Full Version: When a Tax Credit isn’t Really a Tax Credit
I can't figure out why they are calling it a "credit" when it has to be repaid either.
QUOTE (radi8 @ Aug 22 2008, 05:00 PM) 
I can't figure out why they are calling it a "credit" when it has to be repaid either.
Agreed... it took me a short period of time before I discovered it was a no interest loan... Still I'll gladly take it and don't expect any setbacks in doing so. (I closed April 18th)
QUOTE (radi8 @ Aug 22 2008, 04:00 PM)
I can't figure out why they are calling it a "credit" when it has to be repaid either.
What I don't get (aside from the fact that it's simply not a tax credit) is, if I wanted to buy a house now, what I would need is cash -- NOW -- for a down payment. The prospect of receiving $10,000 next May does not help me buy a house this year.
And if I DID have enough cash for a down payment, this does nothing to help me buy the house, it's just a pointless handout I'd get later.
So this "tax credit for first-time home buyers" is not a tax credit and it doesn't much help anyone buy their first home.
QUOTE (Kevin20 @ Aug 24 2008, 07:40 PM)
QUOTE (radi8 @ Aug 22 2008, 04:00 PM)
I can't figure out why they are calling it a "credit" when it has to be repaid either.
What I don't get (aside from the fact that it's simply not a tax credit) is, if I wanted to buy a house now, what I would need is cash -- NOW -- for a down payment. The prospect of receiving $10,000 next May does not help me buy a house this year.
And if I DID have enough cash for a down payment, this does nothing to help me buy the house, it's just a pointless handout I'd get later.
So this "tax credit for first-time home buyers" is not a tax credit and it doesn't much help anyone buy their first home.
agreed its bogus
QUOTE (ukikkgr @ Aug 22 2008, 05:24 PM)
Agreed... it took me a short period of time before I discovered it was a no interest loan... Still I'll gladly take it and don't expect any setbacks in doing so. (I closed April 18th)
I'm with you on that! We were already planning to buy between March and May anyway. A 0% loan for 15 years is awesome! Even if we put it in a basic savings account it would pay to take advantage of it. 
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