Brian Vanderhoff's North Fulton Real Estate Blog

The Obama administration has not yet decided whether it should bring back a popular tax credit for first-time homebuyers, Housing and Urban Development Secretary Shaun Donovan said on Sunday.

"It's too early to say whether the tax credit will be revived," Donovan said in an interview on CNN's "State of the Union" program. He said the administration would "do everything we can" to stabilize the shaky U.S. housing market.
The analysis is based on the previous federal $8,000 homebuyer tax credit that boosted home sales reviving parts of the housing market. This credit expired several months ago, and things started going down.
The unexpectedly large drop in U.S. home sales in July has brought back fears that the nation could be on the cusp of another sharp drop in housing.
Donovan acknowledged that the data was worse than the Obama administration expected but said the government was already taking measures, including rolling out a refinancing program for some borrowers and an emergency loan program for the unemployed.
Some believe that bringing back the tax credit would help improve the current housing situation. However, those that oppose this idea, say it would blow a bigger hole in the federal deficit.
"I think it would help enormously," Florida Governor Charlie Crist, who is running as an independent for the U.S. Senate in the November elections, told CNN. "I would absolutely encourage the president to support that." His opinion was supported by U.S. Representative Kendrick Meek, a Florida Democrat, who said he also supported reviving the tax credit.
Last month, Obama signed a law giving consumers already in the process of buying a home three extra months to close the deal and still get the tax credit.
This means that homebuyers with contracts signed by April 30 who failed to go to closing by the original June 30 deadline will now have until September 30 to complete their purchases.

Labels: Georgia homes, Home, Home Buyers, home buying, homes, homestead tax relief grant program, tax credit

Check out what you can save by installing new stuff in your home - you can earn a Tax Credit of 30% of the cost, up to $1500.

Products: Exterior Doors, Roofs (Metal or Asphalt), Insulation, Central Air Conditioner and Air Source Heat Pumps, Water Heaters and Natural Gas Furnances.

For complete details go to: www.energysta.gov/taxcredits

Labels: energy star, Georgia, tax credit

For homebuyers who are eligible for the First-Time Home Buyer Tax Credit, purchasing a new home before filing 2008 taxes will result in the fastest payback. Homebuyers who have not owned their primary residence in the last three years may be qualified to receive the credit.

The First-Time Home Buyer Tax Credit provides a tax credit of up to $7,500 for homes purchased between April 9, 2008 and June 30, 2009. Buyers who purchase their homes in 2009 may elect to treat the purchase as if it occurred on December 31, 2008, so they may receive their tax credits earlier.

Homeowners who meet annual income requirements (up to $90,000 for single and $170,000 for married can receive partial credits) will receive 10 percent of the price paid for their homes back as a tax credit, up to $7,500. After two years, recipients will begin to pay back the credit as a no interest loan over the course of 15 years. For example, homebuyers who receive a $7,500 tax credit with their 2008 filings will begin paying back the government $500 a year beginning in 2010. For most homebuyers, “paying back” will not require an extra payment to the government; rather it will mean a reduction in their annual tax refunds. For more information on the tax credit, visit www.federalhousingtaxcredit.com.

Labels: 2008, federalhousingtaxcredit.com, first time home buyer tax credit, new homebuyers, tax credit