{"id":8526,"date":"2009-05-20T15:07:26","date_gmt":"2009-05-20T22:07:26","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=8526"},"modified":"2009-05-20T15:30:44","modified_gmt":"2009-05-20T22:30:44","slug":"8526","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8526\/8526\/","title":{"rendered":"$8,000 Tax Credit Advance Friend or Foe?"},"content":{"rendered":"<p>I have been following the $8,000 Federal Tax Credit with great interest this year. Currently it is the most talked about topic that I am discussing with potential home buyers. There is a lot of interest in receiving $8,000 when a first time buyer files their taxes for 2009. Now that many states (Washington being one of them) are discussing ways to use the $8,000 tax credit as a way to help first time home buyers get into their homes through bridge loans the discussions have really become spirited. When HUD announced that they would allow the $8,000 tax credit as collateral for &#8220;bridge loans&#8221; to cover the down payment on FHA insured mortgages the pot literally boiled over with opinions.<\/p>\n<p>Currently it seems on a daily basis that the $8,000 tax credit advance is in the news for one thing or another. Yesterday the Arizona Republic announced <a href=\"http:\/\/www.azcentral.com\/arizonarepublic\/business\/articles\/2009\/05\/18\/20090518biz-downpayment0519.html\">that the tax credit would be ineligible for down payment.<\/a> Later in the afternoon the Seattle Post Intelligencer announced that the <a href=\"http:\/\/blog.seattlepi.com\/realestatenews\/archives\/169055.asp\">Feds still plan to allow use of tax credit for down payments<\/a>. \u00a0Today the Arizona Republic reports the <a href=\"http:\/\/www.azcentral.com\/arizonarepublic\/business\/articles\/2009\/05\/20\/20090520biz-downpayment0520.html\">HUD bridge loan program hasn&#8217;t been killed.<\/a> So what exactly is going on with the $8,000 tax credit advance? It would appear that nobody even HUD and FHA really know. I am sure that by the time I actually publish this post there will be something new to report.<\/p>\n<p>What I want to know is what the readers of Bloodhound Blog think of the $8,000 tax credit and in particular what you think of allowing the tax credit to be used towards a buyer&#8217;s down payment?<\/p>\n<p>I will go on record that I feel that this makes sense in some particular situations and with some additional requirements on the borrowers.<\/p>\n<ul class=\"unIndentedList\">\n<li> Potential home buyer has the income to cover the complete cost of home ownership out of their current income. The ratios must be well within the FHA guidelines.<\/li>\n<li> The credit score of the home buyer is greater than 675. There is no need to allow marginal credit worthy buyer&#8217;s even easier access to borrowing money that they <a href=\"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8526\/8526\/#more-8526\" class=\"more-link\">Read more<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>I have been following the $8,000 Federal Tax Credit with great interest this year. Currently it is the most talked about topic that I am discussing with potential home buyers. There is a lot of interest in receiving $8,000 when a first time buyer files their taxes for 2009. Now that many states (Washington being [&hellip;]<\/p>\n","protected":false},"author":59,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[251,26],"tags":[],"class_list":["post-8526","post","type-post","status-publish","format-standard","hentry","category-big-mother","category-lending","no-featured-image"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":12341,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12341\/first-time-home-buyers-tax-credit-the-morning-after-the-governments-gift-to-new-home-buyers-a-house-immediately-worth-8000-less-than-they-paid-for-it\/","url_meta":{"origin":8526,"position":0},"title":"First time home-buyers tax credit, the morning after: &#8220;The government&#8217;s &#8216;gift&#8217; to new home-buyers? A house immediately worth $8,000 less than they paid for it.&#8221;","author":"Greg Swann","date":"June 22, 2010","format":false,"excerpt":"From the National Review Online:Things are looking worse on the housing front, with a severe drop-off in existing home sales following the expiration of the home-buyer tax credit. It's hard to overstate how stupid this policy was. The government marketed it as a measure to boost residential real-estate prices by\u2026","rel":"","context":"In &quot;Big Mother&quot;","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10155,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10155\/driveby-economics-8000-price-cut\/","url_meta":{"origin":8526,"position":1},"title":"Driveby Economics &#8211; $8,000 Price Cut?","author":"Tom Vanderwell","date":"October 22, 2009","format":false,"excerpt":"I had coffee yesterday with a long time friend of mine who works for a local title company.\u00a0\u00a0 We were talking about a variety of things, including some of the new stuff I'm working on on the web. The topic came around to the $8,000 First Time Home Buyer Tax\u2026","rel":"","context":"In &quot;Group Therapy&quot;","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10082,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10082\/estimate-to-extend-the-home-buyer-tax-credit-167-billion-what-a-bargain\/","url_meta":{"origin":8526,"position":2},"title":"Estimate to extend the Home Buyer Tax credit? 16.7 Billion What a Bargain!","author":"Scott Cowan","date":"October 14, 2009","format":false,"excerpt":"I was passed along an article today from the WSJ discussing the cost to extend the $8,000 tax credit and to open it to all people purchasing a home would cost $16.7 Billion according to congressional analysts. The article goes on to state that this is less than expected and\u2026","rel":"","context":"In &quot;Big Mother&quot;","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8909,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8909\/getting-a-15000-tax-credit-when-you-purchase-your-next-home-could-be-as-easy-as-stealing-candy-from-a-baby\/","url_meta":{"origin":8526,"position":3},"title":"Getting a $15,000 tax credit when you purchase your next home could be as easy as stealing candy from a baby&#8230;","author":"Greg Swann","date":"June 14, 2009","format":false,"excerpt":"This from my Arizona Republic real estate column (permanent link): So we started with a $7,500 tax deduction for first-time home-buyers. But that didn't juice the real estate market enough, so we bumped the number up to $8,000 and made it a full-blown tax credit. If you owe $8,000 in\u2026","rel":"","context":"In &quot;Big Mother&quot;","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14590,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14590\/more-thrilling-real-estate-math-from-the-national-association-of-realtors-how-much-did-first-time-home-buyers-benefit-from-their-8000-tax-funded-subsidy-can-you-count-to-negative-15000\/","url_meta":{"origin":8526,"position":4},"title":"More thrilling real estate math from the National Association of Realtors: How much did first-time home-buyers benefit from their $8,000 tax-funded subsidy? Can you count to negative $15,000?","author":"Greg Swann","date":"May 11, 2011","format":false,"excerpt":"You read that right. On average, recipients of the $8,000 federal housing subsidy lost $15,000 on the homes they purchased using the subsidy as their incentive. From SmartMoney.com:The government's recent $8,000 cash incentive for first-time home buyers has proved even more costly for recipients than for taxpayers, according to data\u2026","rel":"","context":"In &quot;Group Therapy&quot;","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10168,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10168\/the-bad-news-tens-of-thousands-of-people-including-irs-agents-and-including-at-least-one-four-year-old-fraudulently-claimed-the-8000-first-time-home-buyers-tax-credit-the-good-news-when-these\/","url_meta":{"origin":8526,"position":5},"title":"The bad news: Tens of thousands of people, including IRS agents and including at least one four-year-old, fraudulently claimed the $8,000 first-time home-buyer&#8217;s tax credit. The good news? When these morons take over your health care, you&#8217;ll probably die before you suffer too terribly much&#8230;","author":"Greg Swann","date":"October 25, 2009","format":false,"excerpt":"From Politics Daily, the you-just-can't-make-this-shit-up section:Four-year-olds are adorable, trustworthy, and, having never owned a home before, fully eligible for the first-time homebuyer tax credit that Congress passed in 2008. As a result of that loophole and numerous faulty reporting mechanisms, a House panel learned Thursday of tens of thousands of\u2026","rel":"","context":"In &quot;Big Mother&quot;","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=8526"}],"version-history":[{"count":3,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8526\/revisions"}],"predecessor-version":[{"id":8529,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8526\/revisions\/8529"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=8526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=8526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=8526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}