Comments on: 8000 Tax Credit Questions and Answers

By: Kay P.

Kay P. — Thu, 28 Jan 2010 23:59:29 +0000

Have a question for my friend. She and her husband are both retired, so they don’t file income taxes anymore. They haven’t owned house for more than 3 years. Now they want to buy a house. Would they be eligible for the tax credit? If yes, how does it work? Do they file tax on the house they purchased?

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Thu, 28 Jan 2010 14:57:47 +0000

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By: 100% Financing USDA Home Loans — Arizona Mortgage Team

100% Financing USDA Home Loans — Arizona Mortgage Team — Thu, 21 Jan 2010 21:06:44 +0000

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By: Shane Hollenback

Shane Hollenback — Mon, 04 Jan 2010 17:44:21 +0000

Judy, that’s a great question regarding buying on a land contract. I am not too well versed in them (land contracts), but understand it to be a purchase on an installment plan where the purchaser doesn’t actually own the property until the installment plan is completed. So, the seller remains the actual owner of record. Not knowing the full legalities, it is safe to assume the the buyer doesn’t really become a homeowner until they actually own the property, and would then not qualify for the tax credit. I could be wrong though. This is one that I would have your buyer consult with their tax professional… just to be safe.

Gary, I’ve had this come up many times, especially with a parent co-borrowing for their kid on an FHA loan. In all cases that I personally know of, the buyer was given the tax credit. However, I’ve heard conflicting responses from individual tax pros. Some say no problem, the kid is the homebuyer. Other say that the kid qualifies for half of the tax credit. This is another one that I would verify with your tax professional. If they advise you and prepare your taxes, they will stand behind you if it becomes an issue later.

S. Smith I know you wrote this a while ago, but I wanted to respond. There are lots of cases where people submitted for the tax credit without actually buying a home… I have heard it numerous times on the news. To those people… watch out. It’s only a matter of time before it’s found out. Logic would say that there will be penalties and that they would have to pay it back. After all, if they got a homebuyer tax credit and didn’t actually buy a home, they really didn’t qualify for the credit.

By: Judy McCullough

Judy McCullough — Mon, 04 Jan 2010 17:05:15 +0000

Just had a question from a client – we have a buyer that wants to purchase his home on land contract. Would a land contract be eligible for the tax credit? Thank you.

By: Justin McHood: Mortgage Commentator in 2010 — Arizona Mortgage Team

Justin McHood: Mortgage Commentator in 2010 — Arizona Mortgage Team — Fri, 01 Jan 2010 01:02:46 +0000

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By: Gary Walker

Gary Walker — Tue, 29 Dec 2009 00:25:53 +0000

My son just closed on his first home 5 days ago he signed as a first time buyer but my wife and I are on the morgage as well for co buyers. Would my son be eligible for the tax credit?

By: 8000 tax credit expansion and extension — Arizona Mortgage Team

8000 tax credit expansion and extension — Arizona Mortgage Team — Tue, 10 Nov 2009 15:41:30 +0000

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By: FHA To Allow 8,000 Tax Credit To Be Used As Downpayment?

FHA To Allow 8,000 Tax Credit To Be Used As Downpayment? — Fri, 30 Oct 2009 21:04:11 +0000

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By: s. smith

s. smith — Wed, 14 Oct 2009 21:40:59 +0000

I know alot of people that received the tax credit but did not purchase a home, what will be the penalties if any and will they have to pay that money back.