Buy Hugh's House Calculator
Using the Federal Home Buyer Tax Credit
News Flash: Believe it or not,
we sold our house at 7.5% under our listing price. That may not sound too
great until you realize we purchased the more expensive house we bought at 15%
under the then reduced sales price, and more than 20% less than its original
And the person who bought our old house most likely is
a first time homebuyer who will receive the $8,000 tax credit, so I can honestly
say Obama's stimulus package has helped me sell my house. So it has helped me,
helped my buyer, the two realtors involved and helped everyone associated with
the sale here in St. Louis. Now we can take the sales proceeds and spend some
of the proceeds on our new house, and
our buyer will receive his tax credit and will probably spend a bit
making the house his own. More people buying houses and spending money in their
That is what the stimulus package was supposed to do!
That is what President Obama and Congress intended when they passed the
federal housing tax credit.
tax credit is $8,000 for any first time homebuyer or $6,500 for any repeat
buy a house until April 2010.
The state of Missouri also wants people to buy houses, and they are willing
give any first time buyer up to $6,750 up front to help buy it.
You will have to pay the state back with your federal tax credit after you
file your 2008 or 2009 taxes. The original 2008 $7,500 tax credit required
repayment in $500
increments over 15 years, but the new credit will not require any repayment.
The tax credits are fully refundable, which means if your tax liability is
less than the credit, you receive the balance as a check.
Let's look at the bottom line numbers after you get your interest free loan.
Since I know all the figures for our house all you need to enter is how
much you want
to put down, your interest rate (currently 4.75 to 5.75%) and your term
(15, 20, 30 or 40 years).
I am requiring a minimum downpayment of
3.5% (the FHA minimum) but you may be required to put 5% down if you do not
qualify for a
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