John's Florida Real Estate Blog

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$7,500 First-Time Homebuyer Tax Credit - Really a Loan

There has been much talk about a recently enacted federal bill that is supposed to help the housing market and eliminate some of the lending problems that have brought on the current housing crisis. One of the provisions will do away with third party down payment assistance programs. Although I have heard rumors that there are moves to reintroduce these.

Another biggy is a so-called $7,500 first-time home buyers "tax credit". However, the National Association of Home Builders is reporting, along with several other outlets, that this is not truly a tax credit, as we have known them in the past. According to NAHB this "credit" is really a loan that will need to be repaid over a period of 15 years. So, to me, it sounds a little like a second mortgage on the home. However, in this case, the interest rate will supposedly be 0%. That is not a bad thing. If you sell the home before the 15 years is up, the amount you still owe will be paid back to the government at the closing of your sale.

Anyway, you may want to visit the National Association of Home Builders site at: Tax Credit Information from National Association of Homebuilders They have a lot of good information as well as a Frequently Asked Question link. If you are a first-time home buyer and want to see if you qualify for this program, I suggest you take a look at this page and speak with your chosen lender or mortgage broker. This site also has other information concerning this stimulus bill, besides that which deals with the tax credit. So take a look and see if it can help you and your family.

You can also download a quick reference chart that the National Association of REALTORs has created in Adobe PDF format by clicking on the following link: Download NARchart_tax_credit_.pdf

I invite you to also visit my webpage at: www.jelwell.century21bnr.com where you will find links to many interesting sites dealing with real estate. You are always welcome there.

I can also be contacted via e-mail at: jelwell1@tampabay.rr.com or by phone at: 813-783-4444

John Elwell - REALTOR

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

 

Comment balloon 0 commentsJohn Elwell • August 27 2008 09:29PM

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