Biden $15,000 First-Time Home Buyer Tax Credit [VIDEO]

Video Transcript

the Biden first-time homebuyer tax credit fifteen thousand dollars for first-time home buyers when’s it going to pass will it ever pass what is it you’ll want to hear the details let’s get into it I’m Dan with homebuyer.com we are the mortgage company for first-time homebuyers and we’re an actual mortgage lender that works with actual home buyers which means we know what we’re talking about here mortgages are all that we do so before we start in you can be the first to know when mortgage rates drop when new programs for first-time buyers come out when discounts and Deals become available find the button says subscribe press it and you’ll get our videos right here in your YouTube feed and when you’re ready to get your mortgage pre-approved you can do that online in just three minutes at our website at homebuyer.com fast okay we talk about the first time home buyer tax credit which goes by a lot of names actually the Biden first time home buyer tax credit the fifteen thousand dollar first time home buyer tax credit the first time home buyer tax credit act abiding fifteen thousand dollar first time home buyer tax credit Biden buyer tax credit the Biden Harris buyer tax credit the buying home buyer stimulus program the fifteen thousand dollar homebuyer stimulus program and the first time home buyer act which is the Bill’s actual name when it was first proposed in Congress in the last Congressional session like most bills though the first time home buyer act died in committee without a vote that’s normal but now with Congress reconvened and with President Biden announcing another campaign run the fifteen thousand dollar first-time homebuyer tax credit is part of the administration’s unfinished business which is a theme of The Campaign the other major legislation the president last campaigned on the chips and science act the infrastructure and job act The Pact act all of that passed so the last remaining promise from the last campaign Trail is help for first-time homebuyers up a path to help renters stop renting and start owning to achieve their American dream of home ownership and one reason why we’re optimistic that first time home buyer tax credit will pass into law is because a blueprint for the plan is already in place a first-time homebuyer tax credit it’s not a new idea this plan is modeled after 2009 Obama era version that was a hit with home buyers and with home Sellers and gave eight thousand dollars to first-time buyers to buy their first home this new one this new bill it’s just an update same language as the last bill just a bigger credit and it’s tax credit not a tax deduction which means if your tax bill is fifteen thousand dollars you get the full credit your tax bill goes from fifteen thousand to zero and if your credit put your tax bill in the negative U.S treasury will send you a refund direct deposit write in your account no extra work no additional filings the details of the first time home buyer tax credit are straightforward to qualify you must be a first-time buyer so buying a home is your main residence and also you must earn an income that’s no more than 60 percent higher than in the middle household income for your area which if we apply the Pareto Principle roughly it means that everybody except for the top 11 percent of income earners for an area would be eligible for the first time home buyer act and to claim fifteen thousand dollar credit the program also has some stipulations first the credit is limited to 10 of your purchase price up to fifteen thousand so if you buy a home for 150 000 more you maximize your credit with a full 15K because that’s 10 percent of the purchase price if you bought home for 250 you also get fifteen thousand dollars because you hit the max but if you buy a home for fifty thousand your credit is five thousand ten percent on what you bought second the credit is refundable which means the government can take your credit back if you move or change your primary residence within four years of moving in so each year you stay you get to keep one fourth of your overall credit so if you move in here one you pay back 75 percent if you move in here too you pay back fifty percent your three you pay back a quarter and after four years no repayment is due there are exceptions if you move because of death divorce military transfers but for most people plan on staying in your house for at least four years third to use the program you have to be at least 18 years of age the first time home buyer act cannot be used by Miners and you must be buying your home from a non-relative in an arms length transaction so sales between relatives parents children spouse to spouse among siblings they’re disallowed if you want the fifteen thousand dollars speaking of claiming credit how you claim the credit that is one of the Bill’s best parts because you don’t have to actually do anything there’s no application to file there’s no extra paperwork the process of approval from a letter no nothing from the government uh if you buy a home and you meet the rules you check a box on your tax filing you give proof that you actually made the purchase and you get the credit automatically with no extra work now before the bill passes there are some open questions for example the way the bill is written it calls for first-time buyers to get a fifteen thousand dollar tax credit while also saying that the credit should change each year to match the rate of inflation so that means if the first time home buyer Act was voted on today would be the eighteen thousand dollar first time home buyer tax credit to match the cost of living increases of the last three years and if inflation still stays mild we could be looking at the twenty thousand dollar first time home buyer tax credit a few years from now so that that’s an open question another open question is will the bill be retroactive so the way the bill is written currently it says that all home purchases going back to the start of 2020 are eligible for inclusion no put every purchase from the last three years in consideration that seems unlikely to pass as is so will the new bill keep that language or will go back to the start of 2022 or just some other date we don’t know what what we’ll be watching for it third there are some other first-time home buyer builds are making your way through Congress too like the dash act which also gives fifteen thousand dollars first-time buyers you can read more about Dash act here or the down payment toward Equity act or the helper act or the small dollar mortgage program there are multiple ways that Congress is working to help today’s buyers we don’t know which bill will pass until out first but we expect at least one of them will and when these bills become law you can be the first to find out and get a head start on all your home buying competition find the Subscribe button here click it hit the Bell you’ll be on the short list for notifications when the first time home buyer act passes into law I’m Dan with homebuyer.com we’re the mortgage company for first-time homebuyers thank you for watching ask us your questions in the chat leave your comments I respond to everyone personally happy home buying