Well, the son is looking to buy

[OUHOMER]

a house. First time buyer. With $8000.. tax credit how can you go wrong. Dont know how the tax credit works other than you have to stay in the home for 3 years. He is prequalified for $95,000 so he should be able to find a decent starter home.

He is looking to buy in the Moore area, I am trying to get him to stay closer to Mustang, but he will have none of it.

Say's Moore has more to offer, phh. I told him once he started making payments, and working on the house, he wont be able to afford to go out.

But, I am proud of him for being a position to buy a house. When I was 24, i couldnt afford squat.

[StoopTroup]

Yeah it's hard not to squash a kids dreams. Your doing the right thing. We all have to learn on our own a bit. Just guide him through the saving money part so if he needs to sell later...he can buy the next one in Mustang.

WTG Dad!

[Okla-homey]

a house. First time buyer. With $8000.. tax credit how can you go wrong. Dont know how the tax credit works other than you have to stay in the home for 3 years.


Its really a loan because the takers end up paying the up to $8K back in the form of an additional amount they pay the IRS when they file for a few years thereafter. Still, its a nice little sparkly to try to get folks to buy houses who otherwise might not be so inclined. Congrats on raising a responsible kiddoe.

[MojoRisen]

I just closed on my first house out here in northern VA, my understanding is that you do not even have to wait for the 8K and that if you file with H&R Block or your Tax person, they can get you a check right away! Helps with Furniture etc...

[jkjsooner]

The 8k thing really ticks me off. For starters, it's a big lie considering in so many cases they portray it as a credit that doesn't have to be repaid.

Also, it is really a way to screw buyers. Not only do they have to pay the 8k back but those benefits will just prop up the price of the house they are buying.

Some people argue that this will just raise the price $8k - or in bubble areas reduce the depreciation by $8k.

I think that is considerably understating the impact on buyers. Considering down payments contribute heavily to how much a person is allowed to borrow, an $8k downpayment could probably prop up the price by several multiples of that.

All that being said, Oklahoma is pretty much not a bubble area and I wouldn't worry too much about buying there.

In VA, forget about it. I ain't looking for a house for at least two more years. For those who disagree with me, tell me what your opinion was two years ago. Too many of those telling me to buy now were saying the same thing two years ago. Again, I'll trust historical price/rent and price/income norms. All you have to do is look at the long term inflation adjusted price curve and you will see that we're still a long way from norm here.


Mojo: I just realized that this sounds like it's addressed to you. That is not the case. I just happen to live in NVA as well.

[MojoRisen]

The bubble is over in Virginia, any house that is a deal is being bought up in a matter of days. With that being said I got my house for 270K under last years tax assesment. Almost half price

There are two programs, one is a Federal Loan and the other is an actual TAX CREDIT both are 7500-8K.

Virginia also has one of the lowest un-employment percentages in the country - I would buy here pretty soon if you live in VA...

First time buyers, I don't think many of our parents or grand parents got 5% interest.. on 30 year fixed mortgages. Step up and help America!

[KC//CRIMSON]

First time buyers, I don't think many of our parents or grand parents got 5% interest.. on 30 year fixed mortgages. Step up and help America!


Word. You can get 4.6% on a 30 year fixed with Wells Fargo today.

[Chuck Bao]

I'm a bleeding heart, socialist lefty and I think everyone should have a chance to own their own home. On the other hand, the intercity projects have been a disaster and suburban commutes have not helped us out much in terms of reliance on foreign imported oil. I don't like the idea of the government trying to prop up housing prices, keeping prices beyond the means of most Americans. Rising unemployment is not going to help. I still like the idea of massive government spending on train service in our biggest cities. If a train service is in the area, the housing prices naturally rise and it is sustainable.

With all that said, I'm going to say congrats OUHOMER on your son buying his first starter home at age 24. The American dream is still alive. I like that.

[ChickSoonerFan]

I have read that the new tax credit that is part of the Recovery Act does not have a pay-back provision. It replaced the one that was already in effect that did have a pay-back provision. That is what the IRS site states.

http://www.irs.gov/newsroom/article/0,,id=204335,00.html

Pretty good deal. Good for your son!

[OUAlumni1990]

Now is the best time for 1st time home buyers. I don't know if there has ever been a better time than now.

[colleyvillesooner]

I have read that the new tax credit that is part of the Recovery Act does not have a pay-back provision. It replaced the one that was already in effect that did have a pay-back provision. That is what the IRS site states.

http://www.irs.gov/newsroom/article/0,,id=204335,00.html

Pretty good deal. Good for your son!


This was my understanding as well. The one last year has to be paid back in your taxes at $500 a year for 10 years.

[jkjsooner]

The bubble is over in Virginia, any house that is a deal is being bought up in a matter of days. With that being said I got my house for 270K under last years tax assesment. Almost half price

There are two programs, one is a Federal Loan and the other is an actual TAX CREDIT both are 7500-8K.

Virginia also has one of the lowest un-employment percentages in the country - I would buy here pretty soon if you live in VA...

First time buyers, I don't think many of our parents or grand parents got 5% interest.. on 30 year fixed mortgages. Step up and help America!

I don't know where you live in VA but in Arlington and DC the prices have not dropped hardly at all. I know areas farther out have had significant declines.

I also will not buy based only on interest rates. With most Americans focused on monthly costs rather than asset prices, higher rates will put downward pressures on prices.

And, we're not entering a new bubble any time soon. These things are never V shaped curves so even if we do bottom out there's little risk in waiting a year or two.

[jkjsooner]

Now is the best time for 1st time home buyers. I don't know if there has ever been a better time than now.

Are you serious? Here in Va, back in the late '90s you could get a house for 1/2 to 1/3 the price you would pay now. I got about a 6.5% interest rate on my house. It cost me $120k and within a few years reached $450k. It's back down to $250k or so but still way too high - even adjusting for inflation. It was in the boonies and was a starter home and let me tell you people in the boonies who were buying starter homes can't afford $250k much less $450k.

It's still a terrible time to buy. Sorry, you guys can repeat your National Association of Realtors B.S. all you want but it isn't going to convince me.

By the way, Alt-A loans are just starting to reset and the highest numbers of resets are coming in the next 2 or 3 years. There is still lots of problems in our future.

[SanJoaquinSooner]

Word. You can get 4.6% on a 30 year fixed with Wells Fargo today.

and it will be even sweeter when
inflation hits double digits! bargain of a lifetime.

[OUAlumni1990]

Are you serious? Here in Va, back in the late '90s you could get a house for 1/2 to 1/3 the price you would pay now. I got about a 6.5% interest rate on my house. It cost me $120k and within a few years reached $450k. It's back down to $250k or so but still way too high - even adjusting for inflation. It was in the boonies and was a starter home and let me tell you people in the boonies who were buying starter homes can't afford $250k much less $450k.

It's still a terrible time to buy. Sorry, you guys can repeat your National Association of Realtors B.S. all you want but it isn't going to convince me.

By the way, Alt-A loans are just starting to reset and the highest numbers of resets are coming in the next 2 or 3 years. There is still lots of problems in our future.

You have to keep in mind this is Moore Ok we are talking about not Virginia. Two COMPLETELY different markets. What applies there doesn't necessarily apply in Moore OK. I still say its an excellent time for a first time homeowner to buy (in OK).

[badger]

He can get a lot of good tips from the HGTV cable channel. They have a lot of series about home buyers and renovations, including first timers.

It gives insight into the negotiation process if a house is a little out of your price range, but it mostly shows the importance of not settling on the first house you find.

A good place to start? Craigslist! It will give your son an idea of what homes are available and where. NP and I dealt with the homeowner directly and had a financer work with all the paperwork and such. We tried realtors, but they steered us toward the undesireables in the area - suburban sprawl areas that people were looking to sell out of, and new development areas that were a long commute... and incredibly empty. Both of these type of neighborhoods were far more expensive than the one we settled on... a more established neighborhood with a shorter commute.

[soonersis]

Moore is a great area for first time buyers. Yeah some parts aren't so great, but my first house was there. Bought it for 62.5K and sold 5 years later for 96.5k. Not bad if you ask me.

And even my current house has appreciated in value over 20% in 2.5 years.

[OUMallen]

Its really a loan because the takers end up paying the up to $8K back in the form of an additional amount they pay the IRS when they file for a few years thereafter. Still, its a nice little sparkly to try to get folks to buy houses who otherwise might not be so inclined. Congrats on raising a responsible kiddoe.

Wrong. 2008's credit is 7500 and payback. 2009's is 8000 and free.

[OUMallen]

Are you serious? Here in Va, back in the late '90s you could get a house for 1/2 to 1/3 the price you would pay now. I got about a 6.5% interest rate on my house. It cost me $120k and within a few years reached $450k. It's back down to $250k or so but still way too high - even adjusting for inflation. It was in the boonies and was a starter home and let me tell you people in the boonies who were buying starter homes can't afford $250k much less $450k.

It's still a terrible time to buy. Sorry, you guys can repeat your National Association of Realtors B.S. all you want but it isn't going to convince me.

By the way, Alt-A loans are just starting to reset and the highest numbers of resets are coming in the next 2 or 3 years. There is still lots of problems in our future.

You have no idea what you're talking about regarding the OKC metro housing market.

[jkjsooner]

You have no idea what you're talking about regarding the OKC metro housing market.

Why do you say that? What did I say about the OKC metro market? The only statement I made about OKC is that I wouldn't worry about buying there as it wasn't a bubble area.

Did my post you quoted say anything about OKC? I was responding to a post that simply stated, "Now is a good time to buy," and there was no disclaimer on where they are talking about. I think that is complete B.S. Sure, in places like OKC you'll be fine (as I stated) but on either coast it's still way too soon.

There has yet to be a month in the last 5 years where the housing industry hasn't said that "now is a great time to buy" and nor has there been a month in the last 2.5 years where they haven't said "we believe housing has bottomed out."

You guys can disagree all you want but I'm still looking at long term trends and things like price/rent and price/income which are still way out there for over half of the country.

As for our grandparents not getting a 5% loan, well our grandparents didn't have to 5-10 times their yearly income to get in the house either.

Fundamentals will return whether you like it or not.

[OUHOMER]

well the boy found a house, A new house that seems to be in his budget.

Its new, but I dont care for the surrounding neighbor hood, it has NO yard I mean NO yard, and houses are on top of each other. it looks like they all share the same drive way. kinda weird.

But they seem to be bending over backwards to get the sale.

I just told him my thought, and to think with his head and not his heart.

like a young kid buying his first new car:O

he just wants it, no matter what, but he has already got them down 10 to $12,000, plus paying all the closing cost, a new refrigerator, guttering in the front, now hes working on a garage opener.

[OUAlumni1990]

congratulations