Unfair Stipulation in the First-Time Home Buyer Tax Credit

183 Letters and Emails Sent So Far

Unfair Stipulation in the First-Time Home Buyer Tax Credit

The stipulation that disqualifies first-time home buyers from receiving the tax credit because of the previous owner being a relative is unfair and should be removed or modified.
I am a 23 year-old single mother and I just purchased my first home. The house that I purchased is 15 years old and needs work. When I learned about the $8,000 tax credit given to first-time home buyers, I was relieved of worrying about where to get the money to fix my home in these tough economic times.
Then I learned that Congress has included a stipulation that disqualifies me from receiving the $8,000 tax credit because I purchased my home from a relative.
I am a law-abiding and tax paying citizen and I have worked very hard to purchase my first home. I went through the full process of taking out a loan and signing a contract and it is not right that I do not qualify for this tax credit because of who owned my house before me.
I know there are many others who also fall into this category. So please assist myself and the many other first-time home buyers in this predicament, in changing this stipulation and getting our earned piece of the American Recovery Act.

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January 30, 2012    link
Someone from Johnson City, TN signed.
January 24, 2012    link
Deborah S. from Rochester, NY writes:
I was unable to get a mortgage in 2003 due to a divorce. My dad purchased a condo and I lived here and paid all the bills/taxes. In 2009 I was able to obtain my own mortgage and purchased it from him. I paid the full appraised price and took a mortgage for the amount, the condo was not gifted or signed over to me, I paid full price, then found out I was unable to claim the tax credit. I do understand the IRS's position in disallowing people to give or merely sign over homes to relatives so they may claim the credit, however there should be provisions for people who actually purchase a home from a relative, go through ther appraisal, and mortgage process just like any other homebuyer. There are thousands of dollars in closing costs it would hardly be worth it for someone to get a home from a relative to "scam" they would just about break even after closing costs. I am also a single mom and the mortgage co told me I could claim the tax credit becuase I payed full fair appraised & fair market price, I was out of luck....
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July 10, 2011    link
John B. from Salt Lake City, UT writes:
i must approve that.. peace out John Bias
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July 5, 2011    link
Someone from Michigan City, IN writes:
Purchased from an estate of grandmother. Paid fair market value. All legal work done by an attorney.
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May 18, 2011    link
Someone from Dayton, OH signed.
April 13, 2011    link
Someone from Liverpool, NY writes:
Please sign this and hopefully they will listen and remove our repayment schedule.
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April 12, 2011    link
Nancy S. from Pittsburgh, PA signed.
April 10, 2011    link
Someone from Lawrenceville, GA writes:
My family situation is not in this category. We were disqualify because the binding contract is written on May 6th although we bought our house in June last year. Even though the deadline is extended to October 1st, it said that a binding contract should be written before May 1st. I just feel it is so unfair.
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March 10, 2011    link
Someone from Brooksville, FL writes:
My son bought his childhood home from us at the full appraised value. His very first home and he doesn't qualify for this credit???? Our government should change this immediately. He could have bought a home for much less and qualified. But because this home, that had been on the market for 4 years, had sentimental value to him he purchased it all the while helping out the economy just like someone who bought the house down the street. He thought that he would have this credit to help do the repairs that were needed. Now nothing? The bank owns this house until he pays them back in 30 years, not his parents. Hey, government, do what is right and make this thing right for your hardworking law abiding citizens. This is an outrage!!!
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February 27, 2011    link
HOLLY F. from Novi, MI writes:
My husband and i bought a home last year had trouble getting a mortgage so my father paid cash and did a land contract to pay him back, My parent never lived in the house, they only own it for a month on a piece of paper.this is discrimination! why does it matter who own your home or who loan you the money. This needs to change now.
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February 27, 2011    link
HOLLY F. from Novi, MI signed.
February 23, 2011    link
George C. from Aiken, SC signed.
February 13, 2011    link
Someone from Michigan City, IN signed.
February 11, 2011    link
Someone from Lincoln Park, MI writes:
THIS IS SO UNFAIR! MY MOTHER PASSED AWAY AND WE WANTED THE HOUSE TO STAY IN THE FAMILY. MY DAUGHTER PURCHASED THE HOUSE FROM THE ESTATE. SHE IS A SINGLE MOM AS WELL. THIS IS NOT FAIR. THIS NEED TO BE CHANGED!!!!!
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February 11, 2011    link
Someone from Des Moines, IA writes:
I purchase my fathers home after he died. I purchased it from the estate attorney for fair market value.
The house needs many repairs and I didn't know I was going to get wronged by our government. by denying me the first time home owner credit.
Yeah bail-out the banks and rich gov cronies, but to deny this credit to 99% of the honest people in America is just plain wrong.
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February 10, 2011    link
LAURA M. from Islandia, NY signed.
February 10, 2011    link
Lucas W. from Butler, PA writes:
I've been disqualified from receiving the first time homebuyers credit because in 2007 I married a long time homeowner. I never had any ownership stake in her house. She would qualify for the move up credit, except for, she married me, and I don’t. The real kicker too, our new home only cost $62,750 so with either the first time or move up credit we should have received $6,275 which is less than the maximum move up credit.

The new house is in my name only even and I’ve still been told that I can’t even qualify for the ½ credit if me filed our taxes separately.
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February 9, 2011    link
ryan v. from Virginia Beach, VA signed.
February 8, 2011    link
Mario G. from Atlanta, GA writes:
Finally, someone who understands....
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February 8, 2011    link
angelica r. from Antioch, CA signed.