Potential new tax law changes allow for NO REPAYMENT of this loan. It would apply to purchases of homes through July 1, 2009.
Think about it... on a $200,000 mortgage, that means the government will actually be GIVING you more than enough enough to cover a 3.5% down payment on a home (FHA loans still only require 3.5% down). Of course you'll have to front the money at the closing table, but if you file your taxes the next day, you won't have long to wait until that money is refunded to you by the IRS.
Posts
4 comments:
I just learned about this tax credit, and I’ll admit that I’m a little confused. I bought a home a few months ago through a company called Taylor Morrison (learn more about them on their website- http://dreambig.taylormorrison.com/?utm_source=bc - and sign up to win a dream vacation while you’re there) and the financial advisors that I work with there told me that I qualify. But your article mentions that this is a loan and not a credit, so now I’m a little confused. Thank you for bringing this to my attention, and I have some questions to ask my Taylor Morrison team.
The tax credit was originally designed to be an interest free loan and paid back over the course of 15 years when you file your tax return (see http://chiblogoillinois.blogspot.com/2008/10/for-first-timers.html). However, with the new stimulus package just announced, they have decided to push for the credit to be just that - a credit - not to be repaid. I am still waiting for the IRS to publish further information and I'll post that on my blog as soon as they do.
Any word on when the stimulus package will be passed?
They're working on passing it now. Myself and Obama both want it to be passed soon!
Post a Comment