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First-Time Home Buyer Tax Credit – time is running out!

Just a quick note that time is running out to qualify for the 2009 First-Time Home Buyer Tax Credit. We’ve done a video that clearly explains the benefits of the program and why you need to act NOW (if haven’t already) to qualify.

You have to close your new home by Nov. 30, 2009 to qualify for up to $8,000. This isn’t a tax deduction. It’s a tax credit and that means you’ll get a refund even if you don’t owe any taxes.

This is the best time in my life to be a first-time home buyer and anyone who waits because they aren’t sure what they should do will probably kick themselves later on, once they realize they let the opportunity slip by. It’s almost a perfect storm for being a first-time home buyer: Mortgage rates are near historic lows, home prices have dropped significantly and it’s the best buyer’s market in decades - AND the $8,000 2009 First-Time Home Buyer Tax Credit is available to anyone closing on their home between now and Nov. 30, 2009.  Check out our First-Time Home Buyer Tax Credit video below for more info:

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  1. I agree that it may not be ideal, but it’s all we have. The government would be better off trying to keep people in their homes, but I don’t see that actually happening.
    If we only focus more on reducing the number of sellers rather than increasing the number of buyers we may start to address the issue.

    Posted by: Chandler Arizona CPA | November 19, 2009
  2. I’m a 45 year old divorced father of four. In January of 2006 I quit claimed all interest in the home my ex wife and I owned and lived in. Three and one half years later, I was debating whether to renew my annual lease on an affordable apartment in a convenient location. My landlord, a realtor, told me I’d be crazy NOT to take advantage of the new first time home buyer credit being offered.
    I looked into it. I clearly qualified as a first time home buyer. I knew of a nice little house for sale in a neighborhood I liked. I didn’t have much money for a down payment though. I heard of a local bank offering to lend downpayment money to borrowers qualifying for the first time home buyer credit. Everything was lining up! I got pre-qualified, made an offer, got it accepted, and scheduled a closing.
    In June of 2009 I became a home owner. I paid $65,000 for the house. I borrowed the 10% downpayment in a balloon loan- to be paid when the tax credit came in 6 to 8 weeks. This may seem like the kind of borrowing that got the country into trouble, but the house appraised well above the purchase price, and with the $6500 credit, I’d be in a great equity position in no time!
    Two months later I’d heard nothing from the IRS. I went online to check the status. It showed nothing. I called a toll-free number and was put on hold for twenty minutes! You never get those minutes of your life back!
    Three months later I called again. I learned that the IRS was overwhelmed by applications for this first time home buyer credit. The Economic Stimulus was doing some stimulating. Things were backed up. The balloon loan came due. I extended it for another six weeks, (at 13%)
    Four months later I got a letter from the IRS. My credit was denied. Their records showed that I’d owned a home within the three year period preceding the purchase of the qualifying home. Their records were wrong, but that didn’t matter much. the letter was final. My only option, it stated, was to appeal in federal tax court!
    What???? Once I settled down, I began researching. I found phone numbers that got me directly to IRS agents. (See the page: IRS contacts) I made calls and surprised a few bureaucrats. I also filled out a form to procure an IRS tax advocate. If you are having trouble getting your credit, click here to FILL OUT THIS FORM: !!
    I got them to reopen my case. I called my advocate every week. I felt like, maybe she was helping- maybe she was pacifying be to get me off the phone.
    Six months later, I closed out the year with a report from the IRS. The advocate had told me nothing of the report landing in my mail box- the report informing me that A. My First Time Home Buyer Credit was denied. B. A review of my 2008 tax filing revealed an underpayment of $1600.00!
    Wow! Both items were in error. Try telling the IRS that!
    I’ve since refinanced the balloon loan into a second mortgage. Now I’m paying two loans and property taxes, and utilities, AND maintenance! Thanks Obama. You dangled a carrot. I jumped from my affordable apartment. The carrot got yanked away and here I am. The irony of a first time home buyer home going into foreclosure is rich and tragic.
    Have I quit fighting? No Way!
    1. I contacted my U.S. Congressional representative. I encourage anyone having trouble of this sort to do the same. After signing a release of information, the office of my congressman will be advocating for me. A file stamped: CONGRESSIONAL INTEREST might just float to the top of the pile.
    2. I submitted paper copies of all documentation directly to the agent who signed the report, along with a letter summarizing my situation and itemizing the documents included.
    3. I submitted paper copies of all documentation directly to the taxpayer advocate assigned to my case.

    Posted by: Greg | January 6, 2010
  3. 3 months are enough time to make all the submitted paper copies.
    Deirdre G

    Posted by: Philippines properties | January 11, 2010
  4. Glad this thing finally is over. Now we can see if the market can sustain itself

    Posted by: Boston MA CPA | May 1, 2010
  5. The market should go lower now that the tax credit has expired. Not sure how low it can go. We’ll see if the gov’t ends up coming up with another plan to help the market.

    Posted by: Austin TX CPA | May 10, 2010
  6. With the expired tax credit, it looks like all the buyers have dried up? No wonder mortgage rates are lower…there is no one looking to buy and no one has the equity to refi.

    Posted by: Accountant Marketing | May 22, 2010
  7. Looks like buying activity dropped like a rock in early May. No wonder…anybody who has been considering buying a home bought over the last 6 months or so. We’ll see how far the market falls.

    Posted by: Accountant Marketing | May 26, 2010

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Thursday, October 19, 2017