The $15,000 First-Time Home Buyer Tax Credit Act of 2024 [NEW!]

Today's current mortgage rates: homebuyer.com/mortgage-rates
First-Time Homebuyer Tax Credit Act: homebuyer.com/learn/15000-fir...
Exciting news for first-time home buyers! The Biden First-Time Home Buyer Tax Credit Act is making a comeback in both the House and the Senate, and it's better than ever.
In this video, Dan from Homebuyer.com goes deep into the revamped First-Time Homebuyer Tax Credit Act of 2024, breaking down how you can benefit from up to $15,000 in tax credits, the eligibility criteria, and the path to making this bill a reality. Whether aiming for a zero down payment or needing help covering closing costs, this tax credit can be a significant update in your home-buying journey.
Key Highlights:
* Learn about the updated flexibility of the First-Time Homebuyer Tax Credit Act
* Discover two ways to receive your $15,000
* Eligibility criteria, including income limits and property price limits
Find out how to leverage the tax credit for down payments, closing costs, and more, potentially buying a home with no money out of pocket.
Stay informed on the bill's progress and how its passage could impact you.
Remember, while the bill is promising, it still needs to be passed. Other programs are available for first-time buyers, and we cover those too. Remember to subscribe and hit the bell icon to stay updated on the latest in first-time home buying and get ahead of the competition.
[Disclaimer: Information presented in this video is subject to change as the legislative process progresses. Always consult with a financial advisor or mortgage professional for the most current advice and information.]
TIMESTAMPS
0:00 Introduction to The $15,000 First-Time Homebuyer Tax Credit Act
1:17 How The First-Time Homebuyer Tax Credit Act Works
2:48 First-Time Homebuyer Tax Credit Act Qualifications
7:18 The Future of The First-Time Homebuyer Tax Credit Act
ABOUT OUR CHANNEL
Homebuyer.com is the mortgage company for first-time home buyers, and this is our KZbin. This channel provides straightforward advice for first-time home buyers about mortgages, real estate, first-time home buyer programs, and more. We cover important topics, including how to get approved for a low-down payment mortgage, how to get a better mortgage rate, and the grants and programs for first-time buyers today.
WHERE TO FIND US
Website: homebuyer.com
LinkedIn: / homebuyer
Office HQ: 230 Findlay Street, Second Floor, Cincinnati, OH 45214
LICENSING AND DISCLOSURES
Homebuyer.com is powered by Novus Home Mortgage, a division of Ixonia Bank, NMLS 423065. www.nmlsconsumeraccess.org The content in this advertisement is for informational purposes only. Homebuyer.com is located at 230 Findlay Street, Cincinnati, Ohio 45214. Call Homebuyer.com at 513-824-8171. Novus Home Mortgage, a division of Ixonia Bank, is located at 20225 Water Tower Blvd, Suite 400, Brookfield, WI 53045. Reach Novus Home Mortgage by phone at 844-337-2548. We have no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture, or any other government agency. US Government agencies have not reviewed this information, and this site is not connected with any government agency. Equal Housing Lender. Mortgage applicants are subject to credit and underwriting approval. Not all applicants will be approved for financing. The receipt of an application does not represent approval for financing or an interest rate guarantee. Restrictions may apply, contact Homebuyer.com for current rates and more information. All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Homebuyer.com does not guarantee the quality, accuracy, completeness, or timeliness of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Third parties may have provided some information in the publication, which Homebuyer.com has not necessarily verified. Homebuyer, its affiliates, and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
LEARN MORE ABOUT HOMEBUYER.COM
About Us: homebuyer.com
Mortgage Statistics: homebuyer.com/research/mortga...
Today's Mortgage Rates: homebuyer.com/mortgage-rates
Happy Homebuying

[@HomebuyerMortgage]

Read More: homebuyer.com/learn/15000-first-time-home-buyer-tax-credit

[@kylerooney89]

I looked over the numbers and this is going to just make the already tight SFH under 200k even more hard to come by where the house isn't in horrible shape. Then if you give a big discount to people that can barely make the mortgage payment. This is a guarantee of something going wrong when the HVAC breaks or roof needs fixing or medical or job loss or them wanting to have kids.

[@HomebuyerMortgage]

Hi, @@kylerooney89. You are making an assumption that first-time home buyers can't make their mortgage payments. Explain more about that, please. -Dan at Homebuyer.com

[@kylerooney89]

@@HomebuyerMortgage the typical home buyer to comfortablely manage a house or rent is going to be about 1 weeks of their full-time job. With an income of $1440 per week to get the full amount of the subsidy without much effort. Getting this income as $94,500 after taxes with no savings, no 401k, or no health insurance taken into account from their paychecks. If they could only put down 3.5% this could work on a 150k house. Just good luck finding anything like this without having to live in a meth house in the sticks at these interest rates. If you put down 20% you can't do an FHA and have to do a conventional loan to get the target mortgage with a house with 180k. This is without thinking about the other bills. People just don't have the income to manage it for the long run if you spend 35% or over of their income maintaining a house.

[@ramirol158]

This sucks for people who bought a home a couple years ago and were looking foward to the first bill passing since that one was retroactive

[@HomebuyerMortgage]

Hi, @ramirol158. I hear you, and would have liked to see that, too. On the bright side, homes have accumulated a lot of extra equity since a few years ago. -Dan at Homebuyer

[@ericastier1646]

@@HomebuyerMortgage No it is infuriating, it should be retro active to the covid years at least 2021. I was forced to buy a home while i was sick with covid when my landlord decided to suddenly put the property on sale. Worst possible time to buy a home and new leases terms were worst. I ended up buying the home i was renting. I read about the $15k first time homebuyer and relied on it being retro active as it claimed to be. Now with this updated version i get screwed by politicians getting nothing when they give money to freeloaders who are buying their second home. This makes me angry against the government because of all the inclusive exceptions that should not get it and people who should do not get it.

[@ericastier1646]

@@HomebuyerMortgage Also your comment about home appreciation is ignoring people who were forced to buy a home after the price explosions and are not in the retro active window. This law should be retroactive back to the start of the pandemic who screwed many people in a must buy a home situation.

[@HomebuyerMortgage]

@@tanessat87 You're spending an awful lot of energy in these comments. What's your motivation? -Dan at Homebuyer.com

[@HomebuyerMortgage]

@@ericastier1646 I've long said that 2020-2021 was one of the best times in history to buy a home. There was a terrific combination of lower home prices and mortgage rates. Separately, your use of the word "freeloader" is curious. We all benefit from government benefits in some form. Why do you object to a benefit for first-time home buyers, specifically? -Dan at Homebuyer.com

[@thomasaquinas399]

That's laughable that the govt only gives it to you if you make less than the median income. The median household income can't even come close to dreaming about buying anything near median home prices let alone lower home prices. Also love that it only looks back 3 years. Just a dumb band-aid on a long-con government-manufactured problem of supply and demand that screws over anyone who doesn't already own a home. You can miss me with this one.

[@HomebuyerMortgage]

Hi, @thomasaquinas399. Good news! The video says you can earn 150% of the median income for your area. Plus, with the phase-out for the next $20,000 of income, the limits go even higher. So long as you're not in the top 8-12% income-earners for your area, you would be eligible. -Dan at Homebuyer.com

[@RodrigoBeltran-eo1pi]

It's not a pass or fail, you can still get help if your are above median. After 150% of the median the credit gradually reduces. After exceeding 150% of the Median, you subtract $750 from the credit per every $1,000 earned. Meaning if you earn $5,000 above the 150% mark, you would subtract $3750 from the credit. I hope this makes sense.

[@CosmicGlowUP]

does this work with an inherited ira?

[@Dgkeys5]

Is there still anything included for sellers in this bill of their first home?

[@HomebuyerMortgage]

HI, @Dgkeys5. In the 2024 State of the Union Address, a home seller tax credit was floated as part of a larger plan to increase the available home supply for first-time, owner-occupied home buyers. You can read about it and watch a video at homebuyer.com/learn/first-time-home-buyer-mortgage-relief-credit. Thank you. -Dan at Homebuyer.com

[@Wweber1]

I bought my home as a first time homebuyer in 2022 October. I don’t know how to file or get the cash back under the Act. Will this new Act be retro to 2022?

[@HomebuyerMortgage]

Hi, @Wweber1. The bill is not retroactive, as it's written. The credit applies to homes purchased after the bill becomes law. -Dan at Homebuyer.com

[@dizzzzy001]

Say you buy a house this month then the bill passes a few months later, would I still be able to claim that tax credit ?

[@HomebuyerMortgage]

Hi, @dizzzzy001. The tax credit is available to everyone buying a home on or after the date of passage. -Dan at Homebuyer.com

[@xxsekoxx]

Fingers crossed! Just signed on a new build today. This would be perfect. Hope it passes before closing!

[@thelocal713]

This would be terrible, it will only cause way more inflation.

[@HomebuyerMortgage]

Hi, @xxsekoxx. I hope it works out. -Dan at Homebuyer.com

[@HomebuyerMortgage]

Hi, @thelocal713. Why do you believe that? How much is "way more" inflation?

[@marycarr4364]

A similar bill was enacted in 2009 during the Great Recession, and no, it did not cause inflation nor raise home prices. ​@@thelocal713

[@SharonHughes-mn8ky]

Is there any federal tax credit first time buyers that is current already passed in effect at this time? April 2024 thank you

[@HomebuyerMortgage]

Hi, @SharonHughes-mn8ky. As of April 2024, there is no federal tax credit program for first-time home buyers. -Dan at Homebuyer.com

[@sergestrada2]

Does this still give the 15k for me a first time homeowner that bought February 2023?

[@HomebuyerMortgage]

Hi, @sergestrada2. The First-Time Home Buyer Tax Credit Act will be effective for homes purchased after the bill becomes law. -Dan at Homebuyer.com

[@margaretjohnson4139]

I purchased my first home in July, 2023; Will I be eligible for the credit if I file an amended tax return?

[@ericastier1646]

Same situation for me i was forced to buy a home in the worst time during the Covid pandemic.

[@HomebuyerMortgage]

Hi, @margaretjohnson4139. The bill applies to homes purchased after its passage into law. A July 2023 purchase would not qualify as the bill is currently written. -Dan at Homebuyer.com

[@ronkocurek7348]

Can I use this tax credit to cover moving expenses

[@HomebuyerMortgage]

Hi, @ronkocurek7348. Yes, you can use the tax credit for anything you want. It's your money. -Dan at Homebuyer.com

[@MelieSue]

Why are they giving this to people who have already bought homes before!? Those people are NOT first time buyers! That is so ridiculous and makes zero sense. This should only be for true first time homebuyers. And frankly it should be more than $15K. More like $25K, given these outrageous asking prices.

[@bradbowers352]

Sounds pretty entitled

[@jacobhamel2799]

My fiancé and I bought our first home in 2022 and were already looking into moving into something bigger this year. If this passes, will we be able to take advantage as we’ve owned our home less than 3 years?

[@HomebuyerMortgage]

Hi, @jacobhamel2799. You do not qualify as a first-time home buyer because you owned the home in which you lived during any point of the last 3 years. -Dan at Homebuyer.com

[@PickUpTheToy]

Would the $15000 credit change depending on the price of the house? Can the amount you’re eligible for decrease if buying a lower priced home?

[@marycarr4364]

I don't think so - the limit is on the most it can cost.

[@HomebuyerMortgage]

Hi, @PickUpTheToy. The tax credit is 10% of the purchase price of your home, up to $15,000. The buyer of an $80,000 home gets an $8,000 tax credit. The buyer of a $200,000 home gets a $15,000 credit. -Dan at Homebuyer.com

[@PickUpTheToy]

@@HomebuyerMortgage thank you for the clarification!

[@bw0081]

So this year we did a cash guarantee which is being paid by our lender. We put 20% down and are paying the other 80% to our lender directly. Would we still qualify?

[@HomebuyerMortgage]

Hi, @bw0081. What is a "cash guarantee"? I haven't heard that term in the context of mortgages. -Dan at Homebuyer.com

[@bw0081]

@@HomebuyerMortgage Essentially, the seller is getting all of the money that we bid upfront regardless of appraisal (we would have to cover the difference by adding to our down payment if the appraisal comes up short of our winning bid). Our lender only wanted 20% down from us and we are paying the 80% left over to our lender who paid the seller all the money upfront.

[@HomebuyerMortgage]

HI, @@bw0081. You just described a regular mortgage with you waiving the home appraisal contingency in your purchase contract. Is that correct? -Dan at Homebuyer.com

[@CarlosMartinez-fr4it]

Darn I’m closing in a few weeks purchase price 252 in EL Paso Texas new build. We wouldn’t qualify huh?

[@HomebuyerMortgage]

Hi, @CarlosMartinez-fr4it. If Congress acts quickly enough, then you might! -Dan at Homebuyer.com

[@kpenn8516]

when might a decision on this bill be made?

[@HomebuyerMortgage]

Hi, @kpenn8516. Maybe today, maybe never. Likely, sometime in between. -Dan at Homebuyer.com

[@claudettealexander5204]

But Dan my lender told me I would pay more interest if I take grants. Talk to me on this

[@jocelynrose3071]

So did mine. And I can't help wondering if I should ignore that advice or trust it. To me, if I can get my actual monthly payment down (and allow me to buy a home that doesn't require an insane amount on repairs), that's the ultimate prize.

[@HomebuyerMortgage]

Hi, @claudettealexander5204 @jocelynrose3071. I am unsure why a home buyer would pay more interest for using a grant unless the specific grant required a specific mortgage product, and that specific mortgage product came with a higher interest rate. Can you tell me more? -Dan at Homebuyer.com

[@koolade2sweet]

Ive been moving and working along with inflation i should be able to purchase a home but even after all the progression ive had the market is making it so so difficult. This would be a great incentive

[@HomebuyerMortgage]

Hi, @koolade2sweet. That sounds like a healthy attitude. Like the other first-time home buyer bills with Congress, the First-Time Homebuyer Act would reduce some of the pressure on today's active buyers. Thanks for the comment. -Dan at Homebuyer.com

[@conradnight]

I bought my home in 2021 so can i still get this ?

[@HomebuyerMortgage]

Hi, @conradnight. No, the bill would be effective for new homes purchased after its passage date. Homes purchased in 2021 are not eligible. -Dan at Homebuyer.com

[@kylerooney89]

So this will make houses cost 15k more. We know how money printing affects the rest of the economy.

[@marycarr4364]

There is no reason this would make home prices go up. The 2009 Act did not raise house prices.

[@kylerooney89]

@@marycarr4364 this is basic math and was seen with electrical vehicle subsidies. It will make housing cost more in places where most people are already fighting over housing.

[@tslonaker4609]

​@@marycarr4364 basic supply & demand. Artificially rising demand by giving people ability to buy a home that otherwise wouldn't be able to in a market that already has a low supply.

[@HomebuyerMortgage]

Hi, @tslonaker4609. Rising mortgage rates have taken more homes off the market than government stimulus, according to an FHFA study. We talked to an economist who worked on the report - super interesting stuff. Check kzbin.info/www/bejne/pmTFqKBqn6x6bLc. -Dan at Homebuyer.com

[@eddieloujones2673]

Agree. The his is so stupid !!

[@sheffrespawnz7235]

If my first home is a duplex would I still qualify for this?

[@HomebuyerMortgage]

Hi, @sheffrespawnz7235. Duplexes qualify, as the bill is written! -Dan at Homebuyer.com

[@kyleawilliams2935]

@@HomebuyerMortgage Four plex?

[@HomebuyerMortgage]

Hi, @@kyleawilliams2935. If you will occupy one of the four units, yes. -Dan at Homebuyer.com

[@JW-tk1sr]

The child tax credit revisions are still weeks to months away from having a chance to pass the senate. I see it highly unlikely if this bill going anywhere in 2024.

[@HomebuyerMortgage]

Hi, @JW-tk1sr. It feels like we're all reading tea leaves sometimes, doesn't it? -Dan at Homebuyer.com

[@Dgkeys5]

Purchasing a 250k to 300K home is now considered lower to middle income. Congratulations😂

[@HomebuyerMortgage]

Hi, @Dgkeys5. Your comment willfully ignores economics and facts. (1) The price of a home is different from household income; (2) The ability to afford a home is linked to mortgage rates more than household income; (3) The meaning of a "$250,000 home" varies by geography. Please don't add comments like those to a serious conversion. -Dan at Homebuyer.com

[@edwardpritchett8647]

Scandalous as usual with the government

[@chrisc-rc2og]

They'll take it back they always do

[@HomebuyerMortgage]

Hi, @chrisc-rc2og. There's nothing to take back. The bill is in committee. It's up to Congress to pass it now. -Dan at Homebuyer.com

[@ericastier1646]

@@HomebuyerMortgage I hope it will never pass if it is not retro active. If it passes i will see it as an act of contempt against people who need it because it is not retro active.

[@DeerfieldDiscGolf]

The Loopholes make me sick. Rich people will abuse this system and it will eventually go away

[@HomebuyerMortgage]

Hi, @DeerfieldDiscGolf. You are talking about "loopholes" and "rich people" without any relation to this video and its content. Don't do that here. That's not what this channel is for. -Dan at Homebuyer.com

[@JodyAikens]

It has not even been passed yet.

[@HomebuyerMortgage]

Hi, @JodyAikens. The bill is not yet passed, which is mentioned a few times in the video. When the bill passes, we'll update the channel. -Dan at Homebuyer.com

[@vicwiseman6038]

This is terrible!

[@HomebuyerMortgage]

Hi, @vicwiseman6038. For whom is it terrible? -Dan at Homebuyer.com

[@vicwiseman6038]

@@HomebuyerMortgage For everyone! Encouraging people who have no businesses buying a home to buy a home is precisely what happened in the last housing crisis. If you can’t come up with a down payment you shouldn’t be buying. The only people to benefit from this is realtors, brokers, and current owners although eventually they too will suffer when the market comes crashing down! Home prices need to go down and making it easier to buy a home at current price levels is simply criminal. Every time the government meddles in markets they f*ck things up and don’t allow natural supply/demand forces to play out which results in a crash.

[@HomebuyerMortgage]

Hi, @vicwiseman6038. Your premise appears to be based on "the market comes crashing down." People don't lose their homes when their equity drops, so let's stop that conversation. As for your other point, it's intellectually dishonest to call out government intervention in housing for low- and middle-income Americans without also calling it out in areas such as farming, medicine, and manufacturing. -Dan at Homebuyer.com

[@ericastier1646]

@@HomebuyerMortgage No he is right i support his words, you have no legitimacy in judging this as mortgage banks are parasites robbing money without work with usury, you another are realtors usury outrageous commission % fees, brokers and people speculating on properties. A good government should abolish your deleterious and parasitism activity on society and regulate a fixed (no %) realtor fee and force you to get a job that contributes to society, not steal from it. Then housing prices would not get artificially inflated by your parasitic activity that goes in hand with the thugs running the privately owned FED.

[@vicwiseman6038]

@@HomebuyerMortgage Please don’t put words in my mouth, I never said, “people lose homes when their equity drops.” They do lose homes when they purchase a home that they cannot afford; that’s what I said (go back and read). Also, let’s stay on topic, and that’s housing. Yes, it’s true that the same thing applies to education, healthcare, infrastructure and defense. Although I also don’t approve of gov meddling in many of those industries, some of them do require an entity like the gov to build for the benefit of the public at large (I can’t afford my own missile defense network). Things like roads, bridges, and national defense require organized funding and effort. When it comes to housing market, we don’t need government meddling as it distorts the market. This program is bad for the market and I am someone who qualifies! On a different note, if you look at median incomes vs median home price over the past 25 years, it’s clear prices are too high and will have to come down. This isn’t true for every area of the country but it is true in most areas. This doesn’t mean people should wait to buy, it just means, don’t be surprised if prices fall over the next 5-10 years. This is especially true as more supply comes online and the population ages.