I'd take Bond Money over the new Tax Credit any day
I'd take Bond Money over the new Tax Credit any day...
What? Let me explain and bring you up to speed.
Our government passed a new tax incentive for first time homebuyers as part of their new housing bill. Awesome! One of the first things they've done right to help the housing market correct! It's an odd tax rebate though. It's essentially a $7500 interest-free loan from the IRS that you pay back over 15 years. That's great if you want to improve the house you just bought. Great also if you just stick it in a money market account and let it earn interest while you pay it back. And not hard to pay back if you're the type that usually gets a tax refund every year.
One of the catches is you're not eligible if you finance your home with Bond programs such as the Ohio Bond Money program that's very popular right now. Folks who just completed their first purchase with this program may be bummed at first to find out they don't qualify for the tax "rebate." But actually, they are making out far better.
You see, as I understand it, Bond Money programs are a government initiative to encourage first time homebuyers (not too unlike this new rebate). But the key is, at the time I write this the interest rate on a Bond Money loan is a half of a percent lower than a regular FHA loan (which WOULD qualify for the rebate).
I would take a fixed interest rate that's 0.5% lower over a $7500 interest-free loan ANY DAY OF THE WEEK. This lowers your payments by hundreds if not thousands per year, depending on your loan amount. That's money in your pocket every year you own the home, and you don't have to repay it!
Here's a summary of the new tax rebate for first time homebuyers:
http://www2.cabr.org/files/homebuyer-tax-credit-Q&A7-29-08.pdf
Perhaps some loan officers from the blogger community will weigh in on whether I've nailed this or not...
All this said, there are income limits to the Ohio Bond Money program. So if you don't qualify for it and you are going to buy your first home, the tax rebate may be quite beneficial to you. I mean, where else can you borrow $7500 interest free?
The rebate program goes through October 2009. So guess what...it's time to buy!
Contact me if you have any questions, want to take advantage of historically low interest rates, or are ready to borrow the government's money interst-free!
What? Let me explain and bring you up to speed.
Our government passed a new tax incentive for first time homebuyers as part of their new housing bill. Awesome! One of the first things they've done right to help the housing market correct! It's an odd tax rebate though. It's essentially a $7500 interest-free loan from the IRS that you pay back over 15 years. That's great if you want to improve the house you just bought. Great also if you just stick it in a money market account and let it earn interest while you pay it back. And not hard to pay back if you're the type that usually gets a tax refund every year.
One of the catches is you're not eligible if you finance your home with Bond programs such as the Ohio Bond Money program that's very popular right now. Folks who just completed their first purchase with this program may be bummed at first to find out they don't qualify for the tax "rebate." But actually, they are making out far better.
You see, as I understand it, Bond Money programs are a government initiative to encourage first time homebuyers (not too unlike this new rebate). But the key is, at the time I write this the interest rate on a Bond Money loan is a half of a percent lower than a regular FHA loan (which WOULD qualify for the rebate).
I would take a fixed interest rate that's 0.5% lower over a $7500 interest-free loan ANY DAY OF THE WEEK. This lowers your payments by hundreds if not thousands per year, depending on your loan amount. That's money in your pocket every year you own the home, and you don't have to repay it!
Here's a summary of the new tax rebate for first time homebuyers:
http://www2.cabr.org/files/homebuyer-tax-credit-Q&A7-29-08.pdf
Perhaps some loan officers from the blogger community will weigh in on whether I've nailed this or not...
All this said, there are income limits to the Ohio Bond Money program. So if you don't qualify for it and you are going to buy your first home, the tax rebate may be quite beneficial to you. I mean, where else can you borrow $7500 interest free?
The rebate program goes through October 2009. So guess what...it's time to buy!
Contact me if you have any questions, want to take advantage of historically low interest rates, or are ready to borrow the government's money interst-free!
Labels: first time homebuyers, home sales, homebuyer tax credit, housing bill
posted by Jamie Mandel | 8:25 PM
2 Comments:
its very nice post . great interesting
Interesting post
Post a Comment
<< Home