Congress Expands Homebuyer Tax Credit

Thursday, November 05, 2009

First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package enacted earlier this year. But with the program scheduled to expire at the end of November, the Senate voted Wednesday to extend and expand the tax credit to include many buyers who already own homes. The House is scheduled to vote on the bill Thursday.

Posted by Corky at 04:32 PM | 31 COMMENTS | permalink | Comment on This Entry

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Corky

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Good, 4 yeard old and illegal aliens will be able to trade up to better homes. I am very pleased.

#1 | Posted by member2586 at 2009-11-05 12:52 PM | Reply | Flag:

Isn't encouraging people to buy houses when they couldn't afford them part of the cause of our current economic woes?

#2 | Posted by taxman at 2009-11-05 01:10 PM | Reply | Flag:

The lenders are a lot more picky these days TM.

You still have to qualify. I am getting married and we are going to be purchasing another house in the Spring. Looks like I can get in on this one now.

People can complain or take advantage of the situation. I'm taking advantage of it.

#3 | Posted by Manypaths at 2009-11-05 01:15 PM | Reply | Flag:

"I am getting married"

I am sorry to hear the bad news.

#4 | Posted by member2586 at 2009-11-05 01:18 PM | Reply | Flag:

well at 38, figured it's about time to try that dance out. Plus, I found a great one.

#5 | Posted by Manypaths at 2009-11-05 01:21 PM | Reply | Flag:

well at 38, figured it's about time to try that dance out. Plus, I found a great one.

#5 | POSTED BY MANYPATHS AT 2009-11-05 01:21 PM

I never thought you and Murphy would work out but I guess opposites attract.

#6 | Posted by jackass at 2009-11-05 01:22 PM | Reply | Flag:

That hurt dude.

#7 | Posted by Manypaths at 2009-11-05 01:25 PM | Reply | Flag:

People can complain or take advantage of the situation.

Well if you aren't a first time home buyer and have owned your house for less than five years you can't take advantage, so I encourage complaining if you fall in that group.

#8 | Posted by taxman at 2009-11-05 01:31 PM | Reply | Flag:

Congrats, Many.

As mentioned, people still have to qualify for the loans.

#9 | Posted by Corky at 2009-11-05 01:32 PM | Reply | Flag:

The lenders are a lot more picky these days

I just sold my house to buyers who financed through FHA - no money down, cash back at closing, and they are getting the tax credit.

I would be willing to bet they are under water in 2-3 years.

#10 | Posted by taxman at 2009-11-05 01:36 PM | Reply | Flag:

Have owned my current house for 9 years. Will be able to rent it out for a couple hundred more than my payment.

Do I qualify if I keep my current home?

#11 | Posted by Manypaths at 2009-11-05 01:44 PM | Reply | Flag:

Houses are still losing value in your area TM?

#12 | Posted by Manypaths at 2009-11-05 01:47 PM | Reply | Flag:

When is the first time swimming pool credit and sunroom credit coming out?

#13 | Posted by Petrous at 2009-11-05 01:51 PM | Reply | Flag:

#13 | Posted by Petrous at 2009-11-05 01:51 PM | Reply | Flag: Befuddled by difference between shelter and luxury

#14 | Posted by Corky at 2009-11-05 03:22 PM | Reply | Flag:

All that and the FHA is going tits up with all their shakey 3.5% down loans. Who would have seen that comming? With the $8k tax credit they have nothing envisted in the house so it's easy to just walk away.

#15 | Posted by Sniper at 2009-11-05 04:46 PM | Reply | Flag:

I am actually FOR this program, and know of two couples who purchased homes using this rebait, and a third hoping to close by 11/30.

Clearly America would have benefited FAR MORE of Congress had just reduced earned income taxes on the lower and middle classes.

Speaking of taxes, and the zero's pledge 'not to raise taxes on those earning less the 250,000' looking NOW dorky? Funny how deep that's going to cut US GDP when we have to start paying for the porkulus spending!!!!

#16 | Posted by DavetheWave at 2009-11-05 05:48 PM | Reply | Flag:

Does this apply to a primary residence only? If I can get the credit for buying another rental property, I might be interested.

#17 | Posted by Whatsleft at 2009-11-05 06:00 PM | Reply | Flag:

Corky, it was a joke. I wanted the stimulus money to go directly to homeowners, not the banks.

The houses in my neighborhood are still rotting. They were foreclosed on but the banks can't sell them. They sit with lawn uncut. Takes the county to do it with more assessments against the property.

Who wants to buy property with Bank liens and County liens? What's funny is if the County forgives their debts, its income to the bank.

The other properties that people left behind haven't been foreclosed on. The County liens are against the homeowners.

Cutting their lawns is a regular occurence. Those liens are building up. If I was in an association, this would be even worse.

Homeowners needed the stimulus, not the banks. The homeowners could have given the money to the banks, paid their own mortgages, and the money would have went further in aid.

#18 | Posted by Petrous at 2009-11-05 06:17 PM | Reply | Flag:

#18 | Posted by Petrous

You do understand that TARP(bank bailout) and American Recovery and Reinvestment Act(economic stimulus) were two separate bills, don't you?

#19 | Posted by Whatsleft at 2009-11-05 06:26 PM | Reply | Flag:

#19, obviously not. Doesn't change how I feel on how the money was spent.

#20 | Posted by Petrous at 2009-11-05 06:37 PM | Reply | Flag:

en.wikipedia.org

I'll do some reading in my free time.

#21 | Posted by Petrous at 2009-11-05 06:39 PM | Reply | Flag:

Does it matter what the bill was called when the government gives our hard earned money to the leaches? You people do need to read Ayn Rand. She hit the nail on the head and look at how old thoes books are.

#22 | Posted by Sniper at 2009-11-05 07:03 PM | Reply | Flag:

4 yeard old and illegal aliens will be able to trade up to better homes. I am very pleased.

How many illegal aliens file tax returns? Isn't one of your talking points that they don't pay taxes? How does a tax credit help someone does not pay taxes?

#23 | Posted by JimmyWallback at 2009-11-05 07:11 PM | Reply | Flag:

Does this apply to a primary residence only?

The credit, which still must be passed by the House of Representatives, wouldn't cover second homes and is limited to homes of less than $800,000.

#24 | Posted by JimmyWallback at 2009-11-05 07:14 PM | Reply | Flag:

Isn't encouraging people to buy houses when they couldn't afford them part of the cause of our current economic woes?

#2 | Posted by taxman at 2009-11-05 01:10 PM | Reply | Flag

You have a point, but its also more complicated than that. And to a large degree didn't involve people that couldn't afford it. That was about 10% I believe.

There were plenty of people who could afford just fine, but were kinda dumb and got setup on an ARM loan. When the rates got jacked up, they got jacked out of they're house.

There were others who again could afford just fine, but kept borrowing against the equity. Then the home value would go up and they would borrow again. Then the home value went down and they were left holding the bag.

Then there were people who liked to mix up they're bad financial strategies and misfortunes.

Theres alot going wrong here, but to pair it down to "affordability" is kind of off the mark. It was false assumptions of value, bad advise, outright greed.

Helping people get into houses is a good thing for everybody. Its the unfettered free for all that sunk the boat. And to that extent I don't know that things have changed much. Just bought a house a couple months ago, I can tell you they asked for alot more paperwork than the house I bought in 2001. But whether you can afford it or not, you'd almost be retarded to not and try to get a house this year. Hopefully america has learned its lessons about borrowing against equity and the exuberance of the market. And so far the bank hasn't sold my loan to someone else yet...

Has casino capitalism been outlawed yet?

#25 | Posted by KnightHawk at 2009-11-05 07:16 PM | Reply | Flag:

Does it matter what the bill was called when the government gives our hard earned money to the leaches?

#22 | Posted by Sniper

Two bills, there were 2 bills. Only one of them went directly too bankers/leaches.

#26 | Posted by Whatsleft at 2009-11-05 07:19 PM | Reply | Flag:

This strikes me as something quite republican.

#27 | Posted by boojiboy at 2009-11-06 12:11 AM | Reply | Flag:

Fannie Mae just reported delinquency rates moved from 17%--a horrible number--to north of 22% for the 3rd quarter.

This little tax credit is like plugging a dam break with some chewing gum. Housing prices are collapsing, and another flood of foreclosures are soon to hit.

#28 | Posted by rightisright at 2009-11-06 09:22 AM | Reply | Flag:

The tax credit should have been targeted to areas where foreclosures are the highest and where prices are dropping the most.

#29 | Posted by taxman at 2009-11-06 10:33 AM | Reply | Flag:

As mentioned, people still have to qualify for the loans.

#9 | Posted by Corky

Define 'qualify'! What does that have to do with the fact that you don't have to put any money down to get the loan so you have no investment in the house in the first place. That is the problem, people are upside down on their loans so they just walk away from them.

#30 | Posted by Sniper at 2009-11-06 11:25 AM | Reply | Flag:

The 08 plan was a motivator for me; I had to relocate due to work and therefore buy anyhow, it just opened my window a touch wider. There are so many loopholes that just about anyone within the income bracket can take advantage. I still own my previous home, and will be legally elligible for the credit on the new one. Go figure...

#31 | Posted by Mountain_Mano at 2009-11-06 04:26 PM | Reply | Flag: