as well, but it falls on deaf ears. The naysayers will call you names no matter what, and tell you to shut up and take it.

When it comes down to it, nobody really cares about this issue except people affected by it. Your fellow homeowner doesn’t see a difference between a loan and a gift… nor does he care. He just sees something you got that he didn’t, and he’ll yell at you for being upset.

Congress and the President do not care. With the trillions in handouts they’ve allotted, they decided that every first time home buyer last year wasn’t worth considering. Banks failing, stocks plummeting, corporate greed and theft run rampant, mismanaged companies failing left and right, home buyers taking out enormous loans on houses they cannot afford…. ALL of these people generated their own problems, and are getting bailouts from the government. They did everything wrong, and get rewarded.

If you saved up last year, and bought your first house, and can make your payments. You did everything right. You helped the economy. And nobody cares what you think now.
Comment by Darlene on 9 March 2009:

For all 2008 homebuyers who have to REPAY the $7500 tax credit…….PLEASE write AND call your senators and congressmen!!! Nothing will get changed until we all do this. There is still time to make this retroactive. WRITE NOW!!!
Comment by Darlene on 9 March 2009:

And if you don’t get an individualized response (instead of a canned answer)…..follow-up, again and again!!
Comment by Mike on 9 March 2009:

I am considering a few thoughts for those who want to be equal. $7,500 to first time home buyers who have a 0% loan payable over 15 years. What if there were no additional “Tax credits” for 2009?? What if in 2010 the first time home buyer program goes to $15,000 or even more. Are you going to complain more? Are those who received the $8,000 no pay back tax credit going to start whining? What else will you complain about next in having the US Government take care of you?
It seems to me that everyone wants an exact same size piece of the pie. How about we just take all the money in the USA and divide it up and split it equally. Drive the same colored and style car, live in the same colored house with the same design, wear same clothing and same designs, go to the same doctors and receive only the government regulated health care.
Stop being such cry babies!! There are a WHOLE lot more people in bad financial times who have not only lost their homes but their jobs. They have no options as to obtaining a free interest home loan, let alone being able to keep or refinance their existing loans before they loose their homes.
How about America stop crying to the government to “TAKE CARE OF ME”. I did not go up to have someone else change my diapers, I grew up knowing that if I did not take care of myself, no one else would. This is the trouble with America today, to many want to sit on their sofa watching government sponsored TV waiting for the government to send them their checks to live on. What is next, having the government cash your check, buy you your groceries, cook and clean for you and wipe your backside. Stand up for yourself and stop relying on others to care for you. America is not a SOCIALIST COUNTRY and never should be!! What happens if some country tries to attack America? Are all you crying, whining, sniveling, belly aching no bodies going to sit on the couch and watch TV? Or are you all going to act like adults and do YOUR part to help your country?
Comment by SHENIKA MANN on 11 March 2009:

MARCH 11TH 2009

AS A WORKING AMERICAN I DO PAY CLOSE ATTENTION TO THE WORLD ISSUES THAT AFFECT MY HOUSEHOLD. YOU ARE AWARE THE NEW TAX CREDIT FOR NEW FIRST TIME HOMEOWNERS. I WAS ONE OF THE PEOPLE TO ACTUALLY REACH THE AMERICAN DREAM IN THE TOUGHEST TIME IN AMERICAN HISTORY. THE TAX BREAK WAS GREAT FOR NEW HOMEOWNERS TO GET A HEAD START ON THINGS FOR ROUGH TIMES COMING AHEAD. I REALLY APPRECIATE THE BONUS, BUT ACCORDING TO WHAT I’VE READ THE NEW BILL PASSED IN 2009 STATES FOR NEW HOMEOWNERS THAT PURCHASED A HOME IN JAN 1 2009 -DEC 31 2009 ARE NOW ELIGIBLE FOR A $8,000 TAX CREDIT AND NOT HAVING TO REPAY THE CREDIT AS LONG AS THE HOME IS THEIR PRIMARY RESIDENCE FOR 36 MONTHS OR DON’T SELL. NOW THE NEW HOMEOWNERS FOR 2008 THE CREDIT IS $7,500 BYT WE HAVE TO PAY THE CREDIT BACK IN A 15 YEAR PERIOD. HOW DO YOU SEE WHERE THIS IS FAIR BY ANY MEAN? AS WE ALL KNOWE 2008 WAS ONE OF THE WORST YEARS IN AMERICAN HISTORY AND NOT TO MENTION IF YOU ARE A RESIDENT OF FLORIDA WHERE RIGHT HERE IN MY AREA WE HAVE THE HIGHEST RATE IN FORECLOSURE, NOW IF YOU HAVE A PERSON WHO WAS ABLE TO PURCHASE A HOME IN 2008, THE WORST YEAR I EVER WITNESSED THEN I FEEL WE DESERVE THE SAME TREATMENT AS THE HOMEOWNERS IN 2009. I DON’T HAVE A PETITION TO COME UP WITH BECAUSE I CAN’T FIND THAT MANY RESIDENTS IN MY AREA THAT ARE 2008 FIRST TIME HOMEOWNERS ALL THE PEOPLE I KNOW ARE 2008 FORECLOSURE RESIDENTS. PLEASE HELP 2008 HOMEOWNER’S GET THE SAME TREATMENT AS THE JUST NOW 2009 FIRST TIME HOMEOWNER’S. THANKS FOR YOUR TIME.

SHENIKA MANN
Comment by Jodi Suguitan on 14 March 2009:

Don’t forget about all of the other tax deductions you can claim as a home owner. Such as mortgage interest, certain home improvements, some closing costs, points etc.
Comment by Giovanni on 15 March 2009:

So i bought my house and closed on 01/24/2008 it seems i am not even eligable for the $7500. there is no were to claim it any suggestions
Comment by casimiro on 15 March 2009:

I don’t qualify either and I am not worried about a thing. I just had my taxes done and I asked my preparer to “hypothetically” add the 8000 and 7500 to my income. It moved me up from the 7% with some 15% to 8% to some more with 15%. Hypothetically speaking, I would owe roughly 1100 rather than taking home a hundred dollar return (hypothetic figures for 2009 based on 2008 tax stipulations).

I thought the no interest was a good deal also, you would not be able to write the interest off of that “loan.” Instead the whole amount becomes a one time taxable income for next taxable year. This will definitely move many people into a higher tax bracket for 2009’s returns in April 2010. Not sure how they calculated it but I am sure there is some formula that supports their reasoning to collecting as much money as possible in April 2010 and increasing the amount of people who are currently “under the bubble” to moving to a significantly higher tax bracket i.e. 15% to 25%. I would bet there are also formulas that support the dates which were selected also. (Didn’t Obama say we would be out of this “mess” in two years, Hmmmm?)

So what makes Uncle Sam more money? I am not sure but from what I can gather, by moving many people into a higher tax bracket you can tax them by a larger percentage, and the amount of people paying instead of getting a return increases immensely. Example by taxing any taxpayer whose $25,950 taxable income would have been taxed at 15%, by adding the 8000/7500 the taxpayer would then have a 33950 (or more) taxable income be taxed at 25%. Don’t know if this money collected in April 2010 from most taxpayers will be larger than the 7500 or 8000 given currently but it is worth investigating or at least discussing here.
Comment by casimiro on 15 March 2009:

I wish more people would look to see how this is going to affect them in the future not just this year. Think about all the people who are on a fixed income and whom are and were coerced into a higher tax bracket. Worse yet, squander their 8000 and will not be able to pay their taxes to Uncle Sam in a year’s time due to full on ignorance. Sad, really. There will be an avalanche of money in the form of taxes, penalties, late fees, etc being collected. A potential and further enslavement of first time home buyers trying to achieve home ownership because this is the most opportune time to buy. Sounds like something from Sun Tzu. I learned from that old public service announcement that the first one is free (2007’s 600 per adult and whatever it was per child-Stimulus Check). Once were hooked, then they start charging.
Comment by susie kansas on 16 March 2009:

This has really got me down… I’ve done nothing but work so hard through out my 20′ and early 30’s. I’m a flight attendant, we were hit hard on our wages after 9/11. So I knew I would have to cut cost any way I can, I always shared a room with others for rent just trying to get by. In New York I lived in apartment with 35 others in a 3 bedroom, others that stayed there had other residence somewhere else, but I worked more so it didn’t seem like I was there to much. I saved a decent down payment and was ready to buy about the time everyone, and anyone was approved for a loan, prices soared, so I waited, saved more money. After a very long wait, dreams to have my own room, own house, my own space, I also met the man I would marry, we got engaged, pregnant, married, and to get a house quick. The county I bought in had a first time buyer grant, but they disqualified me because I saved to much for my down payment. I was already bummed about being rejected for being responsible (Johnson County). And now this we bought the end of March, I always thought there should be a first time home buyer grant for everyone, everyone should be elegible, and in this situation, they should at least made the GRANT TO ANYONE WHO HAS NEVER BEEN ABLE TO PARTAKE IN A FIRST TIME HOME BUYING PROGRAM. Because my husband and I both first time home buyers why should we be left out!! We should be left with option of being able to use it to buy a second home and we could rent out the one we have…knowing we could be elegible would at least make me feel we are recieving fair treatment.. Why can’t it ever make any sense!
Comment by sue butler on 16 March 2009:

what about the single taxpayer got an interest only for first time home purchase May 2005. No credits, and now because he’s not deliquent on the payments can’t even get a modification and the interest only ends May 2010. The people who are not late on payments are getting dumped on. All he wants is to be able to switch to a lower interest rate with a fixed payment. because he owes more than the house could be sold for, no one will touch him. the bank would rather take it away from him and see it for a whole bunch less. that sure doesn’t make sense, but that’s what’s happening. thanks for letting me sound off.
Comment by jacob on 17 March 2009:

I closed April 7th…so I feel the pain of not getting it. It just may be the difference between paying additional taxes or getting a refund for my family of six. I will see Friday. I am praying for the refund of course or to break even.
Comment by Amy on 17 March 2009:

Yes, most of these people are whining. There are still people losing their homes and I myself feel very blessed and lucky to have actually been able to purchase my first home this year. I was not aware of the 8k I would be getting, I was just pursuing my dream. The 8k I will receive will be poured directly back into the economy promptly, as will be paying off the last of our small debt and buying furniture. We lived, a family of five, in a two bedroom apartment for two years. Tax credit, or no, wouldn’t have been my deciding factor in buying a home. If 8k will make the decision for you to put your name on the dotted line for 30 years of debt then you seriously need to consider if you are buying for the right reasons. We bought because we were ready to, not because of a tax credit. We bought for way lower than we “qualified for” because we were not willing to have a monthly payment we could not afford. I am blessed to even own a home, so those of you who are complaining about not getting a credit, think of all those homeowners before you who bought without a credit and all those people who do not have a home.
Comment by Kathleen Tavares on 17 March 2009:

I purchased my home on March 30, 2008, and it appears that I missed this tax credit by about a week. Is there any “wiggle” room on this date or am I just screwed. When we purchased our home we were definitely qualified and actually erred on the down side when we were estimating our annual income to be conservative. We were fine with the monthly payments etc. Now our home is worth $50,000 less than what we purchased it for, my fiance has been laid off from his job and things are impossible financially. Is there any help available out there for this situation?
Comment by Bob Wuest on 18 March 2009:

My team and I are expecting that this will be a bit of a stimulus for sale of homes in Cincinnati OH. We’re promoting it in every way we can.
Comment by Kelly on 19 March 2009:

I am a single mother of 3, married 18 years now divorced. I purchased a modest home so i am not looking for a handout to pay for an extravagence. I believe that first time buyer clause meaning you haven’t owned a home in 3 years doesn’t apply to me. I owned a home with my ex-spouse. I have never owned a home by myself. I think it should be clear that a single mom trying to pay for a home is not the same as a couple paying for a house. I think I am exactly the person that this bill should help and think the clause should be eliminated. The first time home buyer really should apply only to people who buy a home where the purchase price of the new home is some percentage higher than the last home purchased, with some calculation to level pricing if you moved from a less expensive area to a more expensive area (example Buffalo to DC.) If it is too complicated…anyone who bought a new house in 2009 should qualify. The idea is to get people buying so help them buy. Of course, this also requires that banks use good sense and don’t give loans to people that are far above their means.
Comment by Brett on 23 March 2009:

Does anyone know how this 2009 credit works for a Renovation loan? The house I am looking at purchasing is Bank owned but needs some fixing up. New carpet, cabnit doors, heater ect…Its

The home itself is about 45k, but would need about 35k in total repairs…the total loan would be for 80k, but the purchase price of the house itself is only 45k…

Does the 10% come from the 45k of the house, or the total price paid for the house including the reno which would be around the 80k range?
Comment by Valerie on 24 March 2009:

I just have a question that I hope you guys can answer… I just bought a house for the first time ever and we closed on Feb. 27 2009 and I decided to file my income tax excluding this new purchase… Did i make a mistake… Could I have received the 8,000 without having to repay? It was my understanding that we would have to repay this loan on a period of 15 years… and honestly I don’t usually receive too much back so I figured If I received 1,500 next year, automatically 500 dollars would go to repay this loan? I didn’t want to commit to that… I thought it would be best to not get this stimulas package so i don’t get myself in debt and so I could have that little extra money next year.
Thanks in advance!
Comment by Jesse on 24 March 2009:

I believe you can claim the 8k on your ‘09 return as well. Or, file a 1040 amendment and get it this way. So, no you did not make a mistake, and congrats!!
Comment by Jesse on 24 March 2009:

One more thing…the 8k tax credit does not require repayment…it is not a loan…no 500 dollars will be coming out of your return.
Comment by Valerie on 24 March 2009:

thank you jesse!
One more question… I already filed my income tax a week ago. Would it be too late to change it? it just seems to hard to believe!
Comment by Valerie on 24 March 2009:

Wait I just read it again and you wrote I can claim it on my 09 taxes…
Thank you!
Comment by ang on 24 March 2009:

I have a question dont know if anyone knows the answer. We were on contract from a individual to buy our home, we had 3 years, till we had to get a loan and get it in our name. We did this in oct 2005 and closed on our house on oct 2008. the taxes and everything were in our name and we had to have insurence on it. We just got the morgage on it in oct of 2008. Do you know if we qualify for the first time home buyers tax loan or not?
Comment by SamoanGuy on 25 March 2009:

To all the people whining about not getting the $8,000. Do you think you should get $8,000 too? If you should get it, then how far back should we go? 2007? 1970? 1912? Stop the whining and just hope this helps the economy.
Comment by Derek M on 26 March 2009:

“How did you get screwed? You wont get as good of a deal as people that are buying a home this year but you still got a $7500 intrest free loan.”

Except the income limit for that didn’t qualify for the interest-free loan (income of >$95k). I’m 27 and took a hefty loan on in 2008. Sure, my free money would be “phased out” but I will still get a little bit…
Comment by Derek M on 26 March 2009:

“To all the people whining about not getting the $8,000. Do you think you should get $8,000 too? If you should get it, then how far back should we go? 2007? 1970? 1912? Stop the whining and just hope this helps the economy.”

No, I’m adamantly opposed to giving anything to anybody outside of children, the elderly, and the handicapped.

At least I’m consistent in my whining.
Comment by Derek M on 26 March 2009:

“So would you rather not get $8000 because of bad timing, or would you rather your new home lose $20,000 in its value this year?”

Depressing moment… this isn’t a “would you rather” question personally. More like “how would you like to not get a credit and lose value on your first home within the first year of purchase?”. No? Too late ha ha.
Comment by Matt K on 30 March 2009:

I bought my house on Dec. 3rd 2007 and qualify for &7,500 interest free loan. I files my tax in Feb. hoping to make good use out of that $7,500 along with my tax return. Since I e-flied the tax return I thought I’d get the money soon, but I found out it will take another couple of months according to some tax experts.
Anyone received the first home buyer’s tax credit??
I’m not complaining because I missed free eight grand by waiting another month, just curious when I’m actually gonna get the tax credit.
Comment by Ann on 1 April 2009:

We bout closed in Feb. 2007 so I get nothing.
Comment by Sue on 3 April 2009:

I just spent an hour reading all of the comments above. I am amazed at the comments directed to the so-called “whiners”. I am like most middle Americans. I had to save for a very long time in order to even consider buying a home of my own. That time came finally, after many years, last September. I knew nothing about the $7500 credit/loan at the time. I don’t see why people who waited until this year to take this huge step should receive $8000 no pay back. 2008 economically was not much better than 2009 is turning out to be so far. If the government is going to offer this type of assistance to people buying homes for the first time, why the different stipulations? Why not just keep it the same for everyone….not a loan, just lending a hand. Maybe some of you don’t understand how really tough and expensive buying a home really is. Expenses pop up you don’t really anticipate during the excitement of looking and closing. So if they are willing to offer this assistance, then I feel it should be the same both years. Change the amount, fine, but make this either a credit or a loan, for everyone. That’s the main reason people are complaining.
Comment by Sean on 4 April 2009:

Does anyone know if there is any exception to the 3 year clause for a recent divorcee? I know a lady that was divorced two years ago and was probably on the title of their house at that time. Now she is renting and hoping to buy. She seems like exactly the type of person who this bill should be about helping. I am wondering if there is any “loophole” (I hate that word) for special circumstances like hers?
Comment by Alex is a little bitch on 5 April 2009:

This is in response to the comment made by Alex on 22 February 2009. Don’t be such a prick Alex. Just because you probably received the tax credit, are a fucking real estate agent, a trust fund kid, or maybe just a complete dick head; believe it or not, some families actually needed the first time home buyer credit. And yes asshole, we ARE a little bitter about buying a home in 2008 but not getting the credit because our closing dates were weeks or maybe days from the April 9, 2008 deadline. The government makes up all these fucking rules and cut-off dates and the people of this country are tired of it. Just like we’re tired of mother fuckers like you! Move to Canada asshole!
Comment by craig on 7 April 2009:

Why are they putting a date to this 7500.00 credit. I believe if you are going to give a credit for those who puchased a home in 2008 you should give it to all starting from 01/01/2008.
Comment by sharon on 9 April 2009:

You think you got screwed we bought our house in Oct.2009, but we bougth it from my mother -in-law.We had to go through the same procdures as if we bought from a stranger.My husban and I got a FHA loan and pay like anyone else,but we can not claim the tax credit because we bought for a reletive.
Comment by melody on 10 April 2009:

We are closing on 4/23/09, has anyone gotten their check yet? and how long did it take?
Comment by Elaine on 11 April 2009:

OK…. let me get this straight…… I bought my house on April 4, 2008. So I do not qualify for ANY tax credits. In the past year my home value has gone down 30%. If I had waited a year to buy, I would have gotten the same house for 120K instead of 175K AND I would have gotten 8000 of free money. I’m having to deal with a house that has lost value too. When do I get MY help?
Comment by What is happening to the USA? on 13 April 2009:

Ok, I bought my first house in March of 2004. I got nothing but 4 more years of Bush.

What the hell is happening to America? Not only are we bailing out the slobs who overbought, we’re now handing out homefare checks to new buyers?

Here I sit in my home that has barely appreciated since 2004 when looking at current values. Now I get to see people pick up homes at a huge discount due to the market being in the crapper, get $8000 handed to them, and I also get to watch people in much larger homes than I get assistance from the government because they were too stupid to know they overbought.

I bought within my means, and I’ve never missed a payment. My reward? lol. I feel like a fool.

This country aids the incompetent and rewards the stupid, all at the expense of responsible Americans. Does monster.com have an international version? It’s time to pack up and head out. I’ve had it with supporting everybody else on my stagnant salary.
Comment by FH on 14 April 2009:

I purchased my house in July of 2008. I did qualify and receive my $7500 loan from Government. After reading the new bill with $8000 “cash-back” without any payment, I felt a bit dispointment. However, I do not complaint and I fully support the Government’s decision. For this particuar credit, I don’t think it intends to help home-owners to keep their houses, and/or reduce their financial pressure. For my point of view, it is just a marketing strategy played by the government whose goal is trying to get people go back to house market. It is definitly a huge difference between $7500 loan and $8000 free money; however, it just like any good you purchase from a retail store. Sometime you lucky, you purchase it at on sale; sometime you are not, you got it with the original price.
Comment by Julia on 14 April 2009:

I purchased a house in Sept 2008 and could not believe when the first time homebuyer’s tax credit was changed from a loan that needs to be repaid to one that does not.

Please make your voice heard on the following petition site:

http://www.thepetitionsite.com/1/2008-First-Time-Home-Buyer-Rebate#signatures

Hopefully it will be amended and we can keep our money, too.
Comment by Robyn on 14 April 2009:

How about we all get together and make a website where people can submit their requests to congress? I appreciate everyone’s support of each other, but let’s do something about it– let’s make a change and use our democracy! I can draft a letter to publish if someone else knows how to put the website together.
Comment by What is happening to the USA? on 14 April 2009:

I think both the loan and the homefare check are nonsense. Sign a petition? The only petition I’m signing is for all to give the money back.

Look, as I said before I bought a smaller home within my means. I bought this home banking on the fact that a real estate market like it was in 2004, WITHOUT MANIPULATION, would eventually bust.

It was supposed to.

The plan was that housing values would eventually collapse naturally, I would sell my smaller home, and then buy a new, larger home for about double the price.

Well didn’t I get screwed.

If a brokerage firm tried to manipulate a stock the way the govt has manipulated the housing market the SEC would hand out indictments like Christmas cards.

There should be no mortgage bailout. No stimulus loans. No stimulus freebies. This is total BS. The market was SUPPOSED to collapse. What about the people who had the foresight and good old fashioned common sense to play it straight? What do we get? Shafted.

I’m still laughing. A petition for the 2008 loan recipients to keep their money. How about a petition for the people who bought smaller houses in 2004 waiting for the market to collapse, LIKE IT WAS SUPPOSED TO, to get a 20 to 50% rebate on the purchase of their next home? After all, that’s what we’re getting screwed out of depending on the area.

The new USSR. Unites States Socialist Republic. Disgusting
Comment by Duane on 15 April 2009:

it doesn’t seem that anyone has picked up on this… the dollar amounts for an “interest-free loan” credit and a “gift” credit should be different, based on separate criteria. Giving a $7500 loan is bad enough, but when it was changed to a traditional credit, the amount should have decreased significantly. Where the hell is this money coming from? And if they do pull out the 3-year or “new home buyer” clause, then everyone will jump and the market will spike again, then everything will bottom out again in 2010.

I’m embarrassed to admit I’m considering selling my house to my fiancee this year (won’t get married until 2010), just to get the $8000. I’ll have to see how much the closing costs would eat up that $8000, and if the home has devalued any. Then of course I’ll have to see if my conscience can handle sucking money out of a poor government for my own personal gain – of course, everyone else is…
Comment by Duane on 15 April 2009:

I guess if it was a non-refundable tax credit, that would make more sense, but then it would be less beneficial to the low-income bracket than it would to the middle and upper-middle classes, which is not the idea. The thing is there’s no perfect solution, and this will help a lot of deserving people. At the same time, some who don’t deserve it will come out smelling like roses, and other deserving people who took a chance during economic downturn to do their part to keep things going will miss out. Sucks, but that’s life. As long as they don’t leave this in place too long it will probably be fine.
Comment by Gee F on 15 April 2009:

In response to How long it took and what forms need to be filled out.

I purchased my home Dec 14th 2008, and received the 7500 tax credit. I submitted my tax return on Feb. 3 2009 and recieved my refund Feb. 14th, which was faster than I thought. There were no additional forms to fill out as I used turbo tax online. They ask you if you purchased a home and atuomatically tell you that you qualify for the credit. You do have the option of accepting the credit or not accepting it. Hope this helps.
Comment by Jennifer on 23 April 2009:

I recently got divorced and my husband owned the home. He kept the home and everything in his name. As part of the settlement he kept what was his I what was mine. Would I qualify for the first time home buyer?
Comment by David Pylyp on 24 April 2009:

Congratulations to you for providing a platform and forum to exchange ideas and news with your readership.

You inform and engage the participant with concepts and events.

To your continued success.

David Pylyp
Toronto
Comment by juan calderon on 25 April 2009:

I heard from few individuals the they were able to get the 7500 tax credit eventhough the got their home prior to April 2008, e.g. 2005/2006. Is this true/legal or just some kind of data manipulation by their tax preparer? Bcoz I asked my preparer and he don’t know of such except for the April 2008 – Dec 2009 bracket.

TIA
Comment by Charlotte on 27 April 2009:

I closed on my home 12/20/07 – where do I stand? Does that make me qualified to receive the $7,500 loan? If so, please give me information on how to apply? Thanks
Comment by Brad on 29 April 2009:

If I own land and build on it this year, I am eligible for the credit. My question is, do I have to CLOSE on the loan from the bank before I can get this, or is it when the inspector tells us we can occupy the house? We own the land, so there would be no title exchange. Does anyone know the answer to this?
Comment by Frank on 4 May 2009:

So with all the frenzy of this 8k tax credit, is there not a concern that things might get worse for the housing market? Speaking from a sellers perspective, what if my house doesnt sell before the dec 1. Now i feel like i’ve missed the window, and now I’m forced to reduce my price even lower.
Comment by frank m on 7 May 2009:

so many grown adults crying like little kids you wonder why you got screwed…. cause bush was in office …now 2009 a new year a new president……stop thinking about you and think about the nation know body put a gun to your head and made you buy in 08.Next you r going to be upset that some one else but you hit lotto
Comment by Nicole C on 20 May 2009:

I think a petition is a good idea. We have the right to voice our opinion- no one else is going to stand up for us if we don’t.
Comment by evana on 29 May 2009:

I filed my tax return and received my tax credits already. i later heard about the tax credit for first time homebuyers in o8 (i closed in march of 08) so i qualified. i filled out irs forms and sent it out, but haven’t received my $7500 yet and it’s been 7 weeks already. what do i do?
Comment by Thomasina on 30 May 2009:

Evana–you didn’t qualify for the $7500. The close of the house had to be on or after April 9. 2008–which was a day after my birtday and two days after I moved into my house. I closed on March 17, 2008. I missed it by a few weeks.

My question has been why not ALL of 2008, instead of just April? I refinaced later that year, but that didn’t count either.
Comment by 2008 Home buyers on 15 June 2009:

Hey all of you that bought your home in 2008 could have put it on your taxes and still got the 8000.00 tax credit if you would have read the whole tax credit bylaws it says it right in there that if you bought your home in 2008 you can put it on your end of year taxes and still qualify so quit cryin its your own fault you missed it cause you didnt research it……
Comment by Jeff Hammack on 2 July 2009:

I am confused…I closed on my house 1 April 2008, I did not get $7500 pay back or $8000 no pay back….did I get ripped off???
Comment by Lauren on 3 July 2009:

Yea I guess I would be mad or should I say disappointed if I missed the cut off date for 2009. But I consider all of you lucky, bc I purchased in Oct. 2007. Two months shy of 2008, and 15 days late to qualify for the New Jersey Homestead rebate every September. And now that I am finally in the house long enough our “wonderful” (far from it) governor decided he was going to take that away completely. The one extra boost we got every year for paying outrageous taxes in the state is now gone too.
Comment by Jessica on 12 July 2009:

After 11 years of marriage, my husband and I finally bought our first home in 2006. Now with only one income, it’s becoming difficult to stay on top of our bills. I would absolutely love a $7500 interest free loan from the government rather than just a handout from an administration that I don’t agree with. Anything in the works to retroact the bill to those who bought their first home a few years ago? I would really love to pay off some debt and stimulate the economy.
Comment by Adam on 14 July 2009:

I just amended my taxes for the 7500 credit, how long dose it usually take to get?? I heard 6 weeks!?
Comment by Amber on 15 July 2009:

We want to buy a home in Jan or Feb of 2010, any word on money for the 2010 year? We wont have enough money for a down payment till then. Any Help??
Comment by JLynn on 15 July 2009:

My fiancee and I missed out on the 2008 tax credit by two weeks , buying our house in March instead of April…. I would have gladly paid back the loan, although I can see why those who have to pay it back are upset. I just do not see why the date was chosen? The tax year starts January 1st as should the tax credit!! It is simply not fair ( I know I know lifes not fair…. but the government should be!!!). I guess its pretty late in the game to hope anything will be done about this now, any thoughts?
Comment by Linda on 16 July 2009:

I purchased a house in 2009, qualified for the $8000 tax credit….sent my tax amendemen in March. After 4 months, I have not yet recived the money from IRS! Called IRS, was told they are too busy and they need to assigned the case to a case manager….Any one has received the tax credit…?
Comment by DParker on 18 July 2009:

Don’t think that the refund will be rushed to you. I took advantage of the $8000. Told refund by June 4th. Called June 25th after receiving letter that it was under review. Had to change address to new address. Waited another couple of weeks and called again. This time told that they had 30 days from my last call to finalize. May be longer than this. I was told the hold up is that I now have a different address…”duh” I bought a house and moved.
Comment by carina on 22 July 2009:

We do not have bank financing but we went through a private investor do we still qualify for the tax deduction?
Comment by Layne on 23 July 2009:

Carina – yes you still qualify as long as you are within the phase out limitations (probably are) and haven’t owned a house in the last 3 years nor are you married to someone who has. In other words, where you get your financing is not a requirement, but there are other things that might disqualify you.
Comment by DParker on 24 July 2009:

After my post on the 18th. I called the IRS again today 7-24-09. Now I’m told that I must send in form 866-H. Guess what. they can’t find that form in their records…??? After about an hour on the phone, we find out that only the review department is allowed to send out that form. Now they have 30 days to send me the form and 30 days from when they get the form back. IRS office told me that they were just told about 3 weeks about what to tell callers and that they only have bits and pieces of how the program works. They can not answer questions that you may have, they use a script.
Change this to health care and you will see what you will have to go thru to see your doctor. Unlike a tax refund, people will not have months to wait on health care while we send forms back and forth (if they can find them)
Comment by Sandra on 26 July 2009:

I bought my condo on my own in 1994. Sure wish this was not only for first time homebuyers, could use the help now.
Thats all I wanted to say.
Comment by rebecca on 29 July 2009:

I filed our ammendment for the 2008 tax return because we closed on our house this past may. Does anyone know how long it takes for it process? Also how is it paid out? Does it come in a check or get deposited in the same account your tax refund did?
Comment by bonnie on 1 August 2009:

we bought our home in oct.2008. we can’t afford it now so we are going to let it foreclose. we did recieve the 7500.00 credit. will we have to pay that back? if so how do we pay it ?. we only live on our social sucurity checks ,that is all the income we have.
thanks bonnie
Comment by julia on 15 August 2009:

We are buying a house using only my husband’s name on the mortgage, because of my bad credit, but we file our taxes together and both names on the deed. Would we still qualify for the full 8000 credit, or only 4000?
Comment by JAMES K on 15 August 2009:

I bought my house in april 2007 is there any thing for me my house is now not worth what i paid and my payments go up even im on a fixed rate i get disability and will lose my house if i cant get some help.anyone have a sugestion.
Comment by Kelster on 21 August 2009:

I bought my home in February 2008. Two months shy of the cut off. Now I am hearing that if you bought in 2008 at any time you still qualify for the $7500. Has anyone else heard this or am I just out of luck?
Comment by Linda G on 27 August 2009:

Does anyone know how long it is taking to actually get the $8,000 stimulus check? We filed an amendment to our 2008 tax return and mailed it about 12 weeks ago.
Comment by Larry J on 26 September 2009:

I am currently living with someone who owns the house, i currently pay rent, if I was to become an owner of this property would I qualify for the homeowner credit?
Comment by Mark H. on 9 October 2009:

Although I am grateful for the First Time Hombuyer’s Tax Credit (which of course it’s not a true credit) it seems ironic that those of us who had the guts to buy prior to 2009 that we get stuck with having to pay back the “credit” over 15 years.

Hopefully congress will have some common sense and convert it to a true tax credit.
Comment by Erin on 13 October 2009:

From reading these comments it seems like a lot of people might benefit from reading the info on the site http://www.firsthomeexperience.com/main/. There is a free booklet to download and some easy to enter contests.

Check it out!
Comment by Elizabeth on 28 October 2009:

Purchased a home in May of 2007, and in June of 2008 lost it in a tornado. Finally got my new home rebuilt and closed on in February of 2009. Sucks that I don’t qualify for the credit. : (
Comment by Beverly on 29 October 2009:

Will a buyer be eligible for the 1st time home buyer credit if they are purchasing a home on a 3 year Lease with an option to purchase. If so what do they need to do to apply for the credit.
Comment by penny on 4 November 2009:

I purchased my home in Dec.2007,will I qualify for the credit,if not that is not right,because we all are first home time buyers and I feel we all should be able to receive something from it.
Comment by Amy on 5 November 2009:

Does anyone know who we should contact in regards to having to pay back the $7500 dollars we received from 2008? I don’t see how it is fair at all that we should have to pay that back when others are getting $8000 and not having to pay it back.
Comment by Mary on 6 November 2009:

In 2008, there was an extension to push first-time home buyers to purchase their homes quickly since the program did not get off the ground. The first cut off date, I believe was Jul7 08 then was extended to December 2008. The government made it clear this was temporary program that why I felt this was a great opportunity. As single mom of two, I definitely would not miss out on the chance of home ownership due to the exorbitantly high rents but I would have taken more time in purchasing a house with more features or sq. ft for the same amount of money. We should start a google community to address our concerns.

The Real Estate Bloggers

Actual Refundable First Time Home Buyer Tax Credit In Stimulus Package

Related posts:
$8,000 New Home Buyer Tax Credit, $6,500 Old Home Buyer Tax Credit
Should The $8,000 Home Buyer Tax Credit Go Away
IRS Auditing 100,000 Home-Buyer Credit Recipients
The Other Side – Fraud in New Home Buyers Tax Credit
$15,000 Home Buyers Tax Credit Smoke And Mirrors

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The Real Estate Bloggers

Actual Refundable First Time Home Buyer Tax Credit In Stimulus Package

Related posts:$8,000 New Home Buyer Tax Credit, $6,500 Old Home Buyer Tax CreditShould The $8,000 Home Buyer Tax Credit Go AwayIRS Auditing 100,000 Home-Buyer Credit RecipientsThe Other Side – Fraud in New Home Buyers Tax Credit$15,000 Home Buyers Tax Credit Smoke And Mirrors

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Related posts:
$8,000 New Home Buyer Tax Credit, $6,500 Old Home Buyer Tax Credit
Should The $8,000 Home Buyer Tax Credit Go Away
IRS Auditing 100,000 Home-Buyer Credit Recipients
The Other Side – Fraud in New Home Buyers Tax Credit
$15,000 Home Buyers Tax Credit Smoke And Mirrors