Because You Can Get a $8,000 Credit Doesn’t Mean You Can Afford a Home
by Tran, Harry ~ May 19th, 2009. Filed under: Quick Blast.Using the $8,000 as a down payment? Is it right?
What is another attempt from the government to try and stabilize the housing market may become the next pitfall in helping us in our attempt at an eventual recovery.
Most people who are utilizing these loans as down payments will end up using the $8,000 to buy up from their original affordability level thus causing them to over extend themselves. Another potential hazard in allowing people to use the money immediately on the down payment is that when tax season arrives many people may not have enough money remaining for their tax obligations because they threw it all on the down payment assuming that they could afford to pay their taxes when that time arises.
A final bit that needs to be analyzed is the fact that being able to qualify for the initial mortgage and the $8,000 tax credit doesn’t have any correlation to job stability, at this time it may be more sensible for people to save their money rather than commit themselves towards a mortgage without the stability of a job market to look forward to for making mortgage payments.
I predict that this will be another disaster in the making but it is something yet to be seen.
