Tax credits are not what 1st time home buyers need, they need money at the time of the sale.

That tax credit would be nice..Great incentive to buy this year.

Thanks for the comments.  While it sure would be nice to have someone give the buyer $$$ for a downpayment, I believe that this credit can have the same affect if they adjust their withholding and set aside the savings.  With FHA downpayment assistance programs, the amount of $$$ needed for a home purchase is already approaching $ -0-.  This credit will help them with all the other items needed when they move in so they don't have to max out credit  cards.  Have a great day!

Angelo, I think I will consult the tax professional.  Because, something just doesn't seem right with this part of the bill.

The tax 'credit' is great, but with the elimination of DPA's and a required increase in down payment from 3% to 3.5%, I don't think this bill is geared toward helping first time home buyers. 

I just bought a house in mid-March.  How did they determine the date of April 9th?

I did not notice the reference to the DPA or the increase in the FHA down payment to 3.5%.  I guess it is another case of the politicians showcasing the good and trying to slip the bad under the rug.  Thanks for the comment.  Have a great day!

andrew, if you bought in march, you probably do not need the additional standard deduction and did not need the interest free loan to buy, so it is unlikely that they were trying to stimulate or reward someone that had already purchased.   

i have not seen the final bill as signed by the president but i am sure that the reason is something other than making sure that you do not qualify.  i would check with your tax advisor to see if there is a pro-ration that may help you.  good luck.

Andrew, I think you asked a valid question.  I don't know why Mr Cusinato has to be so sarcastic.  If the deadline was retroactive to April 15th it would be easy for the layman to correlate it to the deadline for filing taxes.  April 9th may be a significant date but I don't know what that is either.

We plan to buy a house in early 2009, so I believe we'll qualify for the tax credit. However, I'm confused whether the tax credit in our case will be for the 2008 of for 2009. In other words, if I decrease my withholding for the rest of this year, I won't have proof that I'd bought a house...but I'm still buying a house within the timeframe the bill suggests, so I should get the credit...right? Please help...

SK - Usually the credit is linked to the tax year that you completed the action targeted for the credit - in this case the 2009 purchase  of your home.   Remember, this is to be paid back over 10 years so the net impact  on 2009 tax may be $7500 less the pay back amount, if any for 2009.  Because this bill is still being explained, I would invest the time to talk to your tax advisor to make sure you meet all the requirements for the credit.  At the same time, I believe your advisor will help you implement the W-4 adjustment I mentioned in my blog.  Good luck and do not be afraid to yse a mortgage broker for your purchase.  Have a great day!

K and Andrew, If my comments appeared to be sarcastic, it stems from the constant efforts of our political leaders to try to spin their efforts in a way to buy votes.  If their efforts would have given better signals to the lending community, perhaps the problems we all face would have been easier to solve and not require larger deficits.

Regarding making laws retroactive, while it is possible that they will do this, I find it unlikely just as earlier tax changes impacting depreciation and R&D tax credits held firm to mid year dates for qualified actions.  Have a great day!

How will this work for a first time buyer who closed June 30th or will close August 22nd?  The same way?

Great post.

I had read that in order to qualify for the credit, a married couple had to have an income less than $150,000 combined. Do you know if that means gross income, or adjusted gross income?

Mike, Sorry I can not give you the answer.  Find a tax advisor that you trust and suggest that they make a presentation at your office or for the chamber or other group that you belong to.  Better yet, team up to make a presentation for First Time Home Buyers.  This will be a great way for you to generate some traffic and perhaps make some money.  Have a great day!

David, The answer is not even limited to your options.  It could be taxable income.  The othe question could be that if combined income exceeds the limit will you have the option to at least receive 50% if one of the spouses' income is less than $75,000.  Read my previous post for a suggestion as well.  Have a great day!

Does this credit apply to investment properties or does it have to be your primary residence?

Steve, Good question.  I believe that it was proposed for primary residences but it could have been adjusted to allow first time buyers to include an investment buy.  Again, find a good tax advisor. that will assit you in determining the basis for your investment purchase.  Have a great day!

Mr. Cusinato, your comments ring so true today.  I'm a novice to all aspects of the market/housing and was giving the pros too much credit thinking they had a clear reason for their actions.