Is the First-Time Home Buyer Tax Credit being Extended?

The $8,000 first-time home buyer tax credit is set to expire December 1, 2009.  My industry and the Mortgage Bankers Association are “very close” to getting a bill signed in Congress to extend the credit into some time next year.

First-time home buyers came out in force this summer to capitalize on the tax credit boosting home sales and mortgage applications.  It didn’t hurt a bit that interest rates on mortgages remained low throughout the summer and now into fall.  It was refreshing to see so many eager buyers participate in the biggest real estate price correction we’ve seen in years.  Especially in my county where homes just three years ago were untouchable by first-time buyers and the only affordable housing was in the out lying areas to the East (Inland).

Here where I live in Orange County, California, a young professional just starting out can finally afford a condo or entry level home.  In my opinion, if first-time home buyers loose the tax credit, we risk the stability that is creeping back into the housing market and the economy overall. Come on Congress, “get off the fence and take care of this quickly!”

At least 20 bills have been drafted regarding the extension of the credit.  Some proposals would extend the first-time buyer credit into next year and open it up to include all buyers.  Removing the income restrictions will help more buyers in Southern California and other higher cost housing markets across the country.

For those who purchase a home this year, the tax credit is for 10% of the purchase price, up to $8,000. Those who have owned a home in the past three years aren’t eligible. That stinks!  All buyers should have the same opportunity.  Currently buyers must meet eligibility requirements regarding income; the current credit begins to phase out for singles who make more than $75,000 and couples who make more than $150,000.

An extension on the tax credit would be a major victory for the housing industry.  As new developments arise and we get closer to the expiration of this year’s credit, I will post more information relevant to this subject.

You can get more information on the website below:

http://www.federalhousingtaxcredit.com/2009/index.html

For those buyers dealing with credit issues and high debt, make sure you contact me for a “no-obligation” consultation on how “YOU” can get Mortgage Ready to capitalize on this incredible price correction and get your Federal Tax Credit dollars sooner than later.

Call me directly at (949) 459-6888 or send an email to mailto:CreditNDebtWise@gmail.com.

Gail P. Rogers
Your Debt Resolution Expert

Are Your Credit Issues Preventing You From Buying A Home and Getting The $8,000 Tax Credit?

If you answered yes to the above you need to understand your credit and why “good credit” is an absolute necessity in today’s economically challenging times.  You “must participate in your own recovery.” Yes, that means You need to be wise about your credit and debt situation.  Not only wise, but realistic.

Does Enough Good Credit Offset Bad Credit?

Any amount of bad credit can be devastating to your chances of being approved by a credit grantor.  Most credit grantors don’t even look at your credit report; a computer does.  The computer pulls your credit report, rates your credit standing, income, indebtedness and stability and then the computer spits out an acceptance or denial.  Even one or two slow pays will usually trigger a loan denial.  The slightest amount of negative credit could cause the interest on an auto loan to skyrocket.  You will probably find that even a “little” bad credit, regardless of how much good credit you have, becomes a barrier to being approved for any line of credit.

Does Paying Off Past-Due Accounts Clear Up The Negative Status?

Unfortunately, no.  Paid but at one time delinquent debt still shows up as a severe negative.  It is important to remember that credit reports don’t just show your current credit status, but they also show what your credit situation has been in the past.  Therefore, past delinquency, collection activity or a charged off listing does a great deal of damage to the credit score, even if it was paid off.  This is one of the ironies of the credit reporting system; paying off your past due debts does little to immediately increase your credit score and may actually make the score worse.

Call me directly at (949) 459-6888 or send an email to mailto:CreditNDebtWise@gmail.com.

Gail P. Rogers
Your Debt Resolution Expert