It was just a matter of time. I have seen buyers getting very creative with the $8000 stimulus tax credit. One buyer I am working with was smart enough to request an extension to file her tax waiting for the closing of her home to take advantage of the tax credit immediately. Other buyers are reducing their tax withholdings for the year so that by 2010 they will have gotten their 8K in the way of a bigger paycheck all of 2009. I believe the government will see an unprecedented number of amended 2008 returns coming in this year from buyers eager to benefit from their stimulus check.
Now the financial industry is all a buzz about whether buyers will be permitted to use the stimulus money as a down payment. I am always amazed at how innovative people become when money is involved. They are going to get the money anyways so why not let them use it as a down payment? If we want the stimulus package to work, we need as many qualified buyers as possible buying homes. I would caution those who are extremely tight on cash that having $8,000 to make improvements or to put in savings may be a better way to use the credit. Using the $8K as a down payment is just an idea being considered at this time but for buyers who are on the fringe it may represent the only way to get into a home.
This has been a season of first time buyers and my initial impression is that the stimulus money is working to spur on the real estate market. I am hopefull that the late season will bring more mid range buyers as they finally have found buyers for their starter home.
