First-Time Home Buyer Tax Credit Expanded to $15,000?

[red92s]

I didn't realize that. That's even worse. At least the other money had to be repaid.

Yeah think about the people that bought houses last december and now owe the government $7500 feel. If they closed a couple weeks later they'd be a lot better off.

[amarowsky]

Yeah think about the people that bought houses last december and now owe the government $7500 feel. If they closed a couple weeks later they'd be a lot better off.

Yep one of my good friends bought a house just before the $7500 interest free loan happened. And because he is not a wise spender, has already blown though ALL of his money (he bought the home last June 2008). Keep in mind he went though all that money WHILE STILL HAVING 3 Room mates @ $350-400 rent from each roomy. The home was bought for $125k. He maybe grosses 2-3k a month (a lot closer to 2).

[disneysteve]

The home was bought for $125k. He maybe grosses 2-3k a month (a lot closer to 2).

There's the problem. Someone who earns 3K/month (36K/year) has no business buying a house for 125K. That is well more than 3 times income. And if he actually earns closer to 2K/month, even more so. There is no way that any lender should have been allowed to approve him for that purchase. However, not only are those loans still being approved despite the whole real estate meltdown, but the government is incentivizing people like that to buy homes that they can't afford by giving them the tax credit. Apparently nobody has learned anything over the past few years - not buyers, not lenders and not the government.