First Time Home Buyers Tax Credit Extension to $15000 in 2010?
Posted on | October 15, 2009 | 17 Comments
The first time home buyers tax credit will expire on November 30th, 2009. The idea of an extension to $15,000 and expiration date until at least May 30th, 2010 has been talked about in the Senate. After learning that foreclosures had their “worst three months in history” it seems very logical to extend this tax credit to get more buyers in the market. With all the bank owned homes on the market someone is going to have to purchase them and giving first time home buyers an incentive to gobble up these homes is a great idea.
We have seen great interest in the idea of an expansion of the tax credit on Subprime Blogger. We would like to thank all the readers who have read and responded to our articles. The goal is to get 10,000 votes in favor of an extension and possible expansion of the tax credit. If we get enough votes we can take this to government officials and let them know how the public feels. If you would like to help please vote at the following poll:
First Time Home Buyers Tax Credit Extension Poll.
The more votes we get the more the public’s voice will be heard. Please pass this along to friends through email, Facebook, Twitter or whatever means of communicate that you use. If everyone just tells one person we can get enough votes to actually make a huge difference. Almost everyone sees a benefit from this extension because it reduces the amount of vacant homes on the market and it gives first time buyers extra money in their pockets.
As we stated earlier this week on Subprime Blogger, Senator Johnny Isakson, R., Ga, is pushing a bill to extend and expand the current first time home buyers tax credit. The bill would raise the maximum amount to $15,000 extend the tax credit to ALL home buyers and eliminate the the income caps of $75,000 for an individual and $150,000 for a couple.
Please return to Subprime Blogger to get all of your up-to-minute information on the first time home buyers tax credit extension. We will be sure to relay all the information to you as soon as we get it. As always, please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below. We offer information on everything from getting a lower mortgage rate to increasing your credit score.
Author: Jesse Wojdylo
Comments
17 Responses to “First Time Home Buyers Tax Credit Extension to $15000 in 2010?”
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October 16th, 2009 @ 4:52 am
Thanks for sharing this info, seems like if this extension happens like a lot of people will be taking advantage of this deal. I wonder if the info at http://www.firsthomeexperience.com/main/ might help. If you have a second could you take a look too? There are tips for buyers, info for realtors and a couple easy contests to enter.
October 16th, 2009 @ 6:06 am
Let me say first that I will be a first time home buyer in 2010. So I have an interest in the $15K. However, I’m still against it. This is not only bad economics, but a moral hazard.
Home prices are still far above the historic averages. The last Case-Shiller data I saw was $144K. It needs to fall to $100-110K at least given that $110-120K is the range for good times and this certainly doesn’t qualify as good times.
Most of the loans being made now (and next year) are FHA 3.5% down loans. Those have a high rate of default. Further if people that bought a house in 2008 with the 8K or next year with the 15K see the prices drop below the purchase price that will give an incentive to just walk away. Oh, and the 8K-15K has to come from somewhere. They are either going to borrow it (adding to our debt) or more likely just print it (making everyone’s dollar worth less).
What needs to happen is to organically get the prices down to a point where people actually want to purchase them by letting the market work. Unfortunately the people currently underwater are going to have to either keep paying, get foreclosed, or do a short sale. They signed the papers, they must deal with the consequence.
Bribing people to buy an overpriced house that will lose value isn’t smart, isn’t moral, and isn’t a real solution.
October 16th, 2009 @ 6:51 am
The credit should definately be extended.
October 16th, 2009 @ 7:05 am
If you want it passed you need the National Association of Realtors to call on all their realtors around the country to call their clients who have their homes on the market to call their Senators in Washington. If the people call in great numbers, it gets the attention of those who will vote on this bill and greatly increase the odds of the bill passing. I hope it passes and gets the market moving.
October 16th, 2009 @ 7:40 am
I feel it should be extended, but leave the terms as is,
October 16th, 2009 @ 8:43 am
Having the tax credit extended would be a great oppoortunity for first time home buyers like myself that is interested in buying within the next year.
October 16th, 2009 @ 9:57 am
My husband and I purchased our first home this year and qualified for the $8,000 credit. I think it is a good idea to extend the deadline, however, the amount should stay the same. By the way, it has been 16 weeks and we have yet to see the $8,000 check. I’m not holding my breath…
October 16th, 2009 @ 2:35 pm
We are looking for house for months and have not got a deal. We think the credit should definately be extended for a little while.
October 16th, 2009 @ 3:46 pm
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October 16th, 2009 @ 3:56 pm
I really hope it gets extended. I have been tied up in a short sale for over six months. It is the house of my dreams. I will be really disappointed if we don’t get the house in time for the tax credit. I just don’t think it is fair. We did everything we had to do to start the process of buying this house. Unfortunately, to the bank, I am just a file on a desk, not a person who has eagerly been waiting for an answer for six months. I hope congress knows that I am not the only one out there in this situation, and to be cheated out of my tax credit because the bank is taking it’s sweet time is just an unfair situation!!
October 16th, 2009 @ 6:49 pm
I purchased my home Sep/2009 my tax credit is 8,000 if the gov extend the credit to 15,000 what happen the new 15,000 credit apply to me??
October 17th, 2009 @ 7:34 am
This is an excellent idea. In addition to all the foreclorsures, there is an unbelievable amount of townhomes and condos being left completely vacant now. And, often it is prohibited in the bylaws for these owners to rent out. That is around 1,000 a month being thrown way for nothing.
October 17th, 2009 @ 12:58 pm
90% of our sales this year have been fthb’s. please!! let me know how i can help get the program extended. lynn west
October 17th, 2009 @ 1:18 pm
I’m a first time home buyer who attempted to buy one of these foreclosed homes owned by a bank. Even though the bank received bailout money to soften the blow of their bad investment, they decided not to accept my full-price offer because the FHA loan programs would have required them to replace the missing air conditioner. Now the home is being advertised as “no FHA or VA loans”. I think its a shame that they are allowed to take government hand-outs, and then deny the government loan programs that would take the home off their hands.
October 17th, 2009 @ 6:21 pm
I think the tax credit should be extended for people in contract but not closed by Nov 30th. Due to the incompetence of real estate personnel and the slowness of the system relating to mortgage approval I believe it should be extended since it is out our hands to close the property they are purchasing on time. I started my process in July and won’t be closed until December.
October 17th, 2009 @ 6:57 pm
I think the tax credit should be extended. I have submitted over 30 offers on bank owned homes since July 2008! And have always over-bid at least $15K-$25K over asking price…only to be in bidding wars against “INVESTORS”. The banks could care less if you are a “First-Time Homebuyer”, all they want is the highest “CASH” offer. I’m not picky, I don’t mind a fixer upper, all I want is a sufficient HOME for my family. Moving three times in one year (temporary/short term-leases) hoping and dreaming that a contract will be accepted. I could really use that tax credit to help with all the money I’m wasting in “moving” expenses.
October 23rd, 2009 @ 5:56 pm
Thanks for this incite. Very informative and will share with others. There’s so much informaion to learn.
Thank you, again.