Will you claim the First-Time Home Buyer Tax Credit?

First-Time Home Buyer Tax Credit at a Glance

The tax credit is available for first-time home buyers only.

The maximum credit amount is $7,500.
The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.

Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Federal Houseing Tax Credit FAQ LINK

Re: Will you claim the First-Time Home Buyer Tax Credit?

Not sure if we will ... It looks like relief, but it's really just a break they're giving to help first time buyers with the initial surge. Of course, it's something that would help, but it's basically a loan.

Re: Will you claim the First-Time Home Buyer Tax Credit?

it still looks like a great idea. i can use that money for CAC and start paying it back in 2 years for only $500 a year interest free. and it looks like it comes right out of the tax check, so it's like it doesnt hurt you. i'm loving this idea.

Re: Will you claim the First-Time Home Buyer Tax Credit?

i'm loving it too ...

i just wish it was FREE money!

Re: Will you claim the First-Time Home Buyer Tax Credit?

Posted by PreshusSmurf

i'm loving it too ...

i just wish it was FREE money!

Re: Will you claim the First-Time Home Buyer Tax Credit?

I found this on a website when I was doing a search. If you don't need it to pay off debt or do home improvement, just take it and invest it:



Although this is a loan, it’s a 0% loan and last time I checked, you can’t get those anywhere. With a $7,500 tax credit at 0% on a 15 year term the yearly payment would be around $500. This $500 would be deducted from your tax return for the next 15 years.

However, another thing to consider is when you own a home; you have far greater tax deductions. In fact, I wouldn’t be surprised if your tax return is more than it was prior to owning a home, even after the $500 was deducted! So, in essence, the $7,500 is FREE money!

If you think about it, let’s say you bought your home in February of 2009 and you elected to receive your tax credit for your 2008 tax return. You get $7,500 plus your normal tax return. The first yearly payment isn’t due until 2010. You could invest that $7,500, earn a measly 6% return, and that would almost cover your full payment for 2010!

If you keep the $7,500 invested, you get to take advantage of the most powerful force on earth, compound interest! Come 2011, you’re already making a profit every single year. Don’t let this tremendous opportunity pass you by!

Re: Will you claim the First-Time Home Buyer Tax Credit?

yes, it's an interest free loan. even if i use it to pay of CC debt, it makes sense.

Re: Will you claim the First-Time Home Buyer Tax Credit?

Yeah baby! We sure will!

Re: Will you claim the First-Time Home Buyer Tax Credit?

It figures, we closed on April 1, 2008

Re: Will you claim the First-Time Home Buyer Tax Credit?

That sounds amazing! What a great thing. It really is free money.

Is it really only for 2008 purchases?

What about 2007, why don't we get something!

Re: Will you claim the First-Time Home Buyer Tax Credit?

I heard about this last week...

DH & I are definitely taking advantage of this!!!

Re: Will you claim the First-Time Home Buyer Tax Credit?

I still cannot believe we closed 8 DAYS too early to qualify for this!

Re: Will you claim the First-Time Home Buyer Tax Credit?

Re: Will you claim the First-Time Home Buyer Tax Credit?

You have to pay it back, but if you put it in a high yield savings or CD, in 15 years you will make it back in interest, so I think it's good to leave it in an account for "just in case" money

Re: Will you claim the First-Time Home Buyer Tax Credit?

We don't qualify for the credit, but I don't really understand it... is it just an incentive to buy? People that are buying now under stricter lending requirements are not the ones struggling with payments. The people that are struggling bought a few years ago under loose lending standards and they can't afford their rate resets. Wouldn't it be better to help those people so that their homes are not foreclosed and there won't be as much inventory on the market reducing home values...

Another example of our backwards government.

Re: Will you claim the First-Time Home Buyer Tax Credit?

I def feel bad for those people that are stuck in the mortgage crisis, but at the same time, I can't believe that they didn't budget themselves, or ask themselves what their payments would be in 3-5 years. I mean our mtge broker told us we could afford a house for 250k over what we can????? We are not going to buy a 650k hous ejust cause he said so. These people should have researched more !!!!!!

Re: Will you claim the First-Time Home Buyer Tax Credit?

Re: Will you claim the First-Time Home Buyer Tax Credit?

I think it's more to help you out with the first year of owning a home. Between 20% down and 15-25k closing costs people can't afford it. the $7500 will give you a little push for that first year to get you settled on your budget, but like I said before if you put that money into a CD or high yield savings, it will eventually turn into free money !

Re: Will you claim the First-Time Home Buyer Tax Credit?

Looks like my cac will be coming out of this 7500.00

Re: Will you claim the First-Time Home Buyer Tax Credit?

most definitely! probably put it into savings and make some money off of it.

Re: Will you claim the First-Time Home Buyer Tax Credit?

The question should be why wouldnt you claim it.....I cant find a good reason why someone wouldnt want to take advantage of tax free money.

You pay 500.00 a year for 15 years and it comes right out of your tax refund so its not as if you are really going to miss it imo.

Re: Will you claim the First-Time Home Buyer Tax Credit?

Posted by jen919ifer

I think it's more to help you out with the first year of owning a home. Between 20% down and 15-25k closing costs people can't afford it. the $7500 will give you a little push for that first year to get you settled on your budget, but like I said before if you put that money into a CD or high yield savings, it will eventually turn into free money !

Re: Will you claim the First-Time Home Buyer Tax Credit?

Bumping to see if everyone is still on board for this.

We originally weren't going to do this but now it just sounds like a good idea!

Re: Will you claim the First-Time Home Buyer Tax Credit?

We are planning on it! We are going to pay off the CC we used to fix up the house, and the rest will go towards our other CC.

Can't wait to knock out my CC payments!

Re: Will you claim the First-Time Home Buyer Tax Credit?

If I qualified, I would be claiming it. It's an interest free loan!