Increasing first time home buyers credit??

gamecock43 · #1 (**permalink**) 11-10-2008, 04:51 PM

My new husband and I are FINALLY gearing up to present an offer on our first home (those of you who read my blog have heard ALL ABOUT THAT!)...and we have stopped in our tracks because we have heard a RUMOR that the first time home buyers benefits are about to improve.

I have heard:
That the first time homebuyers credit will eliminate the loan repayment part of the plan.

That the first time home buyers credit will increase from $7500 to $20,000.

That the first time home buyers credit will increase from $7500 to $30,000.

That there will be an ADDITIONAL stimulus plan to allow first time home buyers to lock in a 3% interest rate.

And I have heard that Pres Bush wants to do this as a leaving legacy...and I have also heard that these are Obama plans.

I thought I heard that Todays meeting between Obama and Bush would discuss these plans...but it seems that they didnt talk about this.

I have been waiting and saving for 3 yrs now to buy...I can wait longer if these incentives for 1st time buyers will increase...but I also dont want to delay purchasing a home indefinitely....

So...what has everybody else heard?? Thoughts? Gossip? Rumors?

ScrimpAndSave · #2 (**permalink**) 11-10-2008, 05:18 PM

Wow...I am VERY curious to hear about this one...it would benefit me as well!

project15 · #3 (**permalink**) 11-10-2008, 05:19 PM

Wow, those are pretty good. I qualify for the 0% $7500 loan and I'm happy with that. I doubt a no-loan $20,000 will ever be approved which also rules out the $30,000. It's nice to dream though =)

gamecock43 · #4 (**permalink**) 11-10-2008, 05:23 PM

I just watched CNBC and they said there are plans to entice more people to buy houses between now & 2010. They said a lower interest rate or a tax credit WILL help...and these plans could go into effect as soon as tomorrow. New hubby and I are holding off the celebrating though...because the govt always takes a while to implement the good stuff.

gamecock43 · #5 (**permalink**) 11-10-2008, 05:26 PM

I qualify for the$7500 credit too project...but that has to be repayed starting in year two. You pay back $500 a year or something like that. From my research- Americans are not liking the repayment part and not biting on the 1st time credit yet- so they are talking about making it a FREE $7500 that does not need to be repaid.

simpletron · #6 (**permalink**) 11-11-2008, 11:25 AM

I haven't heard anything about this. I find it plausible that they would increase the limit but still have to pay it back or keep it at 7500 and don't have to pay it back. But you're dreaming to get both. What exactly do you mean by lock in 3%; they can get a 3% 30-year fixed mortgage?

it would be awesome just not to have to pay it back because I plan on using the 0% loan + the increases in solar tax credits(federal is removing the cap next year and my state started a program this year) to install solar panel on my roof. If I didn't have pay the loan back, it would mean unexpected free solar for me because I didn't know about the loan until after I bought the house.

Quote:

Originally Posted by gamecock43

I have been waiting and saving for 3 yrs now to buy...I can wait longer if these incentives for 1st time buyers will increase...but I also don’t want to delay purchasing a home indefinitely....

It will be easier for you to negotiate the seller down without the incentives changing. I know if I was a seller and there was 7500 tax credit (not loan), I would raise my minimum acceptable price by about 5000-7500 and push harder for a higher price. The 0% 7500 one was retroactive for a couple of months, so if the incentive do change, they could be retroactive too. Ideally you would you to buy before a change is enacted and it be retroactive to include you. I think the best move is to take your time and find exactly what you want at a good price then buy the house whether or not any changes will happen to the incentives. then treat a change in the incentives as a bonus.

project15 · #7 (**permalink**) 11-12-2008, 04:02 PM

Quote:

Originally Posted by gamecock43

I qualify for the$7500 credit too project...but that has to be repayed starting in year two. You pay back $500 a year or something like that. From my research- Americans are not liking the repayment part and not biting on the 1st time credit yet- so they are talking about making it a FREE $7500 that does not need to be repaid.

Yup, I'm using it towards the mortgage to save on interest.

gamecock43 · #8 (**permalink**) 12-03-2008, 06:23 PM

The govt is thinking about offering 4.5% interest loans to new homebuyers!! It's hush hush for now but might go big public in the next few weeks!!

ScrimpAndSave · #9 (**permalink**) 12-03-2008, 06:30 PM

I KNOW! I wish it was just two years later.

ScrimpAndSave · #10 (**permalink**) 12-04-2008, 08:52 AM

I'm dying to find out what is going to happen and how long it is going to be in place...

gamecock43 · #11 (**permalink**) 12-04-2008, 09:07 AM

I was thinking of putting in an offer around xmas time...maybe I will wait a little longer

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