Any Buyers Here Getting $6500 Tax Credit ?

chisueNovember 13, 2009

This slipped under my radar until I read an article in this morning's Chicago Tribune. I knew about the $8000 credit to those bying their FIRST home, but this became law Nov. 6.

If your household income is under $125K (single filer) or $225K (filing jointly), you can claim the credit as soon as you close on something costing $800K or less. That could be anytime from Nov. 6 up to June 30, 2010.

You must have lived in your current home five of the last eight years. You don't have to 'buy up', just buy another principal residence. You don't even have to sell your present home, but you do have to move into the new one.

You can buy new, existing, manufactured -- even a boat if you're going to LIVE on in.

The article, which originated in the Washington Post, provides a link to www.federalhousingtaxcredit.com

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adellabedella_usa

That living in the current home five of the last eight years might throw us out. We're building. We just sold a house we lived in for three years. $6500 wouldn't have been enough incentive to continue living there for another two years.

    Bookmark   November 13, 2009 at 2:52PM
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deanie1

Well, had I done any amount of homework or paid closer attention to the news before purchasing I would have at least waited til the vote on the 11/06 just to see what happens. But no, the title woman talked my DH and I into closing early--it was originally scheduled for the 6th of Nov. We had no reason to close early--she just seemed to really want us to and we thought "why not?" I guess we don't qualify. Missed it by 13 days. I'm trying hard not to cry!

    Bookmark   November 13, 2009 at 10:08PM
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chisue

Oh, Deanie, I'm sorry! Sure didn't think of a situation like yours when I posted.

    Bookmark   November 14, 2009 at 10:58AM
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laurie57

I just closed on a new home Sept. 30th, and am I ticked!!! When Congress passed this bill, they increased the income limits for first time buyers, and MADE THAT RETROACTIVE (to 1/1/09?), but not for repeat buyers! Of course, I'm a repeat buyer. What's new.

To top that off, my husband had never owned a home. I had mine for 22 years, but he couldn't take the $8000 credit either, because we were married a few years ago.

And let's not even mention the fact that getting a loan to build this house practically took an act of Congress in itself. Couldn't do a one-close construction-perm loan, and closing costs were quite extraordinary, all thanks to this ridiculous mess we're in -- basically because of our friends in Washington.

So now, I have 2 mortgages (planning to rent out the 1st home until the market improves). Even if the credit brings buyers, it's not going to help me get what I need on that house.

It sure would have been nice to recoup a least some of those closing costs. I'm thinking about writing my congressman over this one.

    Bookmark   November 14, 2009 at 5:41PM
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artemis78

@deanie1, aren't you first-time buyers? (I seem to remember that from a past thread...) If so, you still qualify---just under the 2009 credit rather than the 2010 credit. It's the same amount of $$, though!

    Bookmark   November 14, 2009 at 6:17PM
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deanie1

artemis, like laurie57, one of us (my husband) has owned a home before--he bought his parents' house 10 years ago. So, we were new to the home-buying process, but not technically your typical first-time home buyer. Thanks for thinking of it though.

    Bookmark   November 14, 2009 at 8:17PM
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bethesdamadman

My wife and I just sold the house we've owned for the past 11 years (settlement was yesterday) and we're going on a house-hunting trip to Las Vegas next month. Assuming we find a place to buy, we'll be getting the $6,500 credit.

    Bookmark   November 14, 2009 at 11:28PM
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chisue

bethesda -- This is OT, and I know you're someone who thinks these things through, but...why have you chosen Las Vegas? All those foreclosed homes and unfinished developments -- and no water. Won't there be municipal financial problems for years to come?

    Bookmark   November 15, 2009 at 10:47AM
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cmarlin20

If one likes the lifestyle of Las Vegas, now is a good time to buy. All those foreclosures make a good buyers market. One can always avoid an unfinished development.

    Bookmark   November 16, 2009 at 10:34AM
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creek_side

"If one likes the lifestyle of Las Vegas, now is a good time to buy. All those foreclosures make a good buyers market. One can always avoid an unfinished development."

I dunno, could be a bit dry in years to come. See the link.

Here is a link that might be useful: Las Vegas Water Issues (Long)

    Bookmark   November 16, 2009 at 11:01AM
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xamsx

My in-laws live in Vegas... not a place I'd want to ever buy or live, but if you look at gated 55 and over communities that are complete, you should be in great shape to find something at extremely low prices bethesdamadman.

Water issues in a dessert.. whodda thunk it?

    Bookmark   November 16, 2009 at 1:46PM
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bethesdamadman

The unfinished developments are in the far outskirts of town: Mountain's Edge, Southern Highlands, etc;. I've been looking in established communities that were built in the 80s and 90s.

People who've only been to the Strip have no idea what Vegas is about or what the communities are like. One such community is Desert Shores. A beautiful planned community with four lakes and a man-made beach. Here are some pictures.

Here is a link that might be useful: Desert Shores

    Bookmark   November 16, 2009 at 4:30PM
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bethesdamadman

chisue: "why have you chosen Las Vegas?"

My DW and I spent our honeymoon there 31 years ago and I've gone back at least once or twice a year ever since (either on business or pleasure or both). I've just always loved the place - both the 24/7 excitement of the Strip and the natural beauty of the surrounding areas. Not to mention the fact that I won't have to deal with snow and ice anymore! Or file state income tax forms!

    Bookmark   November 16, 2009 at 4:44PM
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chisue

OK, you're familiar with the territory. We'll have to let you buy there if you want to. LOL

I wouldn't be certain those lakes will still be there in the future. (Isn't "Desert Shores" an oxymoron?) A friend was with MUD in San Francisco before moving to manage a private water company father south. She's is very pessimistic on supply/demand/government management for water in the NEAR future. But then, she's decided to make her home in 'Quake Central'!

Rose-colored glasses for all!

    Bookmark   November 17, 2009 at 9:57AM
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cmarlin20

chisue, I haven't found the perfect place to live, every place has its pros and cons.
Also, each person has different values to define the perfect place.
I enjoy the city life, I know most others dream of being on a large piece of land with lots of trees and privacy, boring to me.
To each his own...

    Bookmark   November 17, 2009 at 10:10AM
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terriks

I enjoy the city life, I know most others dream of being on a large piece of land with lots of trees and privacy, boring to me.

Ditto for me!

And I'll take earthquakes over tornadoes and hurricanes any day! I think that has to do with the devil you know vs. the one you don't.

    Bookmark   November 17, 2009 at 11:51AM
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cmarlin20

And I'll take earthquakes over tornadoes and hurricanes any day! I think that has to do with the devil you know vs. the one you don't.

I live in EQ country also, it doesn't bother me. I wish I didn't have the risk, but I accept it because I love my lifestyle here in Southern California. It is the devil I know.
I don't do snow...

    Bookmark   November 17, 2009 at 12:07PM
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chisue

We're happy to be near that vast reservoir, Lake Michigan. Cools us in the summer and moderates our weather most of the year. Our city has its own pumping station providing plenty of good drinking water. No tornados, hurricanes, and until the New Madrid Fault wakes up -- no quakes to mention. We have an acre of quiet, but are 3 mins. to town shops and RR to Chicago. Pretty much content.

In the dead of winter...Maui. (O'Hare is 45 mins. away.)

I hear you California people. Friends and former neighbors live near San Francisco, despite their son's warning that The Big One is overdue, and that's his business: Risk Management. Ha-ha, he lives there too!

    Bookmark   November 17, 2009 at 3:34PM
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creek_side

LOL. Chicago and moderate weather, who knew? Isn't O'hare where they filmed Airport?

Anyway, enjoy your moderate weather and don't worry about the New Madrid fault. It was never a real threat to any place that far north, plus it's now thought to be shutting down, perhaps forever.

Here is a link that might be useful: Wiki On The New Madrid Fault

    Bookmark   November 17, 2009 at 4:50PM
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chisue

creek_side -- "Airport" was filmed in Minneapolis. (Had to look that up.)

Chicago actually does have mostly smooth transitions from season to season. Winter IS harsh; that's why we decamp to Maui. OTOH I like to know we get a good hard frost every year. That kills some of the bugs and means less need for insecticides (get enough of those chemicals in Hawaii.)

    Bookmark   November 18, 2009 at 10:06AM
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barbcollins

Does anyone know how long the time limits are on moving to the new residence?

All the houses we are looking at our major renovations and we couldn't move right away.

What happens if you take the credit then don't end up moving to the new house? When do you have to pay that credit back?

    Bookmark   December 3, 2009 at 12:48AM
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ncrealestateguy

"What happens if you take the credit then don't end up moving to the new house? When do you have to pay that credit back?"

More than likely this would fall under either Mortgage fraud or Tax fraud, both of which are felonies. This program is not for investors. Property must be used as a personal primary residence.

    Bookmark   December 4, 2009 at 7:30AM
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chrisk327

It all really depends on intentions and facts I'm sure.

I am purchasing a house as my primary residence and will live there for a few months, move our, renovate, move back. It is still my primary residence.

if for some reason you purchased with the intention of making it your primary residence, but there was a delayed move in date, I'm sure that would be fine. If you did so and just never moved in, improved and sold.... I don't know, but I'm assuming there is a provision that will disallow the claim. Going into this with the intention of never moving in would be fraud.

    Bookmark   December 4, 2009 at 12:28PM
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ncrealestateguy

I do not know for sure, and I should, but I would bet that there is a minimum amount of time that one would have to live at the property... probably about two years.
Anxious to hear from others that know.

    Bookmark   December 5, 2009 at 7:28AM
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cmarlin20

I'm sure the documents one signs for the credit, will have one certify moving in, primary residence and so on.

    Bookmark   December 5, 2009 at 10:52AM
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dianemargaret

different angle. now divorced but still working on selling house. In January we will have owned the house for 5 years. I moved out and am renting a room with co-worker since June. I will have to buy something cheaper with my portion of proceeds. Does this qualify me and if it does for half? or 55% which will be my portion of proceeds? Or nothing?

    Bookmark   December 6, 2009 at 1:55PM
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