SHOW ME THE MONEY!!! $8000 First Time Home Buyer Credit

By
Mortgage and Lending with loansnjobs.com and EasyWayToShop.Com

They said we can offer it. They said it was available. They said "it's a good thing". They said its here! Please correct me if I am wrong. We see nothing!! Does it really exist? Seem lots of lip service and little else.

 As of today's date, of the 100's of lenders we communicate with, not a one of them has this credit to offer.

 Sure, the current administration says it's so. But not the lenders. What many may not realize is  although our government has approved this "program" they have left it up to the individual "lenders"/"lending industry"  to develop the programs to offer this credit.

 This $8000 has been approved to be used towards the down payment of a new home for a first time home buyer in anticipation of the tax credit and subsequent refund to the borrowers.

Ha! The lenders have been left with the task of putting together a program that will allow them (lenders) to "lend" $8000 to the borrower to be used towards the purchase with repayment due upon receipt of the tax refund -  Lets just say the lenders have not been lining up!!! As of now, not a one of the lenders we have spoken with have introduced a program that would accommodate this "credit"

 This whole program is simply not present in our lending community today. Maybe someone should tell our, well, ....................................... you get the picture.

 This is working just about as well as when this same "group" of "thinkers" told the American people that if you need help with your house payments, best to get 3 month's behind otherwise we can't help you. That worked well. Lenders always feel great about lending to people that are 3 months behind.

Next your going to tell me someone will give me $4500 for my gas guzzling car made no later then 1984 in trade credit towards on a new one with better gas mileage. Don't say no one ever warned us.

 

Comments (1)

James Wirth
Everett, WA

Jeff, thanks for the post. All good points and everyone is running into the same thing. Even government agencies who have even less restrictions on this than lenders, are not participating in the program. For example, Washington State Legislators allocated $25 Million to be used for the purpose, but the agency responsible for distributing the funds -- the Washington State Housing Finance Commission (WSHFC) said they were not able to extend the loans because they required the IRS to re-pay them from the home buyer's tax refund and the IRS won't allow it. Same issue with the lenders, no one is willing to 'front the dough' unless they get paid directly and it just doesn't work that way.

Luckily, home buyers can file a 2008 amended return and claim the tax credit. Granted they'll have to wait 4-6 weeks or whatever the IRS is quoting currently, but at least they don't have to wait until 2010. Of course, the closer we get to the end of the year, the less impactful this will be.

It will be interesting to see if the refund is extended. So far it doesn't seem likely, but if it is I'm guessing it'll be last-minute. Stay tuned! --James Wirth

Aug 24, 2009 11:25 AM