$8000 First Time Home Buyer Tax Credit | Housing Stimulus Dollars

The State of Washington is all set to go for the $8,000 tax credit bridge loan for first time homebuyers. However, the IRS is not. Currently, the way the $8,000 tax credit works for a first time homebuyer (a first time homebuyer is defined as someone who hasn't owned a home in the past 3 years) is he/she will purchase a home then file an amended tax return to get the tax credit. For the $8,000 tax credit bridge loan, the down payment would be advanced to the buyer thru a third party then paid back to the third party when the buyer gets their refund from their amended return. However, with an amended return the refund has to be mailed to the buyer at his/her current address. This is where the IRS comes in, the State of Washington and Washington Association of Realtors are working with the IRS to have the refund made payable to the third party handling the funds instead of the buyer. Personally,  I hope they get  the fund handling issue hammered out soon.

by Colleen Laneby Colleen Lane
The Lane Real Estate Team
(509) 438-9344 - Colleen cell
Feel free to call or text!
lanerealestate@gmail.com


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8 Responses to "$8000 First Time Home Buyer Tax Credit | Housing Stimulus Dollars"

DB wrote: Could you provide names/examples of a potential third-party? I'm assuming it won't be a bank, and if so, what type of interest would they charge on the $8,000?

Posted on Monday, June 1st, 2009 at 8:48pm.

Colleen Lane wrote: The details are still being hammered out for the specifics. More than likely the third party would be an escrow type company charging either a flat fee or nominal interest. Hopefully we will have the specifics soon. :)

Posted on Friday, June 5th, 2009 at 4:52am.

Bob Harris wrote: People who own a mobile home but pay rent for the land it sits on could they be considered as a first time home buyer? The rent on this little piece of dirt is higher than a house payment. This only makes the poor poorer not being able to sell. Where is the fairness in all of this?

Posted on Monday, June 22nd, 2009 at 4:43am.

bernice williams wrote: I need the money

Posted on Monday, June 29th, 2009 at 10:48am.

Chimere Epps wrote: I'm trying to purchase a home for the first time and need my to do accomplish just that. The $8,000 dollars will really help me out in succeeding my tasks.

Posted on Thursday, July 9th, 2009 at 9:46am.

catherine wrote: Does this stimulus tax break apply to land contract buyers?

Posted on Monday, October 26th, 2009 at 9:34am.

sarah wrote: How does this work if I am a new home owner of a habitat for humanity home? What do I do to get this refund, what paper work would I need?

Posted on Tuesday, March 30th, 2010 at 8:58am.

Joe & Colleen wrote: Hi Sarah, Simply call us and we can walk you through the details. ~ Joe, 509.308.5513

Posted on Friday, April 9th, 2010 at 4:52pm.