The Mesquite Nevada Real Estate Blog

First time buyer credit - Mesquite NV - Housing Bill provides a $7500 tax credit

First Time Buyers in Mesquite NV - Housing Bill provides a $7500 tax credit for First Time Home Buyers.  (Not a Grant) If you are deciding whether or not to buy a home in Mesquite Nv now, or wait a bit longer, you might want to look at this excellent article written by Richard Smith.  Richard Smith is an experienced lender who provides loans in Tennessee, Georgia and Alabama.  He has graciously given me permission to use his article.

The first step in buying a home is to pre-qualify with a lender.  Call me if you would like to talk to a local lender to find out what loan you will qualify for.

Then you might want to search Mesquite NV MLS to see what your money will buy.

If you haven't owned a home in the last 3 years, you may qualify for this 7500 First Time Buyer credit.

UPDATE: $8000 First Time Buyer Credit

IRS Form 5405 First Time Homebuyer Tax Credit

The $7500 tax credit for first time home buyers is a significant incentive to purchase. It is a major image of dollar signpositive provision in the Housing Bill that passed Congress over this past weekend. This is a credit not a deduction, which means it directly reduces the taxes owed - dollar for dollar.

This gives the new home owner directly as much as $7500 cash in the pocket at tax refund time.

The credit incentive is retroactive back to April 9, 2008 and continues through June 30, 2009. The incentive is 10% of the purchase price up to a maximum of $7500.

The actual legislation that implements this tax incentive is called the Housing Assistance Tax Act of 2008 HR 5720. It is included as part of the massive Housing Bill HR 3221, that is waiting to be signed into law.

The incentive is available to individuals who make less than $75,000 and to couples who make less than $150,000. Above these income levels the incentive is reduced and is completely phased out at $95,000 for an individual and $170,000 for a couple.

The tax credit must be repaid over the next 15 years, and more quickly if the home is sold or is no longer the primary residence. Repayment is made by increasing the tax owed in the year the home status is changed (sold or no longer the primary residence). For more details on the tax credit and repayment provisions, please see a tax accountant.

A first time home buyer is defined as not having an ownership interest in a principal residence in the previous 3 years.

This credit can be good news for many first time buyers. Some reports indicate that over 2 million first time home buyers last year, and a large percentage of them would have qualified for such an incentive it had been offered last year.

It may offset some of the less good news for home buyers in the Housing Bill with the loss of seller funded down payment assistance


Richard Smith
Home financing in Tennessee, Georgia, and Alabama.
Experience matters when it is your home loan.

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                                 Mesquite Nevada Real Estate Agent  ~ ~  ERA

Virginia Hepp
 
Virginia Hepp ~ Mesquite Realtor
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Comment balloon 12 commentsVirginia Hepp - Mesquite NV REALTOR • August 10 2008 12:39PM

Comments

Virginia, another great reminder of an incentive for a first time homebuyer to get out there and purchase that home.

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) over 10 years ago

Thanks, Gary, Richard let me reblog it - it is so well written!

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 10 years ago

Virginia, this is certainly a good way to get valuable information to your clients.  John has good points above and these details will have to be addressed.

Posted by Erik Hitzelberger, Louisville - Middletown Real Estate (RE/MAX Alliance - Louisville REALTOR-Luxury Homes) over 10 years ago

Hi Viriginia - Even with your intro and the one-line credit, it's still unclear that this is someone else's content on your blog. I think we're understanding the reBlog process because we're actively looking for it, but will an occasional visitor get it? As a consumer, I would expect to see something about buying homes in Mesquite if I clicked on 'Purchase' instead of being taken to Richard's website.

Posted by John Novak, Henderson, Las Vegas and Summerlin Real Estate (Keller Williams Realty The Marketplace) over 10 years ago

Erik - I think you are right - I didn't consider that until John pointed it out here.

John -  I am looking at this post from the 'eye of a consumer' - You are right - I may try to add my logo on the bottom, not sure if it will help, Richard's buttons are very prominent.  And a reader would get to the bottom and forget about the intro and explanation at the top.  Maybe AR could put the original post in a frame, would that even help.

Perhaps next time, I will use a post without the prominance of that bottom logo.  Thank you.  I am going to send your comment to Jon.

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 10 years ago

John - I put our comments above on Bob's post - this is Bob's reply:

The current attribution says: via (author)

We are working on an attribution that is MUCH more prominent and includes a full header that separates the notes and the post and includes the original authors picture.

That sounds like a good solution.

 

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 10 years ago

Howdy Virginia

Virginia welcome to the group

to the A Exceptional First Time Homebuyers across America Group. Please think of this group as yours and the other members.

This is a really fine re-blog post. That First time buyer credit, sure will be of help to the folk's buying buying their first home.

Baker Home Inspection and Consulting

Posted by Dale Baker, New Hampshire Relocation Real Estate Information (Baker Energy Audits and Commercial Properties Inspections) over 10 years ago

Thanks, Dale - I am looking forward to being in the group - first time home buyers and loans for them are my specialty.

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 10 years ago

Virginia,  Good post.  I had received this information but had not taken time to read it.  It was easier reading in your post.  Thanks for writing it. :)

Posted by Ricki Eichler McCallum, Broker,GRI,ABR, - Your Coastal Bend Home Source (CastNet Realty) over 10 years ago

Ricki - Thank you, I liked the way Richard presented the info about the first time buyer tax credit - which is really for anyone who has not owned a home in the last 3 years.  Bonus for a lot of people!

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) over 10 years ago

Why is it a "first-time home buyer's credit"? Is it because they haven't had a chance to mess up their credit with a short sale or foreclosure? Once again the government discriminates in who it decides to help. LOL

Posted by Russel Ray, San Diego Business & Marketing Consultant & Photographer (Russel Ray) about 10 years ago

Russel - I wish they had a middle age person buyer's credit, but 7500 wouldn't help me enough.  Or how about an overpriced gas usage credit?

Posted by Virginia Hepp - Mesquite NV REALTOR, Mesquite NV Homes and Neighborhoods - Search MLS (ERA - Mesquite NV Homes For Sale) about 10 years ago

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