Talkback: What did you buy with your $8,000 tax credit?
Have you purchased a home using the $8,000 first-time homebuyers tax credit? If so, we want to hear about what you bought and how the credit impacted your shopping and decision. Post your comments below, and you could be part of an upcoming story on CNNMoney.
I used my 8k to buy a lcd tv, new washer/dryer, dinning table, dehumidifier, and french doors to replace my beat up sliding doors. The rest is going to my savings account.
I bought my first house early this year. I was 22 years old and had been working for about a year and a 1/2 at my first job as an applications engineer. I had saved up enough money to put about ~15% down on a 150,000k house. When I got my refund I paid my parents back all the money I owed them $5,000 which they loaned me to pay off what I owed on the rest of my truck. I used the another 1,000 and bought a beater car (98saturn) which gets excellent gas millage for my long drive to work, as well as lowers my insurance $200 a year. I figure the car will pay for itself within a year or two. I used the other 2,000 to help buy some much needed furniture for my house. I must say owning a house is allot more expensive and work then I originally thought, but I am enjoying it tremendously. Although I do not agree with the whole concept of the tax credit, I did take it. I guess that’s being a bit hypocritical, but I was buying a house anyways and figured I will eventually pay it back through charitable donations over the years.
Been trying to buy a house in Maine or Michigan (I like the Prices) but every time I inquire on one that I like it gets taking off the market the following day and I do mean every time and some of them when taken off the market 2 to 3 weeks later puts it back on the market ? how do I get a house I like if they all sell right after I ask about them.
I need to now when obama going to send the stimulus money for the people o the tax this year he said is going to be 400.00 becuse the economic when bush he sent 600.00
As I absorb another day’s messages of record high numbers of unemployment, starvation along with conflicting reports of employment and general profits going up, my mind wonders away from numbers to actual people. People are still primal animals that will satisfy their needs for survival by resorting to doing anything that pays for their food and shelter which is causing the unemployment numbers to go down and money to go back into the economy.
Ha, I laugh as I set out to avoid this latest offer of false hope by allowing my mind to travel to a fonder story. My mail carrier, glowing in his elegance and happiness to be new at his job, renewed my heart as I learned a lesson I will never forget. We are all equal and should be happy to be alive and doing whatever job we can acquire. I see that gentleman doing all that he can for all us on his route while I realize through conversation that he is new with the Post Office as a result of loving his family and losing his executive position with a major corporation that no longer exists. Only my Ms. Recession Scrooge landlord sees the differences in people, she thinks that her tenants are rats that don’t even deserve dry cages. Maybe my sophisticated mail carrier with his smile as he serves all with kindness worked for one of the automotive dealerships that closed recently to help narrow the profit margin for Mr. and Mrs. Recession Scrooge. I further contemplate whether or not the reporter that wrote of the positive numbers questioned his landlord as to why it was ok not to fix appliances, doors and leaking ceilings.
There are examples all around us; I am escorting you through these stories to help you understand why our country is in a recession. We avoid the truth and turn our heads if we see anyone needing anything at all. We have become a nation of selfish Recession Scrooges.
Mr. Recession Scrooge, did you know that while you are ignoring why people are living under bridges another child died by a garbage can? That child’s mother’s heart cried for time to go backward so that she could have begged the gasoline station owner to let them spend the night in the bathroom. Her daughter is dead with the reporter talking of numbers that are offering hope that the recession may be ending. Real tears touched my cheeks as I realized that it did not matter to her that the numbers were going up or down. The mother that watched her daughter die by the garbage can had suffered through her worst in this recession storm. According to Mr. Recession Scrooge and the reporter, her daughter was a necessary loss to the recession to help profit margins climb upward. The profit margin may climb upward, but her daughter climbed six feet under to never climb either way again.
I had some grapefruit for dinner, a treat. Fresh fruit is expensive. Processed sugar is, too. Good, my teeth are not as young as they used to be. Have you ever been hired if you could not smile with confidence? Even the dentist’s ads talk about that job-hiring smile with teeth. If you have no teeth, you are not employable. Yes, there is that prejudice regarding older people with dental problems they cannot afford to fix. Is affording a job living beyond your means? I just saw an article of choice among the Mr. and Mrs. Recession Scrooges, the title says it all, “Five Signs That You Are Living Beyond Your Means.” I have to chuckle, if you never have money for gas/food and your bills are getting paid later and later every month, you are probably living beyond your means. If you need further signs, we could add in the lost or painful teeth, the dead daughter or go the Humane Society and try to find the family pet that was put to sleep because no one had the money to feed him. The dead girl’s mother was glad that she had not told her daughter that Fido was dead. Not to mention the fact that Fido only understood that his family deserted him, he would have died at some point of either starvation or a broken heart anyway. Putting him to sleep was kind; he had no idea that he was considered another necessary victim of the recession.
Then I looked across the street at the beautiful house with boarded windows and doors. I didn’t see a for rent sign or a foreclosure sign. I wondered to myself what it would be like to own a house like that and how beautiful it could be. As I continued to dream of rocking on the front porch, I heard laughter coming from inside, which startled me into reality. I was forced to remember that the United States is in a recession as I saw the sad face of a child peering through one of the cracks in the window between the boards. She must have been eating mush as the electricity and water had been turned off. This is a time in history when those that are dying may possibly be better off than those of us that are trying to survive the recession. If we are going to live through this recession, we are going to have to pay attention to how our forefathers survived possibly worse times than these. We have to become a nation of people working together with our walls built out of prejudices torn down.
Ms. Recession Scrooge landlord arrived at my door dressed in her finery to gather my rent money. I almost did not recognize her because she looked like six other women I saw that day. I forgot to give her the money because I was wondering why human plastic didn’t crack. I also looked for empathy in her face and a hint that she may be a real person when I saw a faint sign of humanity coming from some part of her. My heart sank as I realized that she was only drooling over the money that I had not yet handed her. Oh, by the way, I saw a doctor the other day with a duffle bag over his shoulder walking aimlessly. When do you think this man that was once considered the elite among us will be able to afford his next job?
We bought a forclosure/fixer-upper in a nice area of our city. Our tax credit went to needed updates and home repairs.
I’m curious, why do some seem to say they received an actual $8000? This IS a tax credit correct? Apply it to your taxes and you’re taxed $8000 less. So for sure some money in your pocket, but definitely not $8000. Correct?
I closed on my first home on March 4, 2009. The day after my 24th birthday. I have filed an amendment on my 2008 tax return to receive my $8K credit. I had my first child on July 10, 2009 so I’ve had a busy year so far! Unfortunate circumstances have driven me to place my 2 month old daughter in child care. As many know infant child care is extremely expensive. I’m talking about an extra $700/mo payment on top of mortgage, car, credit card bills, medical bills and everything else in life. This $8000 will allow me to pay for my daughters child care for an entire year and it has really relieved so much stress off of me. Thank GOD for the credit or I don’t know what I would have done!!! I could have lost my job!
So far the IRS hasn’t sent it to me. I’ve contacted the IRS Taxpayer Advocate and they just keep sending me letters to wait another 30 days. I’ve received three letters so far. I’ve called the Taxpayer Advocate and told her that everyone I know has received their credit and she told me they are probably lying. Is anyone else having a problem getting their credit? It’s been four months now.
As a small time slumlord I am hoping that congress will extend/increase the tax credit. With just about everyone and their dog buying a house these days I am now sitting on several vacant houses because there is nobody left to rent them.
With an extension, I am hoping that there are enough buyers left that I will be able to make them the proud owner of a house. As far as what I will do with the money/credit when I sell (who’s kidding who, seller really pockets tax credit), I am planning on investing in commodities before the dollar becomes worthless.
My wife and I closed on our house on March 27. We were able to file for the credit on our 2008 taxes and used the money to purchase appliances and pay off our credit card debt.
I bought my house at the end of February 09 right after the tax credit was passed and waited to file my 2008 taxes until the IRS was ready to allow it so that I could get the money immediately. The house was not a total fixer upper, but needed quite a bit of work.
We used it all on home repairs. Painted every room, refinished the hardwood floors through out the whole house, new lighting, and completely gutted the bathroom. We got the house for a steal with 20k of built in equity and then with the tax credit and a little extra cash we put another 10k worth of improvements in.
I bought my first home in June 09. The tax credit was not really a factor. I’ve been living with my parents for the past two years in order to save for a 20% downpayment on a modest little house, which has needed some work, in a nice area. The timing of the housing market and downturn in interest rates were helpful. I closed 6 days before my 26th birthday.
I’ll receive my credit when I file my 2009 taxes. Not quite sure what I’ll do with the money yet, but my ideas include adding to my emergency fund, opening a Roth IRA, and putting some of it toward a new (used) car when I’ll need it in the next year or two. Some home improvements that will increase the value of my house (i.e., NOT furniture or idiotic TVs) may also be in order. We’ll see.
I closed on my first home on July 17th, 2009. Filed an 2008 amended tax return for the $8000 credit. Soon as I get the money, I’m going to put 1/2 of it towards the mortgage principle, and the other 1/2 into savings.
I had saved enough money for 20% downpayment and closing costs. The sale price of the house was $129,900. The tax credit didn’t really make an influence to my decision to buy a house. Lower housing prices and good interest rates were the biggest reason. I consider the tax credit a bonus. It’s nice to finally have the govt give me some money, instead of me always giving the govt money. =)
MY daughter bought her first place, a condo, in Fla in June. We are still waiting for the 8k! I’m beginning to wonder if the IRS ran out of money!!1
Being a single mother and working 2-3 jobs most of my life with no child support,I bought a home at foreclosure for $119k 3bedroom/2bath/2 car garage with a swimming pool in my back yard. I never dreamed it would be possible. With the $8k rebate, I will pay off my car (Bye Bye $353. a month). From there I will be working on paying off my credit cards and medical debt. My goal is to be debt free by March. Of course, excluding the mortgage payment. If there is a will there is a way and I have found my way.
I just closed on my home on Aug 25th and will be sending in my ammended tax return this week. I plan to use only $2000 to buy things for the house. The rest I will put into the bank to build an emergency fund. Being a single mother of two, I can not afford to go on a spending spree without planning for the future.
I would pay-off my car loan or pay towards my mortgage to take the PMI off from my monthly payement.
Just wanted to say that the $8000 was very helpful to me, a lower middle income single working man.
The credit helped me buy a 170k, 130 old duplex (had previously listed for 225k) safely.
By that I mean, I was able to put all of my savings into the down payment (without which the monthly would not have been in my budget) knowing that I would get the $8000 soon to replenish my emergency savings, without which, I’d have had to save for another year, and then prices might have been back up and I’d have needed to save for ANOTHER year to account for that.
Also, the house needs all needs all kinds of stuff like insulation, windows, furnace, etc..
Peace.
My wife and I purchased our first home in June 09. Soon after we ammended our 2008 taxes to receive the $8,000 credit. We have put the $8K back into the house and the community by hiring local contractors to put a new roof on, tear out old diseased trees, re-plumb the laundry area, and replace some old windows. The $8K credit was not the reason we purchased. Home prices here in Napa, CA had fallen enough to where we could finally afford to buy without using the riduculous teaser loans that got the country into this financial mess in the first place. The harsh reality is that even after home prices have fallen about 35% from the peak, we still had to pay $430K for a downtrodden foreclosure 1500 sq foot house. Thanks President Bush and Alan Greenspan for allowing the banks to artificailly raise real estate values to the point where middle class college educated families can hardly afford to buy a modest house to raise their family.
I wish i could have got the tax credit three years ago. After working full time since 18 years old and going to a community college parttime. It took me 5 years to save up my own money, and buy a small house without help from Congress. Now everybody thats 1st time homeowner gets $8000. Must be nice. There going on vacation, getting new windows, new kitchens, and bathrooms. While i could to work to pay my loan off, and pay taxes for everybody to get a damn tax credit. i love america !
I’m stuck in my house because congress and the fed created a bubble in a market I happened to enter in 2004. I did trade my $2,500 clunker in for a new toyota truck, which I promptly sold to the tune of about $7,000 in my pocket. I then bought a used Hyundai, which will be paid off in the next 8 months. Thanks taxpayers!
Have lived in my house for 21 years, and thanks to hard work (like working 2 jobs most of my life) have paid the house off. No cash for clunkers, for me either – my 17 year old car didn’t qualify. Everything I’ve ever wanted, I had to work for without any help from the government; I’ve never gotten ONE THING for free. Nor, have I gotten any help from anyone, including my family. Certainly I’ll be paying for the new appliances and vacations some of you people are able to afford with your tax credits.
I purchased a $200K condo in June of 2009 and when I receive my money next year I’m going to use it to totally pay off all of my revolving debt. Other than the mortgage itself and my car (15 more payments) I’ll be debt free!
My wife and I have been shopping for a year when the $8000 program was passed into law. It took us this long because we’re “picky buyers” and wanted the perfect home. Once the $8000 credit was announced, we made a decision to buy anything, even a little condo, just to get back the credit. Fortunatelly for us, we ended up finding the home of our dreams and purchased it in June. We have yet to receive the $8000 credit and upon checking with the IRS, we were told that their processing timeframe just got extended from 8-12 weeks to 12-16 weeks; hopefully we’ll get our tax break in time to help us with the property tax deadline in November. Thank you US Government for helping us buy the home of our dreams!!!
I’m used it to buy depressed stocks. Which have gone up over 50%. Who would have thought finding a girl just out of college, who qualified for the credit I sure didn’t, and getting engaged, buying a house @ 4.25%, and the gov’t throwing $8k at us, when we didn’t need it. It’s pocket change for us, it’s worth over $12k, probably will use some for our wedding and honeymoon in Maui.
We built our home in July ‘09, and used the $8k tax credit to purchase all of our appliances on deferred interest and payments. We decided not to amend our returns, and just wait until next year to receive the credit.
I won’t receive the credit until I file 2009 taxes in 2010 but I’ll use the money to help replenish the cash cushion I depleted for my down payment. I’m saving all I can right now…all I keep thinking is that we’re in a major recession and I pulled out $80K in cash to buy a house.
KD from Seattle – can you say freeloader?
Thank you Obama,
In 2009, I got the housing credit, cash for a clunker and now cash for appliances. How could I be so lucky?
I took the $8000 housing credit and put it towards my mortgage. This in turn allowed be to reach the 20% investment in my house and I no longer have to pay PMI insurance. That is a 15% return on my housing investment for 2009. Then PMI insurance was 150.00 a month for 8 years.
I bought a fixer house with older but working appliances and now thanks to cash for appliances, I will get a substantial discount of energy efficient appliances latter this month.
Thanks Obama
Posted By KD, Seattle: August 25, 2009 4:49 pm
I am using the 8k for a flat screen TV (yes, me too), credit card debt, and my emergency fund. The low interest rates combined with the low prices of homes motivated me to purchase my first home now.I am blessed with recently acquiring a new position in the automobile industry, which has allowed me to take advantage of the affordable homes in Indianapolis.I think those who were not eligible for the 8k should be cautious of criticizing others who did indeed receive the money. Although the government is getting too involved in our daily lives, why should those who are capable not take advantage? I am 30yrs. old and I believe I am making good decisions with the money. I also purchased a brand new home which I can indeed afford so I should be appaluded, not broken down for acquiring a tax credit. If you are not happy with where you are in life, do something about it.
REMEMBER WHEN YOU VOTE!!!
Vote out the bums who voted for this and CARS (cash for clunkers) and the new Cash for Appliances… VOTE THEM OUT.
They reward people at random (at best) or those who have been bad in the past (at worst) and leave the rest of us to pick up the tab.
Bought a home I could afford in 2007. House is now down in value. Not worried because I bought a house for the long term and can still afford the payments. However, I’d love to receive $8,000 to buy all these things others are talking about: upgrades, new windows, TVs, etc. Been a Democrate all my life, but I’m tired of the handouts. Unfortunately, I can’t support the other party dominated by religious right-wing nutjobs. GOP kick out the fanatics that moderate fiscal conservatives can jump in.
I thought my wife and I would never own a home, at least not in the pricey NW. ‘burbs of Chicago where I relocated for work after college. Luckily prices have come down and we bought a house for $350K instead of the $440K it was supposedly worth during the peak years. Luckily our income didn’t quite disqualify us for the tax credit so between the credit and our usual tax refund, we are getting $11,000 from Uncle Sam! Rather than spend it all on the house I think we are going to pay off my car loan (no more $300/month car payment, just the $560/month lease for the wifes car!) and see about putting in hard wood floors if there is enough left over if we do the install ourselves. If not, then I’m sure we’ll put the money into something else to update our home a little since it is still largely original from 1991 as far as the decor goes.
I am in negotiations with a bank over a short sale, and wouldn’t be surprised if this $8000 turns out to be taxable as income, just like the Cash-for-Clunkers money was announced to be taxable as income just last night.
Then we have the Dollars for Dishwasher program…taxable as income? Let’s wait and see.
This administration has a bad habit of changing rules in mid-stream.
Whatever’s offered, I’m ignoring it and letting H&R Block deal with it. I was trying to buy a house anyway, incentive or no, and planning to replace a couple of windows because they need it–not because Obama waves money at me that may or may not turn out to be taxable as income. I’m more worried about my future energy bills than what kind of handout I get for doing it.
Don’t you guys see a vote-buying program when it’s waved in front of you?
We have been responsible homeowners since we bought our first home in 2000. So we were not qualified for the $8,000 credit. Given that hundreds of billions of taxpayers dollars have been given to banks and firms – with virtually no strings attached – that caused the credit and housing crisis in the first place, the $8,000 buyers credit looks absolutely pale compared to the massive money our government has spent bailing out Wall St. Even though we are not qualified for the credit, we would support having the credit extended throughout 2010, because there will be a second wave of foreclosures in the coming months, and the credit will help stop the rising tide of foreclosure. The economy can’t recover without the housing market improving.
The $8000 is going to the seller, not the buyer. It was done to prop up home prices. The buyer is giving $8000 to the seller and then the government gives the $8000 to the buyer next year. Our kids pay for it later.
My wife and I were already looking for houses and were really excited to hear about the tax credit not having to be paid back. It was not a deciding factor at all and we intend on paying off all of our credit cards and should still have a few thousand left over to stash. Regardless of the principle of the tax credit being “right or not” it will be a help to us and after all these years of paying in for everyone, i feel like its my turn now. 1780 sq ft, 12yr old, 3 bed 3 bath for 108,000! We pay less than what we were paying for rent.
My husband and I (both 23) just graduated in May of 08, bought the house in February of 09, and got the check 8 weeks later. We used the credit to pay off some debt and buy a new car.
My wife and I just bought a house. We bought a house that was large enough for us with a growing child that we could afford. The tax credit will be a nice bonus for something we would have done anyway. It will probably be put back into the house to help increase value and some savings for a rainy day. I have always viewed this credit, even when it was a loan, as a way to help return some savings to people who might have waited another year or 2 before buying a house so they wouldnt drain all of their savings.
We are first time home buyers and were spurred into the market by the $8,000 credit. We’ll be closing in September.
For us, we plan on putting the $8K right into our savings account. While it looks like the economy is rebounding, things still seem too fragile with the unemployment numbers, low retail figures, etc. to spend any of it.
We would rather be safe than sorry. So saving for a rainy day (or because of it) is our plan of action.
My wife and I bought a 3/2 in Birmingham, Alabama. It originally listed for 205,000 in November 08. It was then reduced to 189,000.
Later, we bought it in March 09 for 175,000.
We didn’t have any debt, so we had been saving money for a down payment for about a year. Right before we closed we pulled 8,000 out of our emergency account so we could put down an even 50,000. We quickly filed an amendment to our 2009 return and recieved the stimulus 6 weeks later. We used it to bolster our depleated emenrgemncy account.
My wife is now a stay at home mom to our new son who came last month.
I don’t agree with any of the economic principles on which the stimulus based, but it was helpful to my family.
My husband and I bought out first home (condo) and closed on December 30, 2008, just days before we would have been eligible for the $8,000 credit instead of having to pay back the $7,500 credit we received. Our total monthly payment (mortgage, pmi, taxes, assesments) is approximately what other people in our neighborhood are paying in rent!
We used that money to pay off our car so that we could have NO other debt besides our mortgage and student loans and still have plenty of savings in the bank.
For all of the people who are complaining about people receiving this credit, we are not the people who started this whole mess. Please blame not the gov’t, but the greedy people who thought they could finance a lifestyle they could not afford.
And I’m sorry, but I’m personally really looking forward to the day that my husband and I are making over $150,000 and get to whine about not being included in gov’t programs. Oh, to have the problems of the rich.
Hey Helios, how about you wait on upgrading your kitchen until you have the money and don’t need to use credit cards. Oh wait, the government is going to take care of you. What a sad, sad situation.
Used mine for putting it back in the home. Draperies, floors and the rest with an LED tv. Would have taken me much longer to do all of that without the credit.
I really hope everyone understands that they don’t have to wait until next year to apply for a house they bought this year. The program was set up so that even if you purchased in 2009, you can ammend your 2008 taxes and get the $8000. I already got my check for a home purchased in Feb. 2009. It took 12 weeks to get, but the forms are easy to do and I did them without any help. It’s your money, get it NOW.
I bought a house in June for 200k. The down payment was about $8,000, which was most of the money that I had saved for my wedding. I submitted the amended tax return so I can get the money sooner. Now I can get married and own a house! I wouldn’t have been able to do both without the first time home buyer credit.
I bought a home in early 2009 and was able to qualify for the $8,000 first time homebuyers credit. I’m proud to say that money went straight into my savings account to replenish the $11,000 my boyfriend and I paid out in closing costs. Yes I bought new furniture, paint supplies, etc, but I paid for those things with money I had already set aside.
I brought my house in June, 2009. I got to wait for my tax credit for another six months or so. Anyway, I already spent $10,000+ on new flooring, paints, total kitchen remodeling and a few others. My credit cards are full and I am waiting for the tax credit so that I can pay these off.
Posted By Helios, Irvine, CA: August 26, 2009 3:58 pm
Wow, if somebody really needs the $8K credit to buy a house, it means they cannot buy house. I’m afraid the government is creating the next foreclosure wave. The same goes about buyin now with less than 20% downpayment, there is a big, actual risk those people will be underwater in 2010/2011, so if they need to move, got un or underemployed, divorced…etc, they won’t be able to sell and cover their mortgage balance. Short sales anyone?
We bought a house in May of 09 that was on the market for 250k that we bought for 210k. We did qualify for the $8,000 tax credit and we’re anticipating filling out our 2009 taxes so we can see the check in feb/march of 2010. We plan to finish furnishing our home and paying off some credit card debt. Other than accomplishing those two things, it was a huge relief knowing that I didn’t have to tap into our personal savings to do this. Our down payment was $10,500 and with the $8,000 tax credit, property tax, interest and PMI we’re paying and writing off, I’ll probably get most of that back when it comes time for our tax refund. So in a way it’s like I got a 30-year fixed at 4.875% with 0 down with under one point. Not something that could’ve happened any other time in the last four to five years, if not longer. The stars were aligned for us!
We installed all new energy efficient windows throughout the house for over $10,000 and with the rebate that we will get from our 2009 tax filing – it will almost be a wash. Since we were in decent shape going into this, we are still doing other improvements to the house, but we could not have done as much without this tax credit! Now that we will be spending less in heating/cooling costs, we can use that money towards other improvements as well. We are just happy that the other three houses that we were going to buy fell through – otherwise we would be paying back the $7,500 loan over 15 yrs.
We bought a $90K condo on Maui. Paid cash. Refurb budget 35K. $8k first time buyer break just gravy, not a deciding factor.
I’m so thrilled to see my tax dollars helping people buy new kitchen appliances, curtains, furniture, and cars. I’m hoping that my money will next be used to send some people to some lovely vacation destination, what with the stressful decisions of what to do with $8000 of guvmit cheese.
No I can’t take the 8000 because I’ve owned a house within the last 3 years. I’ve been fiscally responsible and we’ve saved and prepared to build our dream home, but since we didn’t expect the government to fix everything we get screwed on the 8000 and the energy efficient windows too. This credit is just a way to lure more people into more debt that they can’t afford. It’s costing taxpayers on the front-end and will on the back-end when we bailout all the foreclosures.
Wow – lots of great ways to spend $8K! Wish I got the same break when I bought my home in late 2007. What crap this is!! I don’t understand how this is fair to ALL hardworking, tax paying Americans!!
I’m waiting for the $15K incentive that Congress will soon legislate (courtesy of NAR lobbying effors) plus higher mortgage rates, higher taxes, higher inflation, lower R/E prices, and higher-end properties to pick from. Crony capitalism, ain’t it great?
Although I am feverishly looking for a house that I can purchase by November 30, 2009, I am getting discouraged I won’t make the timeline. Has anyone heard that there could be an extension to this tax credit?
I brought my house in June, 2009. I got to wait for my tax credit for another six months or so. Anyway, I already spent $10,000+ on new flooring, paints, total kitchen remodeling and a few others. My credit cards are full and I am waiting for the tax credit so that I can pay these off.
I have not yet been further along than a “backup offer” in the past 2 years of looking. Coming in second to a 3% down FHA when I’ve saved for 20% down kinda stings. The tax credit is not my incentive, but it’s sure creating an artificial “bidding war housing boom” in SoCal.
The income cap is appropriate, if you can afford more you don’t need the stimulus. This should not be a factor in a purchase, if you’re ready then you’re ready regardless.
I agree with posts below, I’m thinking that I’m going to wait until Nov/Dec to start looking earnestly again. As long as this false boom does not substantially raise interest rates on 30-yr fixed with 20% down, I think I’ll end up with a better home in the long run. Having to write offers on properties that are less than 24-hrs old, SIGHT UNSEEN, and still not getting there soon enough to be a contender… That’s just insane.
I sense a great deal of hostility and unrest with those who were unable to utilize the credit for any reason. Many first time home buyers were out purchasing the homes that YOU folks probably wouldn’t even want. The credit is doing you a favor by getting REO and foreclosed houses off the market so YOUR neighborhood doesn’t lose any more value than it already has. These are the smaller, starter homes that need some fixing up, and I’m sorry but if you make over $75k you’re doing really well in today’s world and you don’t need a credit. Period. Spend more time writing to your senators and representatives about making sure they don’t increase that credit to $15,000. Then you’re really talking home inflation that you had the chance to fight against.
This credit business has to stop. First homes, then cars, then windows and doors, now appliances?!?! It shouldn’t be the government’s responsibility to do this. Manufacturers have already been receiving rebates on energy efficient appliances – but you never saw those savings passed down to the consumer, did you?
I purchased in March 2009. Received the FTHB Tax Credit and then my car broke down. Instead of keeping the funds for reserved i purchase a new car and used the $8000 for the downpayment.
Kari from Mission Viejo CA- If you owned the condo by yourself during the last 4 yrs then your husband DOES qualify for the first time homebuyer tax credit on the new property that you purchased together. He may take the whole credit-you may not take any. Look into it!
We bought a $540k 1465 sqft house in Irvin CA on Mar 2009
So far We’ve spent:
$14500 on upgrade 2 bath rooms, paint
$500 on dishwasher
$1800 on arctic fans
$5900 Low E3 windows
$8800 New AC system
We bought a $145k 2000 sqft foreclosure that last sold for $350k.
It needed new appliances, paint, and could use new floors.
So far We’ve spent:
$8000 =
$2000 new Kitchen appliances
$2000 new Bedroom furniture
$4000 credit cards (including Moving, Paint, Tools, Ceiling Fans, related and prior expenses)
We’re also looking to eventually put in a fence and redo the floors, so we’ll easily have spent over $8000 once we get around to finishing up.
We did not qualify. We spent the first four years of our marriage sitting out the housing insanity in our 600 sq ft one-bedroom condo (I purchased in 2001), with two teenagers while we waited for the prices to crash to a level that was affordable. The crash finally happened and we just closed escrow on our first house together, without the help of the government.
Moved back to NY for a job and bought my first home after 5 years of renting. The 8k made it possible to replace the 45 yr old furnace with 98% efficient one and added AC. Along with landscaping, furniture and fixtures I’ll put all 8k back into my local economy.
Every one likes free candy but never think about its bad effects on their health. This $8000 tax credit was the bait to lure the young first time buyers into a mortgage commitment which may soon go underwater (less than market value) in 2010. All these incentives were meant for proping up the much overvalued housing prices. The banks/lenders are holding back foreclosure for 90 days (it will expire this fall), and holding very large inventory of REO houses from the markets while getting Fed bailout funds. But all these dams will break when the unemployment driven mortgage defaults builds up too much pressure for the banks and the Fed drastically cuts back on the bailout funds.
The tremendous amount of defaulted mortgages and REOs will push the second wave of housing downturn even further and deeper. Schiller and many other honest economists have predicted at least another 15% decline in housing prices in 2010. This will put a big dent on the weak recovery of economy. For a $400K mortgage the monthly payment will be around $2500, which needs a family gross income of $7500/month or $90K/yr. When two-income family lost 1/2 of its income, the $2500 mortgage become a major problem.
The bottom lineis, all the incentives for the young first time buyers to buy houses are really for supporting the baby-boomer’s equilty in their over-valued real estates. Now the young buyers are hooked to pay for the risks down the road.
I purchased a home May 2008 and qualified for the $7500 “LOAN”. However, since it was only a “LOAN”, I did not opt to take it on my taxes. I missed out on the $8000 Free Money. If only they had made that retro-active.
LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I bought a run-down house in a bad part of town. I qualified for a 20-year mortgage, but hammered on the banker for a 30-year. Between the money I saved on the monthly payment and the 8000, I was able to buy new rims for my car, a 52″ plasma tv, as well as over a months’s worth of crack.
Posted By Al- Houston, TX: August 25, 2009 5:50 pm
To claim or not to claim…
I find it quite disgusting that we give hundreds of billions to the banks to bail them out and that money is mostly unchecked. What did they use it for? We’re not really sure, but you can bet it wasn’t all for good. Ultimately we’ll never know, nor do we probably want to. We handed over so much we can’t even count that high, much less track it.
Enter the homebuyer tax credit and cash for clunkers… bailouts that put real cash money in the hands of Americans. These bailouts are practically written to exclude as many as possible, make it as hard as possible to get, and give plenty of options to take the money back if you try in the slightest to take advantage.
WOW, what a system. Blank checks to the people who put us in this mess, pittance offerings and restrictions to the only people who can get us out. Sounds like solutions to you or recipe for more problems?
We were young and married and not the best money managers early on, so we waited quite a while to buy. We had to pay down our early luxuries (those plastic little demons) and save some dough. It felt like FOREVER, but ultimately we said adios to the cards, hello to savings, and were finally ready to buy.
We actually lucked (?) out. We found a home in November 2008 and would have closed in December had it went through and only had the $7,500 loan to pay back over time. That fell through though due to a shady seller. So, we filed our taxes after closing in January 2009 on another house and had the credit in a few weeks.
I’m not sure there was ever a question that we would take the credit, but we are keenly aware that the reason we took it is because we will be paying it back whether or not we took it. It went direct deposit from our tax refund, and direct deposit from our checking to our online savings, and will sit there. We’re working to pay down our house early (though not using the credit for that), max out Roth’s (for as long as those remain tax-free later), and garnering company matches on 401k’s. For the remainder we’ll do what we can through charity to minimize our remaining tax burden, but the rest is mostly unavoidable.
The credit discriminates against those who live in the North East. In order to afford a good house in a reasonably good area and pu 20% down, you can’t possibly do it without two incomes. Unfortunately I’ve some how become wealthy based on National Averages.
YES! I have always wanted to own vs. rent. However, the main reason I purchased a house on 4/14/09 was so I could amend my refund and get the $8,000 to help fund my wedding in September.
When mailed my refund to the IRS on 4/17/09, they said it would take up to 10 weeks to process. When I called at that 10 weeks, they kindly let me know the USPS lost it (not them, even though the amended refund was received by the 2 states I sent it to). I mailed a new copy (certified this time) and verified it was received in June. I jumped for joy that I would get it in time for the special day, but when I called, they now advised it will take 12 to 16 weeks.
A whole lot of good that refund will do me now, having to cut back on nearly every expense for the wedding.
I plan on saving it all so I can pay for all the new taxes associated with bailing everyone out. I did not buy a home because of this money, I bought a home because I needed a place to live. I do not care if the price goes up or down it is my home. The majority of people who bought and complain about the price of their home not being equal to what they owe on it were too short sighted to plan for the future and I have no sympathy. If you buy a home you should make sure that you can pay for it for the life of the loan by having investments equal to what you owe or a mortgage that can be paid by a job flipping burgers at McDonalds. If you buy a 700K house in California or Alabama and gripe about your taxes being too high you should of bought a cheaper house with lower taxes. If your job was not stable you should not have bought at all. If you have no access to emergency funds you are a poor planner. In the end personal responsibility is to blame for this nightmare not the government or banks or mortgage companies. The only people I feel sorry for are those who had legitimate life changing events happen to them like accident victims; everyone else needs to stop shifting blame and look in the mirror.
I haven’t decided what I’m going to do with it yet. I’m thinking about throwing it in a savings account as an emergency fund, but once I see the money in my bank account I know I will be tempted to spend it, so not so sure. I wasn’t sure if I could do an ammendment to receive it this year, so I didn’t bother. I’ll add it up with my tax return next year for a bigger check. This is for sure a once in a lifetime opportunity, you get paid to buy your first house, its like getting a house, and having the government throwing in the furniture for you. What more can you ask for, they already assisted the auto industry.
I had my offer accepted just before the bill passed and I already knew that I was going to remodel the house. The $8000 certainly came in handy and I’d say it covered all the furniture and then some. I also got an amazing 30 year fixed rate under 5%!!
I bought a foreclosure built in 1915, a 2-family for rental income to help with the mortgage. The 8K has gone towards the removal of knob and tube wiring, roof repairs, new garage doors, a dumpster to clean out trash – all things that had to be done, but would have taken a year or more otherwise.
My 23 year old daughter just closed on a 2 bedroom condo from the bank on Monday. She will be filing an amended 2008 return to claim the $8,000 tax credit. She has already purchased new carpeting and will be getting new flooring in the living room and dining room as well as a bunch of new furniture. She was fortunate to be able to have this opportunity. The price on this condo was more than twice as much just 3 years ago and I probably would not have been able to talk her into buying it without the tax credit, which will replenish her savings after she used most of it for the down payment and closing costs.
We ended up using some of it on our 1st anniversary vacation and saved the rest due to the recession. I guess you can say its part of our emergency money. I know my husband would love to spend this money but he has to get through me first.
I would love to use the credit but I just make over the limit so I decided to wait some more to see what happens to housing after all the rebate programs end. I think housing is looking for a new low next spring after rebates end and unemployment continues to grow.
As a long time renter, never got any tax benefits due to our biased tax laws. Finally, got something in the form of this $8K credit. Bought an REO in San Jose,CA in decent condition for $559K. $8000 makes very little difference in San francisco bay area, but the free money forced me to be a homeowner from a renter. I still feel bad, that I couldn’t make use of the $10000 CA tax credit for new home purchase.
Shouldn’t the combined salary limit of 170K for the 8k credit be different based on the location of the house? I am expected to buy a decent house for 700k in CA, pay 10k in property tax every year, pay 6% to brokers/agents when I sell the house AND still expected to earn less than 170k to get 8k credit!!!
Isnt 8k less than one year’s CA property tax compared to 2-3 years of property tax in other states?
No, I am not staying in CA out of my own choice! Given a choice I will be out of CA anytime.
Come on even places like LA, SF, NY have different definition for Jumbo loan. why can’t Fed have reasonable upper salary limit for the credit! Anyone Listening?
I sold my house in South Dakota in order to retire near children in California 4 years ago. The California market could only be described as crazy when I moved, and so I rented for those four years, which qualified me as a “first time homebuyer.”
Not only did I qualify for the Federal credit, I also was eligible for a $10,000Califonia credit for new construction. This unique combination was compelling.
I then found a new house going up in a retirement golfing community for about 45% off the peak, and will use the credit to finish off the back yard. Having been a long term homeowner prior to this experience, I feel like a random beneficiary, but, without a doubt, I helped a battered construction economy here.
You got to love it. You get a tax credit to buy a house in two to three years you won’t be able to live in because your taxes have been raised to pay for this credit along with the cash for clunkers deal and the the bank bailout. You go US government, help the hard working American and then screw then turn the road.
I think the money the government is putting out there is very temping the banks are our masters and we are now the slaves.what person would think up these programs is beyond me.people wakeup we are in a depression.i honestly believe this government stops progess
I bought nothing. In a nation full of overzealous spenders, we’re enabling those who wouldn’t or couldn’t buy a car to buy cars and those who wouldn’t or couldn’t buy a house to buy houses. I guess if we have problems with people spending beyond their means, we should continue to promote wanton spending by people who otherwise would not have done so. Our poor grandchildren… Can I pretty please get 25 cents on the dollar for my 25 years of social security contributions now? I’ll sign for the loss today!
Quite frankly this tax credit is appalling. Why in the world did firt time home buyers need an incentive to buy a new home? What the lowest home prices in 10 years, and the lowest interest rates in the last 50+ years was not enough? Now banks are willing to foreclose on homes rather than negotiate work outs because the market has buyers again, and somehow that is exactly what the American people wanted? I feel like I was taken advantage of. I have owned a home for the last 8+ years, and yes I enjoyed the increase in the market that resulted in home appreciation. However, I did not lavishly spend that money, I only invested in my down payment towards the house I now own, but wait there is more: My home has lost over $120,000 in value, my down payment is now lost and gone, I can’t sell my home because I owe more than it is worth, even with the 20% down payment, and even if I could get out from under, I still couldn’t take advantage of the tax credit because I would not be a first time home buyer. Wow! Owe, and unfortunately it is hard for me to express sympathy for those first time home buyers getting the credit because you are buying cheaper, financing less regardless of your credit compared to mine, and you are using my tax money to buy plasma TVs, that’s awesome!
Yes I baught a townhouse in lynchburg VA my middle credit score was 796 before i baught the house & it was 750 at the day of my closing WOW !!!
I closed on my first house last May. The seller raised the sales price above what he wanted and we split mthe difference on the side after closing. So I used that extra money along witht he $8,000 to buy a quad and two rifles for this coming hunting season.
It would have been nice to use the credit for the purchases I bought to fix up my foreclosure purchase. The house was in decent shape, but the carpet looks like it was 10 years old. I took advantage of the slumped prices and bought hardwood bamboo to cover the whole house at only 2.50 a sq ft.
After maxing out my credit cards before I could buy the glue… I have been waiting for 3 months for my tax credit to get here.
I didn’t think of the credit as a reason to buy a house, I was preparing to before the news was out. But it is a great way to furnish or fix your new dwelling… after you finally get it in the mail at least!
My husband and I purchased our first home in Feb. 09. We waited until after closing to file our taxes. We received $7500 of our $8,000. Thankfully, we made the cut to NOT have to pay it back. We had been looking for a year. I was reading cnnmoney everyday waiting for the prize. We received a 4.3%, 30 year fixed, with NO PMI. We bought a 4 bedroom, 2.5 bath, double car garage, barn with loft all on almost 2 acres. Our tax assessed value is $133,600 but we purchased the house for a grand total of $86,000. We used the tax money to replace carpeted floors with laminate wood, refrigerator (Samsung), new Simmons couch and love seat, chair, entry table, built a new wall to add an office, front door, door locks, paint, office flooring, 50″ plasma (Samsung), and a brand new lawnmower and wagon. As you can see we boosted the economy with the $8,000 we received and also increased the value of our house. We hope in a few years to make a descent profit off this purchase. Thank you Uncle Sam!!
Im Single, don’t own a home, can’t qualify for this so called tax break because I can’t qualify for a home loan.
Instead I will see my taxes go up to pay for these peoples tax break.
Hey, how about giving me some kind of bail out package so I can replace my 92 junker? Cash for clunkers you say? Gotta have job to make the payments. And Michigans unemployment is barly enough to pay the rent, and put food on the table.
Thats ok folks, I like being abused by the tax and spend politicians.. When I finally don’t have anything to tax, I can apply for welfare, knockup some broad, and settle down to raise a family on YOUR tax dollars for a change, without having to chase the clock and worried about the boss having a bad hair day.
Bought our first house with plans of making it our own. We replaced the plumbing, renovated the bath and kitchen, purchased new appliances, and painted the whole house. The credit allowed us to make a house our first home.
I am not a proponent of government hand-outs, but this allowed us to return some money to our local economy.
Each of my four kids just bought undervalued homes using the 8K credit. They don’t even have a credit score with low interest, tax-payer subsidized loans offered courtesy of the Obama-Nation.
My kiddos will be parking their new ride – courtesy of the Cash for Clunkers debacle – in their new two car garages.
All I can say is: “You go O!”
And also: “You’ll be paying for The O’s Largesse for the rest of you and my grandkids lives!”
Suckers!
And they’ll be and the banks Obama bailed
I do not like any of the stimulus packages but I was in the market for a house and with low interest rates and lower housing prices, when the 8,000 credit came I jumped on it. I pay through the nose in taxes too, and mine as well get some of it back. I put 3k in the market, put about 2k into the house, and the rest in the bank.
I had been planning for two years to buy a home in the spring of ‘09. The tax credit was an added bonus. It took about 10 weeks from the time I amended my taxes the last week of May.
Anyway, the tax credit helped me maintain my emergency cash fund. In addition, I dumped some of it in an IRA. Finally, I bought something that I probably wouldn’t have without the credit; a big ole plasma tv. I’m not the type to need all of the fancy toys but the tax credit gave me a chance to splurge a little.
I am VERY angry that my tax money is used to purchase people homes ( 8 K credit) / bail out banks & people /cash for clunkers…. NAME IT!!!
The ONLY thing I get out of it is the TAX BILL to pay for it!
I get NOTHING from the Government except the BILL! and even MORE taxes!
I ‘USED’ to work my rear off in my business only to be ‘rewarded’ at the end of the year with MORE than HALF stolen from my labors in TAXES!
I ‘wised’ up and have cut back no less than 80 % in my labors.
I USED to pay WELL over 100 grand in federal income taxes but NO MORE!
I relocated my business to a state with NO state income taxes SAVING me 30 grand a year in the move!!!
Now I work one or two days a week if even that!
I WILL NOT purchase a new car for the next 5 years! I WILL NOT provide any JOBS in my business I WILL NOT purchase any more assets or expand my business
I at 53 years old am semi RETIRED! taking it REAL EASY NOW and I am enjoying my life now!!!!
Soon as I hit 62 years old then I am off to the Social security office to get MY money back and a FREE power scooter to boot!
ANOTHER PRODUCER calls it QUITS!
With the combination of record low interest rates, and prices, my fiance and I were able to use the tax credit towards a downpayment of our first home, making something of the future, something we are now able to do.
My wife and I recently purchased our first house 4 bedroom 2 bath in Jun. I think the 8 thousand dollar tax credit was a huge incentive for us to get off the fence.
1.42in plasma T.V 1,000 dollars.
2.Couches and love set combo 2,000 dollars.
3.Paid of our car 2,500 dollar Saved us 200 a month.
4.New tires and tune up 1,000 dollars
5.Paid off credit card 1,500 dollars saving us 100 a month.
Well, I’d like to think my husband I make a decent living for where we live and we qualified for the $8k credit. We were able to get an energy efficient heat pump/AC unit installed, pay off a big chunk of our debt and put the rest in savings for an upcoming family vacation. It was definitely a motivating factor that got us into a house. I’m very thankful for the credit and our new home (with AC!).
we mite not get it because Hud is going so slow we won’t close before the the deadline and that is one of the main reason we bought the house
It sped up the process for me. I likely would have waited until 2010 to house hunt, but went ahead and bought now. I intend to but the money back in the house in the way of new kitchen cabinets or energy efficient windows.
After over 2 years of saving, my husband and I were finally able to buy our first home in the ever-challenging Bay Area housing market, thanks in large part to the tax credit. We have not allocated the $8000 yet, but will set it aside for future home improvements. The combination of low interest rates (even with an FHA loan), reduced home prices and the tax credit all signaled it was time buy.
I bought my house with the $7,500 tax credit from last year. The tax credit really helped my finances out.
Buying my own house was tricky financially for me. I had to sell a whole life insurance policy my parents bought for me when I was only a few days old to get the down payment. I knew about the tax credit, but wasn’t able to take advantage of the money until I filed my tax return, which limited its value to me initially and didn’t affect my actual decision to buy.
What it did affect is how much work I was able to put into my home. Because I knew the credit was coming, I was more willing to put money into my home right away. Some jobs I did myself, others I contracted out. The tax credit is enabling me to replace the roof on my house, which is old. If I did not have the tax credit I probably wouldn’t have gotten this particular house. I needed to be able to replace the roof due to its age (23 years), and the seller was unwilling to lower the price enough to cover my costs or to replace the roof himself. Without the tax credit, I probably would have told the seller “no thanks,” and bought a newer home that I didn’t like as much.
Hey Joe in Vestal, NY. I’m so glad you were able to buy a big screen TV with the taxes I pay. Enjoy!
Haven’t used the credit, but hoping it is extended into 2010 when I will have more saved and enough for a down payment. If the credit is extended I will definitely look to take advantage of it this spring. I have had to play games with 401K and such to try and take home enough to save but not make too much to miss qualifying for the credit.
Hmm…Look at these posts. I bought a TV, a car, a vacation. Glad I could help pitch in for these people to have these things. Feel great about where my tax dollars go….
I was laid off a little over a year ago and had to move to a new town. Sold my old house at a loss, but since I made a choice to live BELOW my means, I had purchased a house significantly less expensive than what the bank approved me for.
My family and I lived in an apartment for a year before purchasing a new house, then bought a new home for about half of what the bank would have loaned us. Didn’t qualify for the $8K though, since we had owned a home within the past 3 years.
In a further effort to be financially responsible, the two cars we own have a combined mileage of 275,000 miles but the gas mileage is too good so we couldn’t take advantage of the Cash for Clunkers either.
I’m rethinking this financial responsibility thing – our government is picking winners and losers in the game, and all I get out of the deal is higher taxes.
I don’t understand why there is an income component to the qualifications? If it was an incentive to spark housing sales why was it capped at 75K/year income? I’ve rented for the past 10 years with a modest income of 35K. Thanks to a recent promotion this year I will now be over 100K. The new job allowed me to purchase the home but I’ll miss out on the credit.
we closed in early 09 and are using the 8K as a down payment on an investment property. Basically 2 homes for the price of one. great program. Why dont we just have an incentive based stimulus. give me a reason to buy a house and i will, give me a reason to buy a car and i will. How about a 2K furniture credit, etc.
Got married in November and we bought our first house together in April. We would have bought without the tax credit, but we did end up buying $8K worth of furniture with it… so we did our part to stimulate the economy. Without it, we would still be sitting on the older stuff.
I think it’s a great deal if you are an idiot! For those of you who are not, we get to work hard, buy houses we can afford, expect to pay for them ourselves, and would like to think the government would not penalize us for making good decisions. However, that is not the case as the moron from Illinois (I live in IL so yes I can call him a moron) has decided to give rebates to first time home buyers to try and boost the economy using our taxes. Where is my rebate? I was a first time home buyer once. I pay all my taxes and never try to skirt them as it’s my duty as an America. My wife and I both work, we make around $180K a year …but that does not mean we should not get a discount. I personally think we should get more than many others as we pay more taxes and as such we should get more benefits than others including rebates on our home. Since when has spending more money ever gotten you out of debit? Come on folks, this moron is turning our country into a melting pot of idiots who would rather depend on the government for support than themselves.
I bought a run-down house in a bad part of town. I qualified for a 20-year mortgage, but hammered on the banker for a 30-year. Between the money I saved on the monthly payment and the 8000, I was able to buy new rims for my car, a 52″ plasma tv, as well as over a months’s worth of crack.
Well, let’s see. I lived frugally and saved my money, and was able to buy a home years ago, so I missed that one. I wisely chose a fixed rate mortgage, and my payments are not behind, so no help there. I avoided vehicles with poor gas mileage and I don’t own a clunker, so nothing there either. Fully half of my retirement savings evaporated, while the people that managed those savings made billions. Meanwhile, my wife lost her job, I have 3 kids in college, and we live from paycheck to paycheck – every one of which provides taxes for social security, medicare, and ‘Federal’. It’s nice that my planning has been so effective.
I have an idea…I will vote myself a payraise, buy a new car, and demand that my neighbors and their children and grandchildren pay for both. That way, I will not have to continue to balance the household budget and live within my means. It’s the American (government) way!
Yes, absolutely. If we did not have this tax option our buying power would have been greatly diminished. Moreover, a grant for the same amount enabled us to properly prepare the home (paint, appliances, etc.) that we purchased. We were approved for a $350,000 mortgage in 2008. Just one year later, were only approved for $260,000! Our situation did not change, our credit history was the same, and we actually had the same amount of money for our downpayment. It’s interesting how the banks pulled in the purse strings after they received their bailout.
I’m 24, former investment banker, just bought a 1 bedroom apartment in Brooklyn with my girlfriend. The homebuyer credit made the obvious decision to buy the apartment easier. We were already getting an excellent interest rate, our monthly payments were going to be less than our Manhattan rent, and our new neighborhood is gaining more and more popularity even in the downturn. So we used our credit to furnish our new home. As far as I’m concerned, the credit reduced our buyer’s stress and allowed us to flow more money back into the economy.
My wife and I purchased our first home even before the announcement of the $8000 tax credit. The $8000 was just an added bonus when we filed our tax returns and we immediately put it to good use. We installed new energy efficient windows, washer/dryer and put new gutters on our new home. You haven’t seen a bad window until you have seen the windows we had replaced. The windows replaced were original to the home in 1925!
My husband and I chose to wait to purchase a home, 4 years ago every couple we knew either had a house or were buying. We couldn’t figure out how they could afford it, the market was outrageous. Well now we know they couldn’t. We waited it out and saved, and chose to live in a apartment. Now we have a beautiful home, that we worked hard and saved for while others are trying to figure out how to stop there foreclosures.
We were already looking for a home when the stimulus became available. Because of the $8K we were able to purchase a home in need of a lot of repairs in a much better neighborhood. We were able to stay in our original budget for the house, and used the money to do the repairs, so we now have the best of both worlds.
I think it’s unfair of some of the people posting to assume that in order for people to qualify for the stimulus they must not be responsible and hard working or they must have filed bankruptcy at some point. You forget a majority of people need a loan to purchase a home and there not giving those out so easily anymore.
My wife and I make about $190k combined, but live in Manhattan.
We want to stay in Manhattan and the cheapest 1BR is over half million.
We don’t qualify for the program.
They should have increased the income threshold for at least NYC and San Fran where real estate prices are very high. We are right in the middle of middle class in New York City with our income. We have no credit card debt, didn’t buy any house we couldn’t afford, always pay our bills. No bailout for us. Instead, they’re talking about raising our taxes.
The $8k tax credit definitely helped in the decision making process. However, the main determinants were price and interest rates. Other factors were the local short term and long term housing market conditions, macroeconomic conditions, and the housing credit. Personally, the main risk I wanted to mitigate was to lose value in the home and have negative equity in the near term as the housing markets continue to deteriorate, even though Dallas has not been affected as severely as other parts of the nation. IMO, values in the housing market will take years to recover, and I did not want to suffer a loss. I needed to forecast at minimum a 6% increase in home value to breakeven on this investment since real estate agents charge around 6% of the home value as fees/commission. The $8k tax credit did provide some comfort since it gave me a buffer on this loss and/or future cost as I negotiated a purchase price on a new home. I was able to negotiate a great price and with the added benefit of the $8k tax credit mitigated a significant portion of the risk of devaluation and future cost. I am using the $8k tax credit to pay off my car note, and use the remaining balance to pay down the principle on my 2nd mortgage.
I think this credit is a joke.. I am a single person who will make about 80,000 this year so I don’t qualify for it!! Because of my income I never received the last “stimulus” and I don’t get to use this one. Not sure who came up with this income limitation for single people – but here in CA a 80,000/year income – is very middle class…
If $8,000 stimulates any individual(s) to finally purchase a home, likely they are already in trouble financially.
Most of the people that are posting their ‘great experiences concerning the tax credit’ are spending our tax money wisely……big LCD Tvs, furniture, appliances, down payments on cars.
And we as a nation wonder why we are in this mess ?!?!???!!!? We are reconciling our addiction to credit with even more credit, genius.
This is the only reason I became a first time homebuyer. A portion of the money went towards our wedding, the other to the house. Without it, I would still be saving up for a down payment.
What’s the incentive for people like me? People who did nothing wrong, other than do everithing right.
I purchased my first home, a condo in Chicago, and plan to use most of my $8,000 tax credit for savings, long-term investments, and retirement.
However, I am in the market for a 46″ flat screen, and plan to go pick up one tonight!
Upon retiring after 23 years of military service, my wife and I were going to buy our first home with or without the 8k. Wound up using the 8k for over 1000 sq. ft. of wood flooring costing just over 6k.
I bought a house in 2009. I used the tax credit to pay for necessary home improvements. The house was in relatively poor condition and the 8000 dollars only paid for 1/3 of the required improvements, but every contribution helps.
My fiance and I purchased a house in Upstate NY 2 months ago. We’re using the 8k to help fund new windows which the house needs (we’re getting another $1500 back for that) and the rest is going into a CD to earn some interest to pay for our honeymoon. This really helped out a lot, because without it we would be real strapped for cash.
As a teacher, in the past I could not afford to buy a home in the town that I am teaching in on my single income.
The 8,000 gave me an opportunity to take advantage of the housing market and covered my down payment on my new house.
Got a great deal on a house. Originally got the $7500 loan because I bought in January 2009. Then the $8,000 credit was passed for anyone in 2009. I amended my tax return in March and I’m still waiting on the additional $500.
Thank you Obama,
In 2009, I got the housing credit, cash for a clunker and now cash for appliances. How could I be so lucky?
I took the $8000 housing credit and put it towards my mortgage. This in turn allowed be to reach the 20% investment in my house and I no longer have to pay PMI insurance. That is a 15% return on my housing investment for 2009. Then PMI insurance was 150.00 a month for 8 years.
I bought a fixer house with older but working appliances and now thanks to cash for appliances, I will get a substantial discount of energy efficient appliances latter this month.
Thanks Obama
Well, my wife and I bought a house in February; problem was, it was our SECOND HOME (we had just sold our 1st home). It would’ve been nice for this $8,000 tax credit to be used on ALL HOME PURCHASES. Luckily we had alot of money saved (from the sale of our new home, and saving overall) that we were able to buy (stimulate the economy) items for the bigger house we were moving into.
My wife and I got married at the end of July, and we bought our first house in the beginning of August utilizing the low interest rates, depressed home values, and the $8,000 tax credit. We are both 23 years old.
We realize that this may seem like a big risk to some, given the opinion that home prices may continue to slide or remain stagnant for a while, but the opportunity was too great to pass up. We are also less concerned about the short-term movement of house prices because we do plan on staying in our new home at least 5 years.
All of that being said, we have used the $8,000 to furnish our new home (to the extent that it does not increase our credit) and the remainder to fund a emergency savings account.
I would have loved to use the $8,000 to add accessories to my new house. However, it seems Obama feels I make too much money to be included. I am tired of feeling discriminated against by our current administration!
My wife and I bought a brand new house in North Dallas. However, the 8k never came into play. Since we don’t need the money right away, we are going to file it on our 09 return, and put the money towards the principle of our mortgage. Paying 8k off principle will knock off years..
Just an FYI, If you bought “energy efficient” appliances, you should ask your CPA to see if you qualify for the energy efficient credit.
On a side note, If you are making a decision to buy a house (assuming its a 200k plus house) it is really stupid to base your decision off 8 grand..The money will not keep you a float.
I somewhat agree with AJ in Philly. I have tried to get one of these handouts, to no avail. I could have bought an SUV and gotten CASH for CLUNKERS, but I have a fuel-efficent car which does not qualify. Sigh. I also have rental property that I converted to rental use a little before the cutoff for the 8K tax credit. DANG, I couldn’t get that handout either even though I have been living in an apartment since 2007. Houses are too expensive for me, too and my company suspended pay increases and reduced my healthcare coverage so I have to pay more out of pocket. I am trying to get back at them by using the tuition reimbursement…but I have to take classes to get that money. So it’s a not completely free. At any rate, I’m taking as many as I can before they stop that as well.
In Maryland, taxes and houses will probably get more expensive in the future as inflation rises. I can barely afford my new house, but I decided to do it anyway. Even though I didn’t get a tax credit, the sellers are more willing to help with closing costs. Even so all of the loan-related fees are pretty expensive.
Why don’t you move out of Philly and Come to MD like everyone else? It’s overpriced here, too but we do have good crabcakes.
Like normal I couldn’t get a tax credit I make too much money. I am buying my first house this Friday. I make over the $75,000 a year so all I do is get to pay for some else to get the credit. Yes I can still afford a house but to stimulate the housing market the income cap should have been like a million. I am buying a $300,000 house. Try doing that on $75,000 and under a year. I am not a rich fat cat. I went to college for 9 years and work 7 days a week to make my money.
I bought a house in April of 08 – missed the $7500 by 4 days. I dont’t think any realitors or bankers were aware of the stimulus at that time. When the stimulus was ratifide they made it retractive to April 8 of 08. How they came up with that date is anyones guess. Sure could haved used the money though.
The stimulus is being used to artificially prop up the real estate market to give the banks enough momentum to slowly meter out real estate without huge immediate losses. Those that are in positions to be using this stimulus to buy a home will be underwater within 2 years time. Home values will continue to fall another 25% as the market is flooded with new foreclosures.
Isn’t it funny how the tax credits for housing and the rebates for cars (cash for clunkers) have working marvelously in stimulating the economy? Too bad the president and Congress could not have spent our 787 billion more wisely or we wouldn’t be looking at 10% unemployment and years of deficits right now. But they didn’t want to spend it to stimulate anything now did they. Just a huge give away for all of their favorite pet projects to their biggest voting blocks.
I bought my house in June 2009. This was the year I was intended to buy a home and did not need the tax credit to encourage me. My tax credit will not be spent. The money is in a CD savings just in case I ever receive a pink slip. My only debt now is a mortgage, which is a few hundred dollars cheaper than what I used to pay for in rent.
BTW – It was easy to get a mortgage.
This is extremely sad. I’ve purchase my home at the end of March and submitted for the tax credit and still until this day I have not seen my money yet. Their response to me was “we needed additional information.” This was in at the beginning of the month. Please explain why it takes 4 month to hear from the IRS after chasing them ten times in the last 2 months. Well I hope everyone enjoy their tax credit..
My wife and I out growned the current rental property and wanted to move to bigger 3 BR/2Bath rental house with back yard for our son to play. We couldn’t find the rental property which can take care of our current needs with-in our estimated rental budget. We did further research and figured out that buying a house may be a better option. 8000 USD credit was a major factor in deciding to buy a house Vs going to another rental agreement. This stimulus money will take care of our initial closing and other processing cost. We have Purchase contract in place and our closing day is Sept-30th. We couldn’t have even thought to buy a house without this 8000 USD stimulus bill. Thanks to Obama’s policy.
We could not take advantage of this, even though our credit is great, we have not owned a home in 12 years, we are still nervous about my husbands job, even though he has been there a long time, things are to shakey and we could not take the chance just in case he loses his job or has to recolate, but we will still be paying the taxes for everyone else to enjoy, just like the cash for clunkers, we has a good economical car already and paid for so we did not get to take advantage of it, I wish there was a tax break for us we are very middle class income, but never to ever get to take advantage of any breaks for us
Patrick, the lesser of 10% of the home price OR $8,000. If you buy a 340k home it’s $8,000. If you buy a $50,000 home it’s $5,000. You were probably phased out because of income or you have a bad accountant…I’m a CPA and dealing with it now professional and personally with my own purchase. 250k condo.
It looks as though I do not qualify for the $8000 tax credit according to the IRS. I purchased my home in July 2009, but have not owned a home or residential property in over 15 years. However, the tax code has mixed first time home buyer with ownership of a primary place of residence.
The IRS defines a primary place of residence as a place which a person lives, that contains cooking, sanitary, and sleeping provisions. This would make a camper, trailer, car, or cardboard box a primary place of residence. All that is needed is a Coleman stove and port-a-potty. And, if the person owns it, they would not qualify as a first time home buyer.
In my case, I lived in an old, old, NON HUD APPROVED trailer in a trashy trailer park. I wish I could show pictures. The building department will not let me move it, I can not get a building permit to fix it, and in many cities I could not sell it. I didn’t and don’t own the property as it is a trailer park, and the value of the trailer is under $1000. I may have to demo the thing. But, the value of the primary place of residence is not taken into consideration, or even if it is sitting on land that is owned by the resident.
But, George Bush didn’t own the White House and lived in it for over 3 years. Never mind the ranch in Texas. I don’t get it…
Please! Someone tell me I am wrong and can still get the first time home buyers credit!
I think this falls into the same category as the guy with the van, which did not qualify for the cash for clunkers.
Steve
Apache Junction, AZ
Like most government undertakings you had better read the fine print. Even though we qualify for 1st time home buyers according to state requlations we dont qualify for 1st time home buyer according to the government bill because we owned a houseboat as a principal residence. In other words if you owned anything and lived in it as your principal residence you dont qualify for the $8000.00. Im sure there are some buyers out their that will be in for a shock when the apply.
My wife and I recently bought our first house after renting for years. Sadly we are too “rich” to be able to afford the $8000 credit. Of course in our area of NJ (mostly NYC commutable towns) where median prices are well over $300k, anyone who can afford the 20% down, monthly payment and outrageous taxes probably makes more than the allowable limits of the $8k credit program. Those that do qualify and tried to buy houses in this expensive environment, well they’re the people who stretched themselves so thin and bought more than they could afford and got us into this mess in the first place. Sadly an extra $8k really isn’t enough to make or break your decision on a $400k 3 bedroom ranch.
We used our rebate money to put up a privacy fence in the back yard and to take a much needed late honeymoon to Myrtle Beach, SC. When we were first married we decided to skip our honeymoon in order to speed up the paying off of our debt and to get into a home faster. We were both sick of living in apartments. It was nice to have that refund money come in and allow us the honeymoon we never got to take.
I put an offer in on a house on the Feb 18th only a couple of days after the law went into affect. I closed at the end of March (lucked out on the bottom of the interest rates) did my taxes in April applying it to my 2008 taxes and had the credit in hand within 2 weeks. So it did work out greatly. Basically, knowing that I was going to get it, I put an additional $8000 down for the downpayment. I don’t know if I agree with the idea of a credit like this, but for once in my life it was nice to be able to qualify for a handout for once.
We invested half, and are in the process of putting in a standby generator and radon system for the home in the woods of NH. It didn’t have a big impact on our decsision as we were buying a house no matter what, but it was a nice cherry!
What’s the problem?
I hear all the hate, but all in all, I couldn’t ask for much more. After a re-work, my mortgage was reduced by $400 month, I received a stimulus check, my taxes are lower, I just got $4500 for my clunker trade in, my unemployment was extended to February, and free medical is in the works. And to top it all off, $8k for first time home buyers….
For a down turn, I’m just not feeling it…
I have an interesting story. I have a decent job and had bought a house with my partner back in early 2007 just before the big bubble burst. I ended up being about 40,000 dollars underwater on my loan because of Michigans serious decline in housing values. We made a descision to walk away from the home and my partner purchaced a forclosed home on a golf course for 80k. This house appraised at nearly 139k, but is outdated. It has potential to hit around 200k once updated. We will get the 8k refund this 09 tax season and plan to do the updates, meanwhile we upgraded homes big time, added almost 800sq ft of home, on a golf course and lowered our house payment 300 dollars a month while qualifying for the 8k. Its a good thing gays cannot marry..lol
My wife and I are in the minority. We lived within our means, didn’t over mortgage our home and paid our bills on time. We don’t qualify for anything, other than being available to pay for all of the bailouts. I use to think there was honor in meeting your obligations, but now it appears that all you have to do is live high and wait on the taxpayer to bail you out.
We bought a 187,000 home in May. We recieved our tax credit in August(it took a good 13 weeks). We purchased furniture and a plasma TV. Were are putting 2000 of it in the bank for an emergency!
Had a house under contract when the law was passed so the $8000.00 was a bonus to me. It let me invest that amount so I have a bigger emergency fund. Hopefully I won’t need to use it and as the economy improves it will increase in value and help my retirement fund.
Like all of these “stimulus” programs, if you work hard and earn a decent living you often can’t qualify for it. If they would just let the market correct itself, then I and everyone else in this country wouldn’t have to pay for everyone else’s careless ways of borrowing and overspending.
Maybe they could offer a stimulus check to anyone who makes a little to much to qualify for the credit but pays through the nose in taxes.
I still rent cause houses are over-priced and this stimulus thing will not help them come down at all, but don’t worry, the market will despite the bailout programs for everyone.
My wife and i Purchased our first house knowing we would get the $8000. We used half of the money to help buy furniture. Saved and invested the other half. I think the program was a great deal.
I brought a 4 bedroom 2.5 bath house for 195000. Thanks for the low prices and low interest rate. 8K tax credit had real impact on my decision. Thinking of doing some modifications to the house, LCD big TV, appliances and also some savings.
My wife and I used the tax credit to buy our first home in a much better neighborhood. Between the additional $8K down payment and the 4.25% 30yr fixed mortgage that the builder offered, we were able to up our purchase price by over $50K with no net effect on our monthly budget.
We were under contract in January so we claimed the credit on 2008 taxes with no issues.
If its 10% then I would receive a $34,000 tax credit? I received $454.00 on a 340K home and our income is over 150K a year. I think my acountant is correct. The poeple getting these credit must make less then the 75/150K.
I was so happy when I received my $8K credit. I bought a brand new 3 bdrm 2.5 bath townhouse where I picked all my upgrades in April…it cost $160K in the end which is great! I filed an amended return to claim the credit this year. I used the tax credit to pay off credit card debt, buy my son a bedroom set and put some aside for emergencies….
I have a sad story to tell. I bought my home on March 14 of 08. The 7500$ amount for home purchases in ‘08 has to be paid back over a 15 yr period. I bought my home 3 weeks before the time frame for this program. My genius of a realtor failed to inform us that if we would have waited for just 3 more weeks I could have had enough money to put as a down payment on a new car. I’ve contacted my local congressman and informed her of this, but she doesn’t seem to understand or listen to well.
That’s weird, Patrick seems to be awful quiet now. Bet he’s calling his CPA to find out where the rest of his money is!
That post couldn’t have been better Patrick, I love when people who don’t know what they’re talking about talk down to others… just classic!
The $8,000 tax credit was a contributing factor in buying our first home here in Missoula, Montana. The market here has softened but hasn’t seen the big declines like many parts of the country. We found a fair price for a house that fits our lifestyle well right now. So we probably would have bought the house regardless of the stimulus. However, our stimulus funds still provided the intended effect of spurring the economy. We used the stimulus funds to improve our new house. We spent the entire amount (plus some) within the first 30 days of homeownership. The kitchen was outdated and worn down. We spent the majority of our stimulus on a semi-remodel of the kitchen. The stimulus infused our local economy with the full $8,000 but it also put us in “spending mode” and encouraged us to complete other projects as well. In my experience, I think the stimulus funds worked as intended. It was a direct infusion of money into the economy, provided extra encouragement to buy a house in uncertain times, and also put us in a mode to spend additional money to continue improvements. We both have decent jobs, putting us in middle class under $100k combined income. We understand that this stimulus money comes from other hardworking Americans, and we appreciate receiving this public stimulus money. We obviously received a benefit that some others might not receive, which of course seems unfair. But we do believe this strategy will help improve the economy for everyone, much like our tax dollar-supported education provided a way to earn more money, pay more taxes, and complete the cycle.
We made the personal choice to try and spend our money on American brands. This may or may not have helped the cause (hard to tell who manufactures what and where the money ultimately goes). In some cases, like the refrigerator, meeting our need took precedence over an American brand (certain size/space requirement).
Here is what we specifically purchased with our $8,000 stimulus check.
$2,000 Refrigerator (Samsung)
$700 Stove (Kenmore)
$500 Dishwasher (Kenmore)
$1,000 Tile countertop and installation
$2,000 Furniture set (American company, but manufactured in China)
$700 Kitchen sink/faucet/disposal (Kohler and Waste King)
$800 Family room window and installation (Milgard)
$300 Kitchen window and installation (Pella)
Thanks, and good luck all!
Joe in Stamford, CT – How is your money losing bind – due to the government and “their banks” falling asleep at the wheel. How about standing up and being a man, and admitting to yourself that you purchased a house that is worth less than what you paid due to the economy and not blaming the governement for all your problems.
Used the $8,000 credit to pay off my car. I now have no car payment, no credit card debt, and a home!
My fiance and I purchased a new townhome. We used went to Lowes a few days before our settlement and bought fridge, washer/dryer, programmable thermostat and fans for every room in the house; all at 0% interest for 6 months. The total came out around $5k. We received the credit and paid off Lowes (still at 0%) and socked the other $3k away for another time.
This was by hands down the best stimulus the govt. provided. But then again, we will see if people can afford their homes in the future. I think we will be just fine, but I worry about others. If they foreclose, it will bring down the value of my new home (scary thought).
In response to the earlier post about the credit only being for 1% of the sale of the home- that is simply incorrect. The buyer gets 10% of the value of the home UP TO $79,000. A home bought at $80,000 or more will get $8,000. There are also income limits, I think $75K for individuals and $150K for couples. Anyway… my husband and I were eligible for the credit and used it to pay of our car loan. It’s nice having one fewer payment to make each month!
I bought a house last fall in Michigan and got back $7000 ($70,000 house) It’s my first home and the money has certainly come in handy. So far I have put in all new energy efficient windows and am currently finishing two new rooms in my basement. I am able to do all of this thanks to the credit and some hard work (I provide the labor myself).
Being in the banking industry, I took full advantage of a program that I will probably end up paying for in the future through taxes… It really didnt entice me to buy a home, it was just great timing in regards to where I am in my life and the fact that I needed to get out of the “rent race.” I dont really need the 8k that bad so I am just going to file it with my 2009 taxes in March of 2010.
FYI. For those who are quoting parts of the 8k credit program on this site, make sure you get your facts straight.
This website should help with many of your questions about the credit http://www.federalhousingtaxcredit.com
I purchased my existing home some 10 years ago, got married about 8 years ago. The house is a small 2 bedroom house without a garage. My wife never owned a home before so I was hoping to sell the current home and upgrade and benefit off the 8k stimulus money. Unfortunately neither I nor my wife qualify for the stimulus because I already own this house. Mind you we only make 40k a year combined so we are not looking to upgrade anymore since we will not get the 8k. I learned a lesson from all of this. If you are a responsible person that never went bankrupt, worked all your life and paid your bank paiments, you will not get a bail out.
We had planned on buying this spring anyway, figured the DC metro market was near bottom, and with a VA loan, we had 0 down @5% for a 30 year fixed, which is hard to beat. When they announced the tax credit, I was very excitied. Then I did our taxes. Turns out my wife’s job didn’t deduct state taxes AT ALL, so we ended up using the whole credit to fill that hole. Still bought the house, and after all was said and done, we got a good deal, on a great property, but the $8k would have been nice tohelp cover moving costs and all the painting we did.
My husband and I would have continued to rent a cheap apartment for another year if not for the first time home buyers credit. When we finally decided to take the leap, I adjusted my withholding and was able to save cash quickly. With our additional savings, we are replacing the old gravity furnace with a high-efficiency furnace and finishing the attic, and buying an old-fashioned manual lawnmower. We’ll recoup much of our savings when the bank reimburses us with our energy efficient mortgage funds, which are currently in escrow.
My wife and I were talking about buying a house because of the historically low interest rates and the decrease of the prices of homes here in Seattle to something approaching reasonable.
We ended up getting a screaming deal on a new home (crazy low 3.875 fixed rate with no PMI) which although was at the tip top of the price range we were looking at and drained most of our savings, we can look forward to refueling a little bit thanks to the tax credit. This took a lot of the worry for “what if” off of my mind so I felt we could make the move. It was a key factor in us buying our first home.
Correct me if I am wrong but the $8k is a great investment for tax payers. It gets renters to buy a home and start paying property tax, spend money on upgrades and upkeep and all the other expenses that go along with home ownership. In just a few short years the gov’t/taxpayers will have made there money back and start seeing a return on the investment.
We closed on our home and filed for the credit in June. We are still waiting for the IRS to process and release the funds. We were told it may be another 12-16 weeks because they are “freezing” many returns for review because there have been many fraudulant claims filed.
I slipped through the cracks. I own a condominium in another city, but had to move last year due to unemployment. Now I am eating over $1,000/month because rent doesn’t cover the expenses on the old property, which is also under water and cannot be refinanced because it is not an agency backed loan. My wife and I bought a new property in our new city and did could not qualify for the $8,000 credit. I understand that the idea behind not allowing existing homeowners to benefit was meant to keep them from selling their existing property to mitigate the risk an offsetting transaction to inventory, but so far I have been a good taxpayer, supporting the governments programs with my dollars; meanwhile I am in a money losing bind due to the government and their banks falling asleep at the wheel. I have an old property that I should just walk away from and I would think that there are many others that will do the same, sparking another wave of foreclosures if the government and the banks do not take additional steps soon.
To adam in Atlanta
Thanks for your “tax money” I didn’t realize that you were the only one financing the stimulus. Do you think you could spare a couple trillion to get our country out of debt?
Patrick McCoy, the tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000 and not 1% as mentioned by you in your post !! So it is not 800K home but a less than 80K purchase price will take one into a less than $8,000 credit.
Patrick –
I don’t know who did your taxes but the Tax Credit is 10% of your purchase price and phases out at $75k for single and $150k for married couples.
Also, you can ammend your 2008 taxes if you purchased your home prior to 4/15/09. Otherwise, you can try to take it in 2009 depending on your income.
I used my credit to help with the renovation that was required on the foreclosure I purchased. I also was phased out due to income restrictions slightly.
This is a good tax credit but people making more then 100.000 a year should not be able to clam the credit bail out and takeoversall for the rich thats not fair ss or the disabled
should not have to pay for this wal street got there selfs in it they should have to get there self out of it.Statess are cutting child benifits but kids matter remember that world
I purchased a 3 bedroom, 2.5 bath in Raleigh, NC. Not so much for the $8k, but because of the lower home prices and lower interest rates.
I enjoyed the 8k. We bought a small 3br house for 160,000 and with the money
built a privacy fence
Cruise to Bermuda
save 2k
invested 2k
so all said any done a nice stimulus to the economy and some savings in my pocket. Of all the stimulus crap out there this was by far the most effective…since most new homeowners need to do something to there new house….
My wife and I bought a Short Sale in December of 2008. We upgraded from a small 1950’s manufactured home and bought a 4 bedroom 2 1/2 bath for 207K. At the time there was a $7500 tax credit that we applied for (before the $8K was available). The difference is that we have to pay back the full $7500 over 15yrs. We applied for it in last years return and received it with the rest of the money that we got back. We put 20% down so we are using the money to make repairs.
Patrick McCoy Irvine, CA: August 25, 2009 1:38 pm:
“After reading the other comments, I believe there’s is a huge miscionception with the 8K tax credit. First of all, its up to 8K and is actually 1% of the home value. For example; we bought a townhome in Irvine, Ca for 340K which last sold for 600K, so we’re eligible for a $3,400 credit, not 8K.”
Patrick its actually 10% not 1%. Do your research. That means it would only apply if you were buying a house less than 80K.
My Fiancee and I bought a home in Florida last April. We were extremely happy to be able to purchase a home which just one year prior we would have been unable to afford. Since we were planning on buying a home anyways the $8,000 didn’t play much into that decision. Still, it was a much appreciated extra bonus which we used towards new appliances and a paint job.
To Patrick McCoy Irvine, CA, it’s actually 10% of purchase price up to $8K. So you only need to buy a $80K house to get full benefit.
Also, your can qualify income based on either 2008 or 2009 tax year. I.e., if either your 2008 or 2009 income is under the limit, you qualify (if it’s 2008, file an amended return after you buy the house, if it’s 2009, wait until early 2010).
I invested about $3000 of the tax credit in DOW companies in case of a rainy day. The rest I used for improvements to the house. I bought a house using the 203(k) loan that FHA offers. Most of the homes in my price range needed work. Even though I had a loan that helped me with improvements there were some energy infrastructure improvements that I thought would help lower my monthly utilities bills. So far my gambles have paid off. I pay half in energy that many others do here in Phoenix.
To K. W. Santa Ana, Ca, I’m no CPA, but you’d still be able to get the $8K credit based on your last year’s income by filing an amended return for 2008.
My wife and I just could not pull the trigger as houses here in San Diego in the half million to 350K $ range that would allow us a reasonable commute. The supply of houses are not very good houses. Few have been updated in the last couple decades. I think sellers haven’t adjusted to the new reality of it’s a buyers market and they really need to update these older patio homes to be able to sell them to buyers with any expectations beside buying a footprint with an idea of later completely remodeling or completely razing the house and starting over. And when you are talking that much money what is 8K ?
Hope you all enjoyed my tax money! Preliminary research is showing all the tax credits are going to those who pay no (or negative) taxes!
Are you kidding? I am on Social Security pension and because inflation is dead we are getting a pay CUT next year. Billions to the banks and nothing for the needy and poor.
I have been waiting 17 weeks for this $8000 that will stimulate the economy. I can’t spend the money if I can’t get it.
I was originally hoping to purchase a home next year, but with the this year’s tax credit and low interest rates, I decided that waiting could potentially cost big bucks. So, I purchased a modest 3 bedroom, 2 bath. The credit will allow me to pay extra on my mortgage and re-stock my savings account.
After reading the other comments, I believe there’s is a huge miscionception with the 8K tax credit. First of all, its up to 8K and is actually 1% of the home value. For example; we bought a townhome in Irvine, Ca for 340K which last sold for 600K, so we’re eligible for a $3,400 credit, not 8K.
Secondly, there are income requirements for this program. If you make over 150K the credit amount phases out. In our case we make close to 200K, which you need to live here. When I mean phases out, I mean really phases out. Our credit ended up being $454.00. What a great stimulus huh?
My realtor pushed this program like crazy, but luckily I did the research and knew beforehand that it was all propaganda for lower income poeple to purchase homes. My realtor was shocked as I’m sure most of them never read up on the credits. For instance, what person could afford a 800k home and makes less then 150K? This would be the qualifier for the full 8K.
The state of California had an additional 10K in home credits on the line, but when my accountant filed for those they just happened to discontinue them. Good times.
I guess the moral to the story is buy a house because you need it for your family. Its something you can afford and its not beyond your means. Buying a house for something more then that could be trouble.
Why is it that only first time home buyers get a credit, or if it has been within 3 years since you bought a home. What about all the people out there that are keeping up with monthly mortgage payments – but struggling?? I could really us $8000 to do work on my house. I wonder what kind of help I would get if I quit making my payments. Any thoughts??
My wife and I used the $8K tax credit on installing a new roof for our home we purchased in March ‘09 in Walnut Creek, Ca. Since this house was at the top of our budget, without the tax credit, we likely would’ve had to pass on making the offer since a new roof was a necessity. All in all, the tax credit was instrumental in us securing our first home.
It seems to me that the people who complain about getting their credits late are the same ones who complain about government being too big. No government, no service. Period.
My decision to purchase a house wasn’t motivated by $8000 credit. It was based on the downturn in the economy and my personal position in life. I planned 1 year ago that I wanted to buy a in early 2009 after studying the market. I also monitored bond prices and interest rates and was able to lock in the morning at 4.75% 30 yr fixed when I heard the bond rates were going to jump on Fed’s action. So I timed the market.
I also shopped extensively and pitched lenders against each other to get the best package at that time.
The $8000 – I looked at it as just extra money into Savings and my 12 month safety net in case I loose my job.
No. My wife and I earned $35K last year when she was a law student and I was an event planner. This year, I was laid off and my wife will earn $170K, bumping us out of the income qualifications. We live in a tiny apartment, pay a lot in taxes and insurance, and are about $240K in student loan debt. We’re hoping for a revised sliding scaled tax benefit for first-time homebuyers to be passed next year. In the mean time, we’re trying to save. The sad thing is that with our debt obligations (we no longer qualify for the student loan interest tax deduction), it takes us about 8 months to save $8K.
In Boston the income limitation on the credit is a joke. How are you suppose to buy a 300K+ house with a salary of less than 100K?
I WAS IN THE MARKET TO BUY A HOUSE LAST SUMMER. HAD BEEN AT MY JOB FOR 4 AND 1/2 YEARS. GOT THE FINANCING NEEDED, ALL OF THE PAPERWORK WENT THROUGH LIKE A CHARM WHICH IS ALMOST UNHEARD OF! GOT LAID OFF 5 HOURS AFTER CLOSING, AND GOT MY TAX CREDIT IN MARCH, SAVED EVERY PENNY OF IT. I HAVEN’T SPENT A DIME AND I PLAN ON KEEPING IT IN THE BANK IN CASE ANOTHER ISSUE ARISES LIKE THIS AGAIN.
TYLER – 24
In fact i did purchase a condo in Mass. and filed for the 8k credit, however it wasn’t the only driving force in my decision.
It seemed like a once in a life time sort of scenario, and i wanted to take advantage of it instead of using my VA benefit. (which translates into zero down/zero cost after folding all costs into the principle).
With the tax credit, I simply paid for all of it, and then filed the forms to get my 2008 taxes amended. (they said 3 months,so sept. will be the target month for the credit to arrive) My investment costs will be covered by the tax credit with a little to spare!
I am also trying to help my daughter purchase a home since I feel it is an opportunity that she may not see in her lifetime again (i have seen multiple real estate swings so i understand the downward slope!) and I understand the value in taking action now while she is young (23).
I was able to purchase a house in Philadelphia, PA in part due to the tax credit. I will be using the money to help pay for renovations to the house – which are needed as the house was unoccupied for a year due to a foreclosure on the previous owner.
I bought a place in April and had only 10% to put down. I have great credit so the banks were not a problem – the PMI companies were. So after having to switch lenders (due to the slow response of the one I was working with), two weeks from closing, I ended up getting a loan through an FHA lender which actually was a surprisingly smooth process.
As for the 8000, I applied for the credit in June (as an amendment), checked the status with the IRS last week – it is still “in process” and was told to expect a 12-16 week turnaround.
I signed a contract to have my house built in June and then closed a few months later. Between the time I signed the contract and closing, I read about a new $8000 stimulus ($7500 at the time) available. It did NOT influence my decision to buy the house at all since I had already signed the contract to build. Unfortunately it was more of an interest free loan that I have to pay back. Overall, it sure convinced me to buy more expensive luxuries for the house than I had originally planned. What a wonderful stimulus… too bad I don’t have a clunker to trade in these days…
My wife and I took advantage of the credit. We had just relocated back to Baltimore from Alabama and both had jobs in Baltimore City. I had a post-doctoral position doing research at Johns Hopkins and she was an RN who found a position at the University of Maryland Medical Center. Since both positions were in the city we decided that it would make the most sense to live in the city so that our commutes would be manageable. At first we rented a house in the part of the city known as Canton. This area is known as being a place where young people come to live. It has shopping, bars, restaurants, and other activities like community sports leagues (BSSC and KLOB). We looked at houses in Canton for about a year before we bought. At first we looked at houses that were turn-key ready. After searching for months, a friend of ours told us we should think about rehabbing a house. We found a contractor that was willing to work with us and began the process. We bought a rowhouse that was right where we wanted it and got a great deal because of the market and also because we got the $8000 back from the government. Since then we have been rehabbing the house and are also taking advantage of a Historic Trust cedit that gives us money back for rehabbing the house in a historic manner. We also took advantage of a property tax credit here in Baltimore city along with the Energy Star credits being offered by the government. Although the $8000 from the government was definitely a factor in us buying a house now, the other credits that are out there are also of tremendous help to making this purchase affordable. In the end we were able to buy a not so nice rowhome at a deep discount, rehab it, and have something that is ours and that no one has ever lived in. It was also cheaper to do everything this way rather than buying a turn key property because of the credits we qualified for.
NO!!! We bought a home in April, Paid full market value, But since we bought from my mother we can not get the credit, WTF! No one can tell us why other than we MIGHT cheat the government. If i wanted to do a scam i could buy from a co-worker or friend and that would be ok, any ideas?
The IRS says it will take 8 – 12 weeks to process my amended 2009 return. So I have not gotten it yet, but the plan is to break it evenly into three parts. 1. Payoff some debt 2. Savings 3. Home improvements.
Well its kind of hard to buy a house when you are laid off and the FEDS put me out of work.I was on a 5 year Ethanol project in N.D. when in all there wisdom the pulled the federal money from the project for the bailouts.That was last September.Still haven’t been able to find work in the construction industry.Got rid of my two GM cars when GM wouldn’t let me go from a lease to buying the autos to lower the payments so i said come and get them.I now have two clunkers and will never and i mean never buy another gm auto. So the great GOVT tax breaks are a joke we need jobs before we can buy good to get the tax breaks.They need to come live in the real world for a while.
We closed on our house in April, but we offered in January, just as talk of the 8000 credit began. For us the 8000 was an incentive to buy a house which may have needed an upgrade, or an amenity which we would not be able to afford otherwise. We had found our dream home, but it didnt have Central Air and needed new windows. So we bought that house, knowing that the 8000 would go a long way to both those upgrades. However, life happens (as it always does) and we got engaged two weeks ago, so now the 8000 is our wedding budget! We would not have been able to afford a wedding after just buying the house and using almost allour savings for the 20% downpayment required to get the best interest rate. So the 8000 provided us an incentive to buy, and now a way to afford a wedding. its been a big help!
I purchased my first home in June of 2008 and managed to spend the entire tax credit on the house.
Within a few major rainfalls it was obvious I had a flooding problem in the lower level. The tax credit money went to building a retaining wall outside, replacing carpets and installing gutter guards as clogged gutters appeared to be one of the main contributors. Additionally I installed some insulation in the attic and was forced to replace the washing machine.
Bottom line was the $8k went right back into repairing the house within the first year.
I am single, professional woman and I was saving for a house for a few years before this. I am a conceitious shopper, watch what I spend and have a great credit rating.
I ended up buying a beautiful 3 bedroom ranch in small bedroom community. I like to think that it has investment potential and in 10 years, I can trade up to my dream home. However, even if it stays my home it’s a very nice property. My favorite part of the house is the family room with the fire place. I paid a fair price for it given today’s housing market.
The $8,000 credit did not really affect my purchasing decision other than motivate me to close before December 1. I see it as a bonus. I filed an amended tax return and am using some of the money to decorate to recarpet a part of the house (aomething I might not have otherwise done)and make early payments on the mortgage.
I wasn’t looking to purchase a property yet but with the economic downturn and the benefits of buying, it was tough to say no. My girlfriend and I started looking for our next apartment and after looking at how much we’d be spending in rent over x years and the benefits we would get by purchasing a condo for now and building equity, the decision was a simple one to make. We are closing on our condo in September and are moving into a place where the mortgage will be similar to our rent, and we get to reap the benefits of receiving the $8,000 tax credit and take advantage of the low property values and good deals currently out there. This is a great time for first time home buyers, but they also have to be ready to make this purchase and be realistic about the properties they purchase; they need to make sure they are affordable.
Yes, we recently purchased a home to get the $8,000 credit as first-time homebuyers. Our decision was motivated by the credit, but also by the 5% mortgage (30 year fixed) we were able to obtain, and the low home prices in the suburban Chicago market.
The largest problem we ran into was the 4 month wait for a short sale to be approved for us to buy. Banks are not working to speed up the process or get rid of unoccupied homes quickly, bogging down a recovery.
Of course, it also takes roughly 8-10 weeks to receive the credit, so we’re eagerly awaiting our check in the mail. We plan on using it to further help the economy by purchasing new furniture for our new home.
The $8,000 first-time homebuyer credit helped me and my fiancee out a lot. We were thinking about getting out of our apartment, but couldn’t come up with the downpayment fast enough, so we used the $8,000 for our downpayment plus some and bought our first house, which is a new construction. In the end, through money from the seller and the tax credit, we ended up only paying $500 out-of-pocket for our new house. If it was not for this tax-credit we would still be living in our 2 bedroom apartment with no backyard and paying rent to a landlord. I think it was a great idea and many of our friends have taken advantage of the tax credit as well.
How can you buy something with money you don’t have. I filed an amended return almost 3 months ago and still haven’t received it. The IRS told me it was in process and the new wait time is 16 weeks for amended returns… Ridiculous.
My wife and I live outside Washington, DC in Silver Spring, MD and we bought our house January 5. We used our return to finance a micro-loan helping some students with their school locally AND we were able to work to start a co-ventured foundation, “the Global Access Foundation” globalaccessfoundation.com through which we were able to give funds to fight poverty, help refugees, work with medical, education and more in Kenya. The effect has already been large, but we see there is so much more to come from this story. We were so thankful to have been able to get a house for 43% off the value. So, we decided to do as much as possible to help others with our return. It was our way of giving back!
renaissanceofasoul.com
Hi,
I was able to use the $8,000 credit to buy a multi-family in portland maine.
I am 26, and work in the healthcare industry using Electronic Health Record and insurance data.
I have a good salary, but didn’t want to withdraw from my retirement funds for my downpayment.
The credit allowed me to purchase a multi, where my tenants pay the bulk of my mortgage, allow me to build equity and keep my retirement on track.
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I bought a Macbook Pro, and used $2,000 to make some changes to the house and the rest went to savings/bills.