Another Angle at the $8,000 Tax Credit as a Down Payment
by Tran, Harry ~ May 20th, 2009. Filed under: Quick Blast.Tax Credit as Mortgage Down Payment Now Official Federal Government Policy
Another attempt to try and game the system. Throw a bone at a few hungry dogs and they will definitely bite the treat. But as sweet and savory as the treat may be, is it really beneficial that we’re giving them this treat? A treat that for many who receive it may not be able to afford their enormous appetite. There is a great article found here that goes on to explain how many ex-homeowners have begun to feel burnt by the illusion of being a homeowner and don’t want to jump back into the real estate market, what the government is essentially trying to do is draw everyone who has already said never again back into the market with this feeble attempt.
Anyway, if you went into foreclosure once because of irresponsible borrowing, $8,000 on a down payment is not going to save you from it happening again.
From what I can tell you, there are more than a few families out there who are looking forward to being able to finally afford a house because they realize that they could use the $8,000 as a down payment. To them this would definitely assist them in making their loan obligations, but there was a point a few days ago where the government was deciding not to let the tax credit be used as a down payment and a lot of families ended up getting turned down from their mortgages. This goes to show that if you need to rely on this to afford your home than its not the right time for you to purchase one.
This reminds me of the sub prime debacle where families tried to take advantage of the system that was set up by the government to purchase a home they could not afford without the help. This $8,000 is another “Make Homes More Affordable” program created by the government which will inevitably create more damage than benefits.
