First time home-buyer stimulus ending soon- can I get in?

[fiveSD]

Just curious... if I were to find a house I liked within the next week, do you think I would be able to close in time (Dec 1) to take advantage of the government money? I probably have cut it too close, but a few things have gone in my favor and may allow owning to become a reality soon (now). I'm just wondering if it's even within the realm of timing possibility or if I should just relax and give up the idea of a Dec 1 closing deadline.

[Talenos]

Don't rush buying a house.

[fiveSD]

It's not really a rush. There are a bunch of places for sale in the area I'm looking at, and since I plan to purchase a condo for the short term I imagine I could find something to my liking.

I'm really just asking if I can get in before Dec 1 if I act more dedicated to the cause, or if that's unreasonable.

[Halt! Hammerzeit.]

(1) Banks are backed up like hell right now, but I'm sure they'll be more than happy to get your business.
(2) Real estate agents are acting like dicks because of the rush of buyers. Can't wait to see their faces in Jan/Feb.
(3) There's a rumor that they might renew the credit for next year, even extending it to $15k.

[Bullshit]

I think closing times have been up to 60-90 days.
Is this credit the one that you get the money down or off the amount of the mortgage or just a tax credit?
if it is a tax credit, are you likely to see any money if you don't really owe taxes and likely to get a refund anyway?

[Talenos]

if it is a tax credit, are you likely to see any money if you don't really owe taxes and likely to get a refund anyway?

You sure you know how taxes work?

[Bullshit]

if it is a tax credit, are you likely to see any money if you don't really owe taxes and likely to get a refund anyway?

You sure you know how taxes work?

I'm not well versed in accounting/taxes to that point. I figured if someone made under 30k and the taxable income was less than 10k, you would most likely be getting money back from the fed and the most you could cancel out would be a few k or nothing in a year.

example: tax rebate is a refund of taxes owed, but you don't owe anything....

I'm not really sure....I bow to your CPA/TAX greatness....

[Pesto]

I'm sorry. What?

[Talenos]

If you don't make enough money to pay any taxes you might have a hard time getting a loan in the first place.

[caddymac]

fiveSD, the housing market is being artificially propped up by $8k right now. In about a month or so, the very same house you were looking at will sell for at least $8k cheaper (if not at a LOT more of a discount).

[Alice Ayers]

I don't think that's true in my hood.

So, now that I'm in MN, in which part of the twin cities are you looking?

[caddymac]

So, now that I'm in MN, in which part of the twin cities are you looking?

Anywhere that you aren't???


Oh snap!

[fiveSD]

looking around the WI side, since I like the area more. Property taxes are higher but selling prices are lower (along with income taxes) so it tends to balance.

caddymac, after reading more and doing more research this past weekend I completely agree. I think I will be able to get a better deal if I buy this winter than if I try to go for the Dec 1 credit. will keep you all posted... for now the hunt continues.

[fiveSD]

also Bullshit it's $8k straight to the bottom line. as in, if I owed nothing to the gov't, they would return me $8k. If I owed $1k, they'd give me $7k. if I had a $1k return coming back to me, they'd give me $9k.

at least, this is my understanding...

[Bullshit]

also Bullshit it's $8k straight to the bottom line. as in, if I owed nothing to the gov't, they would return me $8k. If I owed $1k, they'd give me $7k. if I had a $1k return coming back to me, they'd give me $9k.

at least, this is my understanding...

I still think it is too good to be true, but that would be really great! I'm not buying a home this year so I won't be trying it.

If anyone on here went though the process speak up...like I said before I'm not versed in tax code.

Does this work the same for energy credits...or is that a whole different animal?

[Bullshit]

Does anyone have a fear that artificially propping the system again is just setting us up for another fall in a few years? How many people can only get a house with the tax break and if the economy still sucks next year they will be f'ed

[Pokaris]

Does anyone have a fear that artificially propping the system again is just setting us up for another fall in a few years? How many people can only get a house with the tax break and if the economy still sucks next year they will be f'ed

You mean like the 2 new car sales they had in the month following cash for clunkers? Yeah it will happen here to.

[fiveSD]

I assume part of that propping will help prices fall after Dec 1.

Although I have no proof, I like to think that the house purchase is a much larger decision than the car and that people pushed forwards a home-purchasing plan for the $8k but didn't devise a plan solely due to the money. The same could be said for the car purchase, but the amount of money is easily an order of magnitude larger. We will see.

Isn't there a second round of ARMs coming up too?

[Halt! Hammerzeit.]

^ Read this and cringe: http://money.cnn.com/galleries/2009/rea ... ers/5.html

[daoist]

Winter is a buyer's market.

[White Thunder]

also Bullshit it's $8k straight to the bottom line. as in, if I owed nothing to the gov't, they would return me $8k. If I owed $1k, they'd give me $7k. if I had a $1k return coming back to me, they'd give me $9k.

at least, this is my understanding...

You are right. When we did our taxes this past year we simply selected the tax credit option and it gave us the money. Of course I have to pay it back bit by bit over the next few years unlike anyone this year

[fiveSD]

(3) There's a rumor that they might renew the credit for next year, even extending it to $15k.

Let's get this cooking!

But really, does anyone have any insight on if this will be extended past Dec 1? My assumption is no, but I can't tell anymore.

[Dragon]

also Bullshit it's $8k straight to the bottom line. as in, if I owed nothing to the gov't, they would return me $8k. If I owed $1k, they'd give me $7k. if I had a $1k return coming back to me, they'd give me $9k.

at least, this is my understanding...

I still think it is too good to be true, but that would be really great! I'm not buying a home this year so I won't be trying it.

If anyone on here went though the process speak up...like I said before I'm not versed in tax code.

Does this work the same for energy credits...or is that a whole different animal?

i bought a house this year and went through the process. after closing i amended my '08 return with the 1040x & 5405 forms. closing was 17-jul, mailed in the forms 08-august, and received a check for $8,091.69 around 21-sep.

i wouldn't suggest anyone rush to buy a home just to get the credit. take your time and make sure you make the best purchase. it's a huge investment. i knew i'd be buying a house this year and it just happened to line up for me. we're also in a time when mortgage rates are really good, so even if you don't get the 8k credit it's not a bad time to buy.

i think it's best to go with the mindset of finding/buying a house within your means and then putting that 8k (if you get it) to repair costs/emergency fund/upgrades for the house/furniture. even after finding a house that was move-in ready (in that it didn't need major repairs and came with all the appliances) i've spend quite a bit of money in painting the whole house, window shades and new outlets/covers. i haven't even gotten around to buying furniture yet.

the people Halt! Hammerzeit linked to are fucking retarded.

edit: i should also note that i saw the house on 01-jun, put my offer in on 02-june and they accepted it that day. so a total of 45 days to close.

[caddymac]

It probably won't be extended.

However, here's how I see it going down:
a) Sales will drop once the current credit expires. Realtors start to complain.
b) Sales will drop even more once the holidays and winter are in full swing (because no one has the time nor the desire to look for a house). Realtors complain even more.
c) Sales are extremely low for the 1st quarter - realtors roar.
d) Free (term used loosely here) money for everyone!

[caddymac]

My house came with all major appliances, and I've replaced 3 of them so far (washer/dryer/refrigerator). Granted the fridge was purchased solely for color reasons (and to turn the old fridge into a beer storage vessel), but the washer and dryer replacements were a bit sooner than I had hoped for.

I easily spent about as much as my down payment on furniture, appliances, decor, and paint.

[fiveSD]

I just want to win some of this government money, but unless they extended it I won't. Oh well. It's more exciting to think about what prices things will be at in Jan 2010... mmm

[Halt! Hammerzeit.]

Exactly. I think Jan-Mar '10 will be very interesting times indeed!

It probably won't be extended.

However, here's how I see it going down:
a) Sales will drop once the current credit expires. Realtors start to complain.
b) Sales will drop even more once the holidays and winter are in full swing (because no one has the time nor the desire to look for a house). Realtors complain even more.
c) Sales are extremely low for the 1st quarter - realtors roar.
d) Free (term used loosely here) money for everyone!

It's also possible they won't renew the credit immediately, but after a few months of bitching.

[G.O.A.T.]

Late to the party, but..
It took me 3 weeks to close on the house I'm in now, but I had another house under contract prior to this one so it went a little smoother. The first house fell through due to a shitty appraisal and an even shittier seller (he wanted me to pay the difference between the appraisal price and pre-appraisal, post inspection price). I didn't have it so I lost out on the inspection and loan fees.... Stupid asshole blamed his agent and fired her. It's now 5-6 months later and his house is still on the market, and what it cost him to make mortgage payments has more than made up the difference we were arguing over.

One of the first houses I made an offer on was pulled off the market when they found out it wouldn't appraise. They too are eating mortgage payments (which is costing them more than if they'd have just sold it to me at the price I offered). In all I looked at 65 houses and made 5-6 offers before landing where I am now. The new lending laws made buying a home difficult as it got the appraisors panties in a bunch. It pretty much makes buying nice homes in average neighborhoods (or average homes in shitty neighborhoods) impossible without lots of disposable income.

[Halt! Hammerzeit.]

Shit. I was going to wait til spring, but this condo at a pretty prime location just dropped from $272k to $259k on 10/13 and just now to $244k. $28k in 3 days is pretty epic. I hate HOA dues though...

[Talenos]

yeah, I was looking at a similar priced one. Extra $450 a month just for HOA. I guess it does include insurance, but I don't know how much that would be normally. Monthly payments would be just about what rent would be without HOAs.

[Halt! Hammerzeit.]

You mean homeowner's insurance? That's not very much...usually like $50-65. PMI and taxes are a pain in the ass, too. $450 is rape, though.

[fiveSD]

Yeah, I'm looking at HOA of about $120 and thinking that's too much, but far different area. $450 is awful.

If either of you decides to pull the trigger, let me know how it goes!

[Pokaris]

My house came with all major appliances, and I've replaced 3 of them so far (washer/dryer/refrigerator). Granted the fridge was purchased solely for color reasons (and to turn the old fridge into a beer storage vessel), but the washer and dryer replacements were a bit sooner than I had hoped for.

I easily spent about as much as my down payment on furniture, appliances, decor, and paint.

20% down?

[caddymac]

Nothing more, nothing less.

[Halt! Hammerzeit.]

http://moneywatch.bnet.com/saving-money ... blog-river

[caddymac]

The sad part is that if they would just let the credit expire then house prices would drop by more than the credit. The 8k credit is nice, but what a lot of people don't realize is that if houses were 8k cheaper they would save many times that in interest over 30 years.

[Halt! Hammerzeit.]

Well, I can't say how the market here would be without the credit, but properties here have dropped 25-35% in the past year, which is a lot more than $8k.

[fiveSD]

The market being propped up at least $8k really screws over the second-time homebuyers (well at least this year; maybe not next year), but it's impossible to know if that is the case unless they allow the stimulus to expire.

[DTower5]

The market being propped up at least $8k really screws over the second-time homebuyers (well at least this year; maybe not next year), but it's impossible to know if that is the case unless they allow the stimulus to expire.

Second time home buyers are covered in the new proposed credit...

[Alice Ayers]

For real? That's more than the amount we'd lose on the house if we sold right now, after agent fees. So, we could move if that's the case. Only now that everything is finally over, I'm not sure I want to.

[caddymac]

AA, you have to live in the existing place for at least five years before you can use the upsize credit.

[Alice Ayers]

Heh, screwed any way I look at it. Oh well. I have a dog and a house and a pink pony in my back yard.

[nithos]

The market being propped up at least $8k really screws over the second-time homebuyers (well at least this year; maybe not next year), but it's impossible to know if that is the case unless they allow the stimulus to expire.

Second time home buyers are covered in the new proposed credit...

Sweet, not that we will be able to find a house in the next couple months, but if this thing lingers for a year or two I might finally be able to benefit. Maybe I will have to get a free golf cart on the feds tab as celebration.

[Halt! Hammerzeit.]

It passed. 403-12 in the House, and 98-0 in the Senate.