First time homebuyer tax credit

[Piecey]

Just like insurance companies deciding what kind of treatments are covered and what isn't? It's really their call as to what kind of service they allow you to receive because hey, they're really paying for it....

Insurance is a service that we PAY for... it's not the same thing at all. I have two forms of health insurance-- neither of them dictate what kind of service I am allowed to receive, they dictate what they're going to pay for and that is something I agreed to PRIOR to purchasing their plan. How is that at all the same thing???

The government is handing this money out- all you have to do is be a first time home buyer... meaning you need to actually buy the house to be eligible for it. If it were meant to help someone get a mortgage in the first place it should be titled the "Trying to Buy a House Tax Credit". ...

DH and I did have a very unique situation which we benefited from immensely, I will admit that... but everything we got, we EARNED. I worked for the bank for two years, got laid off for 9 months and went back to work for them to get our bank fees waived on the mortgage. DH was enlisted in the Marines to get the VA loan. He was injured and got some additional fees waived. Nothing was handed to us, it was perks of the choices we had made in our lives.
It's not like someone handed us a check (like it seems you're saying you want the government to do) and said "Here, we're going to help you get this mortgage just because."

 

[CPT Tripss]

Housing markets differ, as I said -- usually the average income of an area correlates to the home costs. So if you're in an area where you need more than $200K to buy a decent home, the average income also is high enough to afford that.

Now, if you can afford the monthly payment on a $250K mortgage loan, that is one thing -- but when you own a home, you have to maintain it. My sister bought a house for $125K and one month later had to spend $30K on an unseen plumbing problem. If you don't have a healthy savings, you will end up losing the house or putting these unexpected expenses on a credit card and paying high interest on them, or taking out home equity loans that end up being more than the value of the house. Again -- it is simply the wise thing to do to save up money for your future house. Too many people today live paycheck to paycheck and they are only one major financial crisis away from losing their homes.

-Dorothy (LadyZolt)

Did she get a professional home inspection before buying? Did she purchase a home warranty?

I have to tell you that around here, you don't want to live in a $125,000 house - bad neighborhoods and shoddy houses.

The percentage of the down payment is not the be all and end all of judging whether one can afford a particular home. DD is going into a low down payment purchase, PIT will be only slightly more than she has been paying in rent. For the short time she has been renting, she has been paying down her student loans much faster than required. I have no doubt she will afford the house. Unfortunately, she doesn't qualify for the first time homebuyer credit even though it's her first home.