$8,000 First Time Homebuyer’s Credit

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Are you sitting down? Do you have a pen and paper handy? Looks like the $15,000 tax credit to buy a new home has been scrapped, saving $35 billion from the stimulus package, and replaced with an extension to the $7,500 and an increase of that credit to $8,000. The $7,500 first time homebuyer tax credit was set to expire July 1st, this $8,000 provision would extend that. CNNMoney is reporting that the credit is available for those who buy a home between Jan. 1, 2009 and Dec. 1, 2009 (source).

The cost of the extension and modest increase is pegged at around $2-3 billion. Another key provision? The repayment requirement will be nixed. That means the $7,500 15-year loan at 0% interest will now become $8,000 cash money in your pocket. I believe existing borrowers would have that loan forgiven.

Home buyers who hoped for a $15,000 tax credit to buy a new home, as promised by the Senate, will be disappointed. A proposed $35 billion credit to support home sales was jettisoned in favor of a more modest $2 billion to $3 billion provision.

The proposal would eliminate the repayment requirement in an existing tax credit for first-time home buyers, and raise the credit to $8,000 from $7,500. Congressional aides cautioned Wednesday that the credit’s size was still subject to negotiation.

Congress Strikes $789 Billion Stimulus Deal [Wall Street Journal]

{ 164 comments, please add your thoughts now! }

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164 Responses to “$8,000 First Time Homebuyer’s Credit”

  1. Nadel Doria says:

    I heard that you can get the money before you buy the property is this true ?

  2. pachu says:

    My house construction will be starting this month.Due to weather or other problems if the closing is not done before Nov 30th, does it mean i get no credit?
    Again, if I take help from my parents to help me with the finance that I can repay with out interest in a few years and wish to add one of them as a co buyer what happens to the credit even if they deliver the home in november?
    Any chance of this Dec 1 as deadline to be extended?

  3. Nunya says:

    Purchased house on May 8th 2009. Submitted amended 2008 return on May 15th. Still no $8000. I called to check if everything is ok. Yes everything is fine. Yes we have everything we need. 14 weeks and counting. Don’t hold your breath.

    • Nunya says:

      Recieved letter dated 8/31 saying everything ok. Still counting and counting, counting and counting.

  4. Rachel says:

    Here’s a question. My fiance bought a house and then in month later we are getting married. I’m not on the mortagage because of poor decisions I made when I was younger with my credit. Both of us have never owned a home before and he’ll be claiming head of household for our family for taxes.

    Will he be considered “single” for the income limits or married?

  5. Desi says:

    We bought house in July 2009 & because of job relocation selling it in Nov 2009 . So are we eligible to take $8000 credit

  6. Sheryl says:

    I owned a manufactured home in a trailer park. I never owned the land. I sold the mobile home in Nov. 2008 and purchased a stick build on its own land in February 2009. Do I qualify for the home owners tax credit of $8000.00

  7. OhMan says:

    I bought my house May 8th and submitted for the first time home buyers credit on my 2008 taxes on May 12th. I still haven’t recieved any money. My file went through exams and they approved the return on Aug 31st. It has been a total of 180 days. Here is my message to the President: Mr. Obama, The reason this economy isn’t doing better is because the people responsible for handling your incentives are slackers or just plain stupid. DO NOT COUNT ON THIS MONEY FOR ANYTHING IMPORTANT!

  8. reginia says:

    I heard that if u applied for the 8000.00 credit. The government would send u a check, directly to u. And, if u decided not to buy a house with the money u would only have to pay 500.00 back per year to the govermemt, til the loan is paid.

  9. Wondering5 says:

    Dear Friends: I do hope this get published, as we bought our home in Feb. and are still getting excuses from the IRS, like prove we live here. Where else would we live? This is our first home and have lived in a RV for 14 years waiting to save the money. I am a Disabled Veteran, 100% Total & Permanent. They send us a letter every couple of months asking for more and more proof that we are either first time home owners, or that this is our real address. I can see how it confusing to them we only moved across the street so not much changed. But even the VA has sent them proof positive that my Meds. are sent to this address and must be signed for, I don’t really know what else they need.

  10. aua868s says:

    the housing market has still not recovered completely…why is this tax credit gone?!

  11. webster family wellness says:

    Looking foward to hearing your next post!

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