Wait, where do I read up on this program? I'm also through with my lease in Sept and have CDs for my 20% down payment coming to maturity in March. You are saying they will just give you $7500 for 0%? Why? This seems like a no brainer to knock down the total amount you need to borrow even above and beyond the first 20%.
edit: looks like it is limited to those with an individual AGI of $95,000 or a total AGI of $170,000
Wait, where do I read up on this program? I'm also through with my lease in Sept and have CDs for my 20% down payment coming to maturity in March. You are saying they will just give you $7500 for 0%? Why? This seems like a no brainer to knock down the total amount you need to borrow even above and beyond the first 20%.
edit: looks like it is limited to those with an individual AGI of $95,000 or a total AGI of $170,000
It's also only retroactive -- as in you can only apply for it after you've purchased a home, and it comes as an additional refund on your taxes. So it can't really be used to reduce what you have to borrow, though it could be used to pay off a chunk of your mortgage after the fact.
And again, it's only valid if you close by July 1st -- so if you're planning on buying in September or later you wouldn't be eligible unless they extend the program.
If you are buying this year, the government is giving you a $7500 interest free loan for 15 years. See your tax consultant for more information on this.
Has anyone heard any specifics about this loan and the new stimulus package? It looks like if the bill is passed as-is this will no longer be a loan, but instead, an out-right tax credit for first time home-buyers. I'm getting my info from the Wall Street Journal (check side bar in the link below). This is a huge plus for any first-time home buyers. Of course, as stated previously, you would have to purchase your home by July 1st to take advantage of this. Too early to celebrate, but I'm definitely thrilled with the proposed change.
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edit: looks like it is limited to those with an individual AGI of $95,000 or a total AGI of $170,000
It's also only retroactive -- as in you can only apply for it after you've purchased a home, and it comes as an additional refund on your taxes. So it can't really be used to reduce what you have to borrow, though it could be used to pay off a chunk of your mortgage after the fact.
And again, it's only valid if you close by July 1st -- so if you're planning on buying in September or later you wouldn't be eligible unless they extend the program.
Has anyone heard any specifics about this loan and the new stimulus package? It looks like if the bill is passed as-is this will no longer be a loan, but instead, an out-right tax credit for first time home-buyers. I'm getting my info from the Wall Street Journal (check side bar in the link below). This is a huge plus for any first-time home buyers. Of course, as stated previously, you would have to purchase your home by July 1st to take advantage of this. Too early to celebrate, but I'm definitely thrilled with the proposed change.
http://online.wsj.com/article/SB123202946622485595.html?mod=fox_australian