Buying a home in todays market

Well it is official. A friend of mine, who is also an accountant, has verified that you can get your $8,000 tax credit this year. Providing you qualify for one of course. If you purchase a home before December 1st of 2009 you can amend your tax return for 2008 and receive your tax credit. (waiting the usual time for Uncle Sam to do what he has to.)

If you are considering buying today please do it as early in the year as possible. Rates are rising and while home values are incredibly low the cost of ownership goes up with rising interest rates. No sense waiting until December for your tax credit.

I am not sure but I believe the current tax credit per child you have is $1,000. If I am right about that, this tax credit is like having octuplets this years and not having to change a single diaper.

Gotta love a tax credit! 

What Happens with the $7500 tax credit from 2008?

Did you buy a qualifying home between April 9, 2008 and December 31, 2008? If you qualified under 2008's Stimulus Bill Rules than you should receive your 7,500 tax credit when you file your taxes this year.

Word was that The Obama Administration was going to make it so that the 2008 tax credit would not have to be paid back. However, that did not seem to come to fruition. As I understand, the old tax credit of $7,500 is still an interest free loan from the US Government which will need to be paid back over the next 15 years beginning with the 2010 tax season. Anyone who qualified for the tax credit and received it would pay the loan back in $500 increments when they file their taxes each year over the next 15 years. However, that pay back would be  accelerated if the hom was sold before the full loan was paid back.

The Stimulus Bill $8,000 Tax Credit.

The word is out and the tax credit, while not $15,000, could be a boon for first time home buyers.

A first time home buyer is considered to be someone who has not owned real estate in the past 3 years. So if you have owned a home but sold it more than 3 years ago you should be good to go. Please note that the tax credit at this point can not be received until you file your 2009 taxes, next year. However, we have an inquiry into the IRS to find out if home buyers in year 2009 can amend their 2008 filing which is due by this April, and receive the credit this year.

Will keep you informed as we hear more.

Please note that this is a true tax credit and that if you do qualify for it and you keep the qualifying home for at least 3 years you will not have to pay the $8,000 back.

That is what I call a great incentive!

USDA Rural Development loans allow special assessments such as sewer connections, public water systems, street repair improvements to be included in thefinancing at the time of purchase. The total amount of assessment and purchase price can not exceed 100% of the appraised value of the property.

USDA Rural Development is out of money!?!

No not exactly. There are 2 different types of rural development loans.