Is it a good time to buy?

Is it a good time to buy?

I frequently get asked that question. I was asked the same question in 2006, 2007, 2008 as well. My answer has always remained the same…it depends. The question is more than a timing issue for most people. The fundamental question you need to answer first is “why do you want to buy now?” If you have a change in family size, change of employment, change in income, or if you are seeking a new neighborhood; then perhaps there has never been a better time to buy a new home. If you are merely “speculating” that today’s low prices mean a future equity bonanza then I would suggest investing in the stock market and staying where you are while you do some more research.

Homes are different than housing. Your home is more than an investment or wealth vehicle. It should be a stable environment from which you and your family can find refuge from the stresses of the outside world. A home is a sanctuary where you can live your life in pursuit of the “American Dream”…the home is not the “American Dream”. The freedom and pride of living in your own home is the dream. The home does not come furnished with good or bad “karma”…you bring yours with you when you move in.

I thought it might be helpful to look at this moment as an ideal time to do some research. If you are armed with the facts you can better determine whether it is a good time for YOU to buy. I have assembled some recent links from various sources. These links can help you sort out your goals, answer some questions and allay some of your fears.

At Lakewood Homes we want to help you buy your new home. We can help you gather the information you need…

>How to sell your current home in a challenging market
>How the new changes in mortgage lending will affect you
>How to improve your credit to take advantage of today’s phenomenal rates and prices
>What benefits are available to first time and re-entering home buyers
>How much home you can afford
>And more…

We can help you answer those questions. We look forward to assisting you as you answer the big question…

“Is it a good time to for you to buy?”

Check out these sites for some great info...

NY Times article on the new rules for homebuying (they look a lot like the old rules).

Homebuyer FAQ'S

How much home can you afford?

Monthly costs plus mortgage calculator

Monthly payment mortgage calculator

CNBC Spring Home buyer’s guide

CNBC's RealtyCheck Blog

Here is a snipet from CNBC this morning talking about the improving housing data...

Deal or No Deal?

Here is an interesting take on todays economy from Jay MacDonald at Yahoo finance. I thought you might benefit from this perspective.

Jay MacDonald asks: "Wait for Bargains on These Five Items?"

To read the article as posted, please visit Yahoo finance.

What's it going to be, America: deal or no deal?

With the economy in free-fall, consumers have been holding their breath -- and their cash -- as they delay major purchases while waiting for the economic turbulence to pass.

When buyers won't buy, sellers can't sell. When this happens, credit dries up, businesses shut down and joblessness grows, stalling the engine that drives our economy.

"We are going to see, over the next six months, a fundamental shift in the American retail landscape," says Paco Underhill, retail anthropologist and author of "Why We Buy: The Science of Shopping."

"Almost every major chain would be so much healthier if they shed underperforming properties. We are over-stored."

While the downturn is devastating for retailers, it offers several silver linings for shoppers -- fire sale prices, desperate retailers and historically low interest rates -- that have them wondering if they should hold off on purchases.

Should you buy today or wait for greater savings tomorrow? Or in the parlance of a popular TV game show, is it going to be "deal or no deal?"

Fast Changes

The question is not whether you'll get a better deal by waiting six months; it's also whether the retailer will still be around by then.

"We're in the worst consumer spending slump in decades, and there's a lot of debt by retailers," says Tom Kelly, director of the Center for Business and Economic Research at Baylor University in Waco, Texas.

"I think we'll see a lot of bankruptcy filings, and even difficulty getting enough capital to even reorganize under bankruptcy. If the economy continues to slow down and unemployment keeps going up, this will obviously injure consumer spending."

Right now, a buyer's market rages in almost every retail sector. Buyers gain clout when supply exceeds demand. How long this will last is anyone's guess.
Once your neighbors decide to spend instead of save, demand will rise, taking away some of your leverage.

But before you rush out and buy, remember that prices could just as easily drop next week. New features could be added, "bundled," to sweeten the deal. More attractive financing terms could appear at any time.

We surveyed some experts in a few big-ticket sectors for their advice on whether to buy now or hold out for even greater savings.

1. Airfares: Deal or No Deal?

No deal. Tom Parsons, publisher of the Bestfares.com travel site, hasn't seen this much airfare turbulence since post-9/11.

The one-two punch of skyrocketing fuel prices last summer followed by the crash of the economy last fall left the airline industry in a tailspin, much to the financial good fortune of air travelers.

Airlines initially cut routes in anticipation that higher fuel charges would put ticket prices beyond the reach of the lunch-toters. But once the economy tanked, all air travel, including business class, dropped off sharply.

"The airline industry right now is bargain basement," Parsons says. "I don't see the fares going up. If anything, you have a fair shot for the fare to come down."
Gazing ahead to the prime summer travel months, Parsons sees nothing but miles and miles of bargains, especially to or from hubs served by low-cost domestic carriers such as Southwest, JetBlue, AirTran, Virgin America, Frontier or Spirit. These will likely set the price points that legacy carriers like United and Delta/Northwest will be forced to match.

"If you're trying to buy for peak summer, July and August, and you're flying a route served by Southwest, I would suggest not buying yet," he says.

That said, Southwest is one of the few airlines that will refund 100 percent of your ticket price if the price drops -- good insurance in turbulent times.

The sky is the limit for bargains on international routes as well, says Parsons. Bestfares.com recently finished selling roundtrip flights from Dallas or Houston to London on British Airways for $449. The same flight on American Airlines costs $1,081.
If you're willing to consider other European gateways or seek out special introductory fares, the savings can be even greater.

"If you're going to Europe, I would just sit back and watch the prices. Especially summer; summer is just priced very high right now and I think the airlines are going to have to blink," says Parsons.

2. Vehicles: Deal or No Deal?

Deal. When the Big Three automakers have been reduced to punch lines for Letterman and Leno, there's little doubt that their products have become seriously shopworn. There's nothing like asking for a huge bailout to stop the flow of buyers onto your lot.

A team of auto analysts recently reported the average price of a new vehicle fell 2.3 percent in the second quarter of 2008, the largest single drop in the 41-year history of the survey. Analysts expect rock-bottom pricing to continue at least through the first half of this year.

"Automobile dealers are screaming," Kelly says. "They have inventories they can't get rid of and are scrambling with all sorts of efforts to sell them. I don't see that recovering anytime soon, at least through the first half of the year."
Need a new vehicle? You'll be able to drive a hard bargain, now or later.

3. Home Purchase: Deal or No Deal?

Deal. If you are contemplating buying a home, now may be the perfect time to make a purchase -- if you have the money and a secure job.
Real estate sales have sagged in many parts of the country as buyers have been frozen in the headlights of the economic downturn. As a result, prices are falling in many markets.

"If I could buy real estate right now, I would," says Amy Bonis, a certified mortgage planner with Alera Financial in Raleigh, N.C. "It's clearly a buyer's market. If you can buy a house that is undervalued, it's like, what shade of green do you want?"

In addition, mortgage rates have fallen near historic lows, substantially reducing the cost of financing for buyers with good credit.

Bonis says buyers who act now rather than wait are likely to see the best return.
"Somebody has to start buying, and when they do, there are going to be more buyers on the market, which is going to cause home prices to go up," she says. "When you stimulate home prices to go up, that affects the economy in a positive way, which raises interest rates. What people don't realize is, by the time they hear that things are better, (their opportunity) is already gone."

4. Mortgage Refinance: Deal or No Deal?

No deal (sort of). It may be a great time to buy a home, but it's no time to rush into a refinance on the hope of quickly capturing a great rate, Bonis says. Instead, it pays to take your time and do things right.
Bonis tells her refinance clients "absolutely do not lock" on a rate until they have their paperwork ready and approved.

Why? Bonis says the window to lock in an attractive mortgage rate has shrunk from four-plus hours to two in the past 12 months, due to the volatility in the bond market that feeds those rates.

"It's incredibly stressful because, when you go to lock a loan, the lock desks become frozen because there is so much volume; they actually stop accepting locks," she says. "I had a customer who wanted 4.5 percent. Well, I could have gotten him 4.6, but he said, 'No, Amy, I'm going to hold out.'
"Well, excellent -- now it's four and seven-eighths."

The best way to refinance today is to hurry up and get your paperwork prepared and approved, then wait.

"We get everything approved and then we wait for that two-hour window, and when that happens, we're going to lock in those people who have already gotten us all the papers," she says. "We don't charge them a dime until we get them the loan rate that makes sense to refinance on."

5. 'Netbook' Computers: Deal or No Deal?

No deal. In the world of mobile computing, there's a new kid in town: the "netbook," a pocketbook powerhouse with a miniature keypad and a 10-inch screen that's perfect for surfing the Web and catching up with e-mails on the fly.
Mika Kitagawa, principal analyst with Gartner, a technology research company, says netbooks have been eating into notebook sales since they hit store shelves last year.
"Yes, there is cannibalization," she says. "Netbooks are actually opening up a market for new customers who would like to have a smaller system to carry around."
Netbooks were a bright spot in an otherwise dismal holiday shopping season for computer makers.

Kitagawa says the netbook, which retails as low as $299, doubtless contributed to a significant decline in notebook prices during the third and fourth quarters of 2008, bringing low-end, 15-inch models down to between $399 and $599.

"Those low-priced systems put a lot of pressure on the price of regular notebooks, which have to somehow compete with the netbooks," she says.

Should you grab one now, on sale at $259 at several big-box stores?
Kitagawa says no.

"These could go down in price a little further, to the $199 range, depending on the functionality and operating system," she says.

By waiting a few months, you'll likely not only save a few bucks, but also may get a more robust machine.

"It really depends on how much vendors want to do to sell more of this product," she says.

Copyrighted, Bankrate.com. All rights reserved.

Great Time to Own Your First New Home

In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.

You might ask "Who qualifies?" Here is your answer.

What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

But time is of the essence for buyers who want to take advantage of this opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible.

Other facts you need to know:

The tax credit is for first-time home buyers only.

The tax credit does not have to be repaid.

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.

Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Visit the Federal Housing Tax Credit website for comprehensive information on this new bill!

Lakewood Homes earns 2008 AVID Award for Overall Customer Experience

Lakewood Homes has won the 2008 Avid Award that honors homebuilders nationwide who have demonstrated superior customer service and who have also received high referral ratings. The award is based on surveys of new home buyers across the nation and is presented by Professional Builder magazine.

The Avid Awards recognize select homebuilders that deliver the best customer service experience as measured through surveys of actual homebuyers. Only a few homebuilders qualify for this prestigious award. Lakewood won the Avid Award for homebuilders nationwide that delivered 500 or more new homes in 2007. Lakewood is currently building townhomes, single-family homes and attached single-family homes in five different communities throughout the Chicagoland area, with prices starting in the low $100s.

Lakewood Homes has won the 2008 Avid Award that honors homebuilders nationwide who have demonstrated superior customer service and who have also received high referral ratings. The award is based on surveys of new home buyers across the nation and is presented by Professional Builder magazine. The Avid Awards recognize select homebuilders that deliver the best customer service experience as measured through surveys of actual homebuyers. Only a few homebuilders qualify for this prestigious award. Lakewood won the Avid Award for homebuilders nationwide that delivered 500 or more new homes in 2007. Lakewood is currently building townhomes, single-family homes and attached single-family homes in five different communities throughout the Chicagoland area, with prices starting in the low $100s.
CLICK HERE TO READ MORE ABOUT THE AVID AWARD

Great Loan Programs for Lakewood Prairie Buyers

Anyone who pays attention to the news has heard that financing can be "hard" to find right now. Now, while that may be true for some...the vast majority of Lakewood Prairie buyers have found some really great financing programs this fall.

If you are a first time buyer(s) with average credit and individual (or combined) income ranging from $40,000 to $90,000...we have three unbelievably good financing and tax savings programs available for you!

#1) The American Dream Program. This program is ideal for first time buyers. It features:

A competitive fixed interest rate
NO reserves required at closing
NO Private Mortgage Insurance (PMI)
Lakewood supplies 3% down and up to 2% towards closing costs
Income restrictions apply

#2) The USDA Guaranteed Rural Housing Program. This program is not restricted to first time buyers. This program features:

30 year fixed rate financing
102% Financing available with financed 2% guarantee fee
No Private Mortgage Insurance (PMI)
Allows 3% Lakewood contribution toward down payment or closing costs.
Income restrictions also apply

#3) The IHDA "I-Loan" Certificate (MCC) Program. This program is available exclusively in our Joliet community.

The I-Loan Certificate (Mortgage Credit Certificate, a.k.a. MCC) allows first-time buyers to receive a dollar for dollar reduction in federal income taxes of 25% of the mortgage interest paid. This reduction is in addition to the standard income tax deduction available when purchasing a home. Keep in mind that the I-Loan certificate is not a loan. It is a tax-credit for first time buyers.

If you would like more information on any of these programs please email Richard Bridges at richard@lakewoodhomes.net or call us at (815) 439-5777. These programs are available for a limited time. They will not be available too much longer so be sure to find out if you qualify!

Housing Stimulus Package=Best Time to Buy!

Here is a very helpful and informative article from the National Association of Home Builders. This article helps to explain the very important housing bill that was just signed a week ago. This long-awaited bill will help stimulate the housing market by offering tangible benefits for quick action. This should help first time buyers AND folks who are looking to sell their current home in order to purchase their next "dream home".

Builders Can Use New Tax Credit to Help Spur Home Sales

Prospective first-time home buyers who have been sitting on the fence now have a significant financial incentive to explore the opportunities available in today’s housing market.

H.R. 3221, the Housing and Economic Recovery Act of 2008 — which has just been passed by the Congress and now is on its way to President Bush for his signature — allows first-time home buyers to take a $7,500 tax credit from the purchase of a single-family home, townhome or condominium apartment.

To get the word out to the home-buying public, NAHB has assembled materials that will help association members maximize the impact of this temporary sales incentive.

Among those resources:

• Once the new legislation has been signed, NAHB will activate a Web site for consumers — www.federalhousing taxcredit.com. The site includes details and questions and answers on how home buyers can use the credit.

• On www.nahb.org/mythbuster, NAHB is posting print ads, a consumer handout on the “top reasons you shouldn’t wait to buy a new home,” and a banner ad for Web sites — all geared to alerting home buyers to the availability of the credit.

Any home buyer who has not owned a home during the past three years and is a U.S. citizen who files taxes is eligible to participate in this program. (Some home buyers who are not citizens may also qualify; see #14 in the questions and answers below.)

To qualify, buyers must actually close on the sale of the home on or after April 9, 2008 and before July 1, 2009. The original eligibility period expired in April 2009, but following a major grassroots campaign from NAHB members, the period was extended to enable home builders to include the credit in their sales and marketing next spring and into the early summer — the peak home buying season.

The program does have income limits. Single or head-of-household filers can claim the full $7,500 credit if their adjusted gross income (AGI) is less than $75,000. For married couples filing a joint return, the income limit doubles to $150,000.
Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit. The same applies to married couples who earn between $150,000 and $170,000.

The credit is not available for single taxpayers whose AGI is greater than $95,000 and married couples with an AGI exceeding $170,000.

A refundable credit means that if a taxpayer pays less than $7,500 in federal income taxes, the government will write them a check for the difference. For example, if $5,000 in federal taxes is owed, the taxpayer would pay nothing and a $2,500 payment would be received from the IRS. If a qualifying home buyer were owed a $1,000 tax refund, they would receive $8,750.

Buyers can take the tax credit on their 2008 or 2009 tax return. Those who close in 2008 take the credit on their 2008 return. Buyers in 2009 have the option of taking the credit on their 2008 or 2009 returns.

The tax-credit program also has payback provisions.

The credit essentially serves as an interest-free loan to be repaid over 15 years. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. If the home owner sold the home, then the remaining credit would be due from the profit of the home sale.

If there is insufficient profit, then the remaining credit payback would be forgiven.
For more information on NAHB tax credit resources, e-mail NAHB Public Affairs or call 800-368-5242 x8061.

Questions and Answers for Consumers
Following are the “Frequently Asked Questions About the First-Time Home Buyer Tax Credit” that will appear on NAHB’s consumer Web site (www.federalhousingtaxcredit.com). The site will become active as soon as the housing legislation is signed into law.

1. Who is eligible to claim the $7,500 tax credit?

First time-home buyers purchasing any kind of home — new or resale — are eligible for the tax credit.

2. What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

3. What types of homes will qualify for the tax credit?

Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses, and condominiums.

4. Are there income limits to determine who is eligible to take the tax credit?

Yes. Home buyers who file their taxes as single or head-of-household taxpayers can claim the credit if their modified adjusted gross income (MAGI)is less than $75,000.

For married taxpayers filing a joint tax return, the MAGI limit is $150,000. The limit is based on the buyer’s modified adjusted gross income for the year that the house is purchased, except for certain purchases in 2009.

5. What is “modified adjusted gross income”?

Modified adjusted gross income, or MAGI, is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income,” or AGI, which is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income — including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?

Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.

7. Can you give me an example of how the partial tax credit is determined?

Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is
$150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.

Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

8. Does the credit amount differ based on tax filing status?

No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files its taxes as “married filing separately” (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

9. Are there any circumstances under which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?

In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

10. I heard that the tax credit is refundable. What does that mean?

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

11. What is the difference between a tax credit and a tax deduction?

A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15% tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer’s tax liability would be reduced by $1,125 (15% of $7,500), or lowered from $7,500 to $6,375.

12. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?

No. The tax credit cannot be combined with the MRB home buyer program.

13. I live in the District of Columbia. Can I claim both the D.C. first-time home buyer credit and this new credit?

No. You can claim only one.

14. I am not a U.S. citizen. Can I claim the tax credit?

Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519 (www.irs.gov/pub/irs-pdf/p519.pdf).

15. Does the credit have to be paid back to the government? If so, what are the payback provisions?

Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

16. Why must the money be repaid?

The intent of Congress was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices and will increase home sales. The repayment requirement reduces the impact on the U.S. Treasury and assumes that home buyers will benefit from stabilized and, eventually, rising future housing prices.

17. Because the money must be repaid, isn’t the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?

Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers more than $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

18. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?

Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on Dec. 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

19. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.