2009 Stimulus First Time Homebuyer's Credit Changes

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Monday February 02, 2009 · 5:41 PM PST

2009/02/02 · 17:41

As the debate has begun in the Senate over the Economic Recovery Bill, I've paid great attention to the changes in the 2009 First Time Homebuyer's Credit. As the bill currently stands, if you purchased a home from April 2008-June 2009, you receive a $7500 tax credit that is repaid over 15 years, which is a 0% loan from the government, to be paid back at $500 per year.

Well, the economic stimulus package has changed this, and as a first time homebuyer, I'm not too thrilled, but hopeful.

My wife and I purchased our first home in late September 2008 after more than a decade of renting. We put down 15% and were enticed by the Homebuyer's credit. That was $7500 that we could use to improve the house, no, not do some type of fancy remodel that doomed the housing market, rather home improvements from new light fixtures to landscaping, etc.

In the H.R. 1, the new economic stimulus bill states the following:

"SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST-TIME HOMEBUYER CREDIT.

(D) WAIVER OF RECAPTURE FOR PURCHASES IN 2009- In the case of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before July 1, 2009"

Basically, if you buy a house this year, you don't have to pay the money back. Now, a push from Johnny Isakson, our Senator here in Georgia (I still can't believe I moved to a place with Senators like the..ugh), he'd like to double the first time home buyer's credit to $15,000 with no repayment. Additional changes include using the money to put down as a down payment or to pay closing costs instead of it being redeemed through a tax credit.

What I'm wondering on the Kos, is who around bought a home with the tax credit in mind? My wife and I bought a home when the market was basically stillborn and were among the few supposedly helping the economy when it tanked. I'm truly annoyed to think the anyone who buys a home now will not only get twice the amount, but have to repay 0.0.

At the least, the bill should be amended for those who purchased homes under the terms of the current standing law should have a zero payback. Many of us sunk a lot of money into the system when no one else did and we're supposed to owe on money that countless others will get and quite possibly at a much higher sum. I'd like to hear from others out there and hopefully a good Senator's office will be reading to alert the Senate to what I see as a fundamental flaw in the changes to the law.

Poll
78 votes Show Results
Did you buy a home after April 2008?

Yes

Yes, and I'm taking the home buyer credit

Yes, but I'm not taking it because I don't want to owe $500/yr for 15/yrs

No

I couldn't get a loan

78 votes Vote Now!
Did you buy a home after April 2008?

Yes

12 votes

Yes, and I'm taking the home buyer credit

39 votes

Yes, but I'm not taking it because I don't want to owe $500/yr for 15/yrs

9%

7 votes

No

16 votes

I couldn't get a loan

5%

4 votes

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