Ask Experts Questions for FREE Help !
Ask
    omega_red_08's Avatar
    omega_red_08 Posts: 110, Reputation: 3
    Junior Member
    		  
    #1

    Jan 16, 2009, 10:28 AM
    First-Time Home Buyer Tax Credit
    I was wanting to get opinions on the First-Time Home Buyer Tax Credit. I've looked over the website and it looks to be just a loan from the government. I was wondering if any one has heard more about this. Like, do you think there would be long term problems from taking this or is it a good thing to take. I know it's optional but I'm trying to decide if it would be best to take it and pay some bills off or not even take it at all.
    twinkiedooter's Avatar
    twinkiedooter Posts: 12,172, Reputation: 1054
    Uber Member
    		  
    #2

    Jan 16, 2009, 12:10 PM

    What you've read is correct. It's basically up to you if you want to take the $7,500 now.
    omega_red_08's Avatar
    omega_red_08 Posts: 110, Reputation: 3
    Junior Member
    		  
    #3

    Jan 16, 2009, 03:48 PM

    I guess my main questions are:

    How do I make the payments every year?
    Will the government put a tax lien on my home for the loan?
    Can I pay it back early?
    twinkiedooter's Avatar
    twinkiedooter Posts: 12,172, Reputation: 1054
    Uber Member
    		  
    #4

    Jan 17, 2009, 08:17 PM

    I work for a manufactured homes dealer/installer and I discussed this topic with my boss in great detail one day. He's been in the business as well as the mortgage business for years and in a nutshell he said he wouldn't take the tax credit as it has to be paid back over a period of years. I'm not up on just how to pay it back early. You might want to call them up and ask them before you take the plunge.
    stevetcg's Avatar
    stevetcg Posts: 3,693, Reputation: 353
    Ultra Member
    		  
    #5

    Jan 18, 2009, 06:27 AM

    You pay it back in 15 installments over the next 16 years (skip 2009). Basically all they do is tack an extra $500 ( or 1/15 of your credit) to the income taxes owed every year.

    I am taking it. Its an interest free loan. In essence, I can take the cash, drop it in a high yield (or what passes for high these days) bond and just pay back the principal and keep all the interest. If you actually save the money (or pay off high interest debt) it could amount to significantly more than the 7500 loan.

    I don't know how to pay it back early either, but it is interest free, so why would you?
    omega_red_08's Avatar
    omega_red_08 Posts: 110, Reputation: 3
    Junior Member
    		  
    #6

    Jan 18, 2009, 01:54 PM
    Thanks for the responses.

    I read on a site somewhere that basically the way you pay it back is with your taxes. For example, in 2010 if you get a 700 dollar refund and you took the tax credit, the government would keep their 500 dollars. If you ending up owing the IRS, the 500 dollars would be added to the debt.

    I have thought about getting it and saving it. Maybe in a saving account or CD, but I also am reserved to, as twinkiedooter says, "take the plunge." I still feel that the government isn't telling us everything. Anyone know where to find the small print on this?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How do you find out about first time home buyer programs [ 5 Answers ]

I live in the Chicago area and I am looking for 1st time buyer programs to purchase a home?:confused:

First time home buyer [ 1 Answers ]

I have bad credit and never owen a home what are my chances?

First time self employed home buyer ( Ha I KNOW!) [ 7 Answers ]

Hello, long story short... 25 years old, self employed filling second year w2s for the business this week. Anyhow since the business is new profits are low. Although I can afford the mortgage for which I am applying... I am applying with my girlfriend, who's credit is decent about 680 or so.....

First Time Home Buyer [ 4 Answers ]

Can you help me buy the house I live in from my parents. I moved into my Grandmothers home with my children after a divorce. My Grandmother has passed away since, and the house is in my Mother and my Aunts name and I pay them rent. I have visited this subject with them and they want to help me out,...

First Time Home Buyer [ 1 Answers ]

I am looking into buying a home for the first time and I'm not really sure how the first time home buyers program works. If you have poor credit (550) are you still eligible for the first time home buyers program or is that score too low to get a mortgage anywhere??

View more questions Search