8000 Tax Credit May Be Extended And Rise
Posted on Jun 24 by Justin McHoodWorried about missing out on a fat chunk of change? Find out if you qualify for a loan today by filling out our short form! Click HERE.
One of the most popular topics with new home buyers is the new 8000 tax credit for new home buyers. There is no doubt that for first time home buyers, this tax credit has been a strong incentive to purchase a home – and the entry level home market has seen improvement as a result.
Now there is talk about extending the 8000 tax credit until 2010 and raising it to $15,000 as well.
According to Bernard Baumohl, an economist at the Economic Outlook Group:
“I’m fairly confident that (Congress) will extend the tax credit, because it is so important that housing come back, but raising the tax credit will be difficult because it reduces taxes even more.”
Current Proposals:
• A Senate bill to expand the tax credit to $15,000 for any home buyer regardless of income was introduced this month by Sen. Johnny Isakson, R-Ga. It is co-sponsored by Senate Banking Committee Chairman Chris Dodd, D-Conn.
• A House bill to keep the $8,000 credit in place until June 2010 and expand it to all home buyers was introduced last month by Rep. Kenny Marchant, R-Texas. It also would provide a $3,000 credit to homeowners who refinance.
• Another bill in the House, introduced by Rep. Eddie Bernice Johnson, D-Texas, would extend the credit to all home buyers through 2010.
Generally speaking, it seems to be a very popular idea to extend the tax credit deadline and a somewhat popular idea to increase the tax credit from 8000 to 15,000 — but, as we learned when the initial tax credit was passed into law, it ain’t over until it is over — so anything can happen.
57 Responses to “8000 Tax Credit May Be Extended And Rise”
« Older Comments
-
Maylee says:
October 27, 2009 at 9:31 am
-
Elizabeth Harris says:
October 27, 2009 at 9:59 am
-
Katie says:
October 27, 2009 at 4:08 pm
-
Susan says:
October 28, 2009 at 12:32 pm
-
Bst says:
October 31, 2009 at 11:22 am
-
Alfonso hall says:
November 3, 2009 at 5:00 am
-
Bambi says:
November 3, 2009 at 2:04 pm
« Older Comments
I really hope that they extend this tax credit. I’m trying to get a house through a program with the County I live in (with the program you have to purchase a foreclosed and abandoned home), and they waited months to get back to us and let us know if we were excepted or not. We are supposed to get the letter of acceptance/denial this week. Since they waited so long, I know that we won’t be able to close on the property by Dec. 1. Mostly because the banks take sooo long to close. I don’t understand why the banks are motivated to get rid of foreclosed homes, they should be the ones pushing for the closing date, even more than the buyers.I really hope they extend the tax credit so that i can have the money for closing costs, inspection, and to make the new house a home.
Hi I would love for them to extend this offer. I have been looking for a my first home since November of 2008. I put two offers on two different houses one never returned my call and the other we started the process on june of this year and was scheduled to close on Aug 7th. Everything was going well until the oil tank was checked and it turned out to have a leak. It was a bank owned property and they had agreed to fix it. 2 Days before we went on vacation they pulled the deal stating that we were not able to reach an agreement as far as fixing it. A few days prior they had agreed to fix it and extend the closing until the end of Sept. Well I am out searching again. I would have qualified for this credit. Please extend it it will help me and i know it will help alot of people out there. Please thank you for listening to my story and hope it helps.
You do not need to take a class to recieve the tax credit. I vote to extend the credit I also am waiting to purchase a home and I will back out of the deal if the tax credit is not extended.
We are hoping it is extended. After using our savings for medical bills and me unable to work our money is tight. Rents have gone up SO much. We are trying to get a $110,00 small home. The $8000 would be used to build a fence for our dog and pay medical bills. We get no assistance of any kind and the $8000 would just help us breath. Maybe we could send a little something to our son who is in the military or take our daughter to the dentist. exteneded or not we NEEDED to buy…rent was killing us. $1500 Rent or $750 mortgage..no contest.
I am in the minority here and do not want the tax credit to be extended.
We live in Portland, OR, which has the 3rd highest unemployment rate in the nation, if you didn’t already know that. Based upon an independent study of home values in metro areas across the nation, 5 out of the 7 cities that are still overvalued are in Oregon, including the Portland metro area. The metro area is 15% overvalued, partly because the median income is almost 10% below the national average.
The reason(s) for this gross disparity:
Portland is between Seattle to the North and San Fran to the South which are both very expensive places to live. With that said, based upon the data by the independent study, the two aforementioned cities wages are high enough to counter the high cost of housing.
People that move here apply a misguided ideology when they purchase homes, in that instead of taking into account what their pocket books can handle, they justify the income/home price disparity because Portland has lower cost housing than Seattle and San Fran.
The first time buyer tax credit is good for most of the country where incomes a-line with home values because it has stabilized those markets. The opposite is true in the Portland metro area and all of Oregon for that matter, as the tax credit is just propping up values artificially, as droves of first timers migrate to the state and pay inflated prices, driven impart by the tax credit.
If they let the tax credit expire, Portland and most of Oregon can join the rest of the country where median incomes meet median housing prices. Do the math… Portland’s median home price is $247k, right around the average of what a first time buyer is paying. If home values decline say 10% that would save the first time home buyer approximately $25k on the price of their home.
If I was a first time home buyer in Portland, I’d want the tax credit to expire, because let me see $25k vs. $8k… That’s an easy one!
I pray it Gets extended even better if it’s raised to 15000!!! My goal is to purchase a home before I’m 21.
I would love it if not only did they extend it but raised it. I am looking for my frist home and I have finally found the perfect house and really I have to wait to fix some minor credit issues so hopefully by the first of the year I can be in my dream house. Hopefully congress sees this as a wise decision and it all works out.
Leave a Reply