DISQUS

Consumerism Commentary: HUD Wants to Let First Time Home Buyers Use $8,000 Credit for Downpayment

  • Mr. ToughMoneyLove · 7 months ago
    This proposal from HUD just proves that our government has an endless supply of idiotic ideas. This is precisely the thinking that inflated the real estate bubble to begin with: I want it and I want it now and no silly thing such as SAVING for a down payment is going to get in my way. There must be an entire committee of government bureaucrats who are tasked with doing nothing except thinking up new ways to throw taxpayer money down the rat hole. This week, the committee is working at HUD.

    And what happens when we learn that thousands of home buyers are "borrowing" a tax credit that they aren't actually entitled to? More fraud opportunities, with more government employees needed to investigate fraud. It never ends does it?
  • Brandon Barkley · 7 months ago
    I suggested this idea on the GetRichSlowly forums about 3 months ago. Everyone balked at me like Mr. ToughLoveMoney does above. I think this is a great idea that helps make sure the money is used on the house and not on a vacation. Some cynics argue that prices will just inflate $8,000 to compensate. I am sure that could happen in some cases, but I do not think it is ubiquitous.
  • Mrs. Modern Tightwad · 7 months ago
    I think it could be a sound idea. For it to truly function well, I would think that HUD would have to place a priority lien on the individual's IRS dollars so that the money gets paid directly instead of counting on personal responsibility.
  • *flash* · 7 months ago
    Maybe I am missing something. The maximum the SSA. will allow clients on SSI to save is $2000.- food. clothing shelter is all SSI is for; and not taxes.

    $8000. plus $2000. would not buy an outhouse anywhere in CA that I know of.!

    Retired, fired, laid off could buy, but does not have continuing income to pay taxes on what he or she buy.

    Perhaps I am too tired at the end of the day to figure this out; but it sure seems questionable!
  • Micha · 7 months ago
    Using the First Time Homebuyers' Tax Credit as down payment is a pretty good idea in my book. If the FHA/HUD really pushes this through, it would do so much good to the ailing real estate industry.