Home Buyer Tax Credit Critique

I think the tax credit money will come in handy ["The $8,000 First-Time Home Buyer Tax Credit Program Expands: 5 Things to Know," usnews.com].

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I think the money will come in handy ["The $8,000 First-Time Home Buyer Tax Credit Program Expands: 5 Things to Know," usnews.com]. I am buying a home right now, and we have $20,000 saved. We were trying to figure out how much we should put down and how we were going to pay for the closing costs. Once we found out we could [use the $8,000], we were excited because now we could put a little bit more down and still have a few bucks left for other things that we would like to do in the house. My husband and I are really lucky because we were living with his parents and were able to save. Also we are lucky because we have government jobs and don't have to worry about losing them. I think the prices are so good now. We bought a 2,400-square-foot colonial for $330,000. A few years ago it was selling for $530,000, and it's only five years old. Well, I say good luck to anyone who is buying a new home.

Comment by Shannon of NY

I'm a Realtor in Temecula, Calif. I have a client who will benefit from this new rule. He has the 3.5 percent down for the FHA loan. The real estate owned inventory is too low in this area, and there are a lot more buyers than homes. He had to bid against multiple offers causing the price of the home to go substantially over listed price. That caused him to use up his cash reserve intended to recarpet the house and make some other repairs that were needed. Now he can use the $8,000 to make those repairs. It's a perfect example of getting the money back into the hands of the people and out of the government's hands.

Comment by Tim Ketterer of CA

Try living in San Diego paycheck to paycheck. Here I think, finally, home prices are falling enough to where maybe I can buy something. My hurdle was the 3.5 percent down payment, which is $7,000 on a $200,000 home. I was hoping to use the $8,000 tax credit as my down payment. Wouldn't the $8,000 tax credit be my money to use however I need it? So, now I can get the $8,000, but they want to tell me how to use it? How is this supposed to help us here in one of the most expensive places to live? My plan was to use the $8,000 for a down and make a deal with the seller to pay closing costs. Now what plan do I make?

Comment by Kristina of CA

I am a Realtor. With the market the way it is, you can always get the seller to cover closing costs. The down payment is what people need help with. This will help maybe 1 percent of first home buyers out there. This is a classic example of people in Washington having no clue as to what is going on in the real world.

Comment by J.R. Spence of OK


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