Home Lien Loan Tax

Posted on November 18, 2011 by Admin
Home Lien Loan Tax

Home Lien Loan Tax

According to the S&P/Case-Shiller National Home Price index, the prices of the homes fell by 19.1% during the first three months of 2009. The index has plummeted a total 32.2% from its July 2006 peak and has continuously fallen in 32 straight months. Alarmed by the continuous fall of home prices despite the $8000 first-time home buyer tax credit program and other incentives to home buyers, the federal government is offering a fresh initiative to lure the still-hesitant home buyers. It has made some modifications in the $8000 first-time home buyer program to make it more attractive to first-time home buyers.

$8000 Towards Down Payment and Closing Costs

One of the major drawbacks of the $8000 first-time home buyer program was that home-buyers would not get the $8000 until after they had submitted their tax returns for the year 2009. This meant that the money could not be used for down payment and closing costs. The new changes will allow the home buyers to take short-term loans from the $8000 tax credit, which will make the $8000 available instantly.

"For first-time home buyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman, in a news release. "This important change gives qualifying home buyers cash they do not have to pay back."