Is FEAR keeping you on the fence about buying a home? Realtors hope a stimulus offer from Uncle Sam will help you make the move. But, as I talk to other agents it seems they're starting to notice an increased interest.
What is holding people back?
A big fear. Fear of losing their jobs, fear of the economy in general, fear of what's going on.
FEAR Is the perfect emotion!
Politicians use it all the time. In fact, I have seen special interest groups use it to the "max" to invoke a fear reaction to get an exaggerated response. I am not saying the government is using fear to prevent people from buying homes, but I am saying fear can move mountains.
Is the government helping the housing industry?
Yes, I think now, they are trying to stimulate sales for the first time homebuyer. But, it can be so confusing and people who bought before Jan. 1, 2009 are sounding off as being resentful. But they really shouldn't, because if the stimulus wasn't in place at all, their home values could possibly be falling even further. The $8000 credit helps stabilize the home values.
So who actually qualifies for the $8,000 tax credit?
The government is giving first time home buyers or people who haven't owned a home in three years, $8,000 if they buy between January 1 and December 1 of 2009. It certainly does give hope for what's happening in the housing market. It really would have helped if it would have applied to all home buyers.
Here's how the tax credit works:
1) The home you buy has to be your primary residence, it can't be a second home
2) It pays $8,000 or 10% of the purchase price, whatever is lower. If you buy a $65,000 home, you'd get $6,500.
3) The credit pays less if you are a single buyer who makes $75,000 or married buyers who make $150,000 or more.
4) You don't have to pay it back if you live there for three years or more.
Did you know you can amend this year's taxes?
If you already did your taxes and let's say you bought the home today you can go back and file an amended tax return and get the money now.
Example please..
If you owe $3,000 and buy a house, you'd get $5,000 back. If you buy a house and owe nothing on your taxes, you'd get the full amount of money.
No Down payment credit
Can't be used as a down payment because you can't get it at the closing table but you certainly can get it very soon after purchasing the home.
This is the time to buy, with historically low interest rates.
*Building Your Own, Pre-fab and Mobile Homes
If you're going with a pre-fab, or Design home type of purchase, builders say to qualify, you have to be living in the home by December 1, 2009. Mobile homes have to be on a piece of property, not in a park. If you want to build a home, you can get the tax credit, but you have to close on the sale of the home with your contractor by December 1, 2009. If you own land and are acting as a general contractor, I believe you have to be living in the home by Dec. 1, 2009. *
*Check with your accountant and state laws for building your own,to get the credit.
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