The following is a guest post from Julius who writes for NewRetirement.com.

The Good News and Bad News on Reverse Mortgage Loan Amounts

Reducing the Maximum Reverse Mortgage Loan Amounts

Effective Oct. 1, 2009, the Federal Housing Administration reduced the maximum loan amounts seniors could receive from a Reverse Mortgage. The reduction means a 10 percent cutback on the loan amount for all new FHA Reverse Mortgage loan applications.

While this won’t impact borrowers with applications taken prior to October first, it is estimated that one in five new Reverse Mortgage applicants will now be unable to qualify for the loan.

The reduction will strengthen the Reverse Mortgage program and help the FHA recover from an estimated $798 million budgetary shortfall for the program in the coming fiscal year. The shortfall resulted at least in part from the FHA mortgage insurance program having to cover the difference between final loan amounts and lower than expected home sales prices used to pay off Reverse Mortgages come due.

Is there good news? If you haven’t yet applied for your Reverse Mortgage, you will indeed now have access to less cash than you would have a month ago. However, loan amounts in 2009 are still generally higher than they were in 2008.

Will there be more changes? The FHA can change the benefit level at any time – up or down. While impossible to predict, a further decline in housing prices might necessitate further benefits reductions.

Stretching Your Reverse Mortgage for the Rest of Your Life

Many seniors secure a Reverse Mortgage to enable them to “age in place.” Aging in place means that you wish to remain in your home as long as possible – making necessary modifications or hiring home health care to keep you safe and comfortable.

Whether you are 62 or 90, it is important to consider your plan for aging and how you will fund long term care if it is required. If you are securing a Reverse Mortgage at a relatively young age, you should make sure that you will be able to fund the expenses nearer the end of your life.

The most significant cost of aging in place is typically a home health aide. The average national cost of services was $19 per hour in 2008. A person who needs a few hours of help from a home health aide in the morning and at night could easily spend $76 a day – which is around $2,280 a month.

In addition to considering home health care costs, you will want to assess whether or not your home is appropriate for aging and what modifications – ramps, a bathroom on the main floor or grab bars for example – would be necessary.

Should You Consult Your Family About a Reverse Mortgage and Other Retirement Issues?

It is not usually required that you discuss your decision to secure a Reverse Mortgage with family. However, it can be a very good idea to share your overall retirement plan – including Reverse Mortgage options — with your children.

There is a strong likelihood that your retirement plans will impact your children’s lives. It is estimated that at least 40 percent of today’s baby boomers are helping to take care of one of their parents – either financially, personally or both. It is therefore important to discuss your financial decisions with anyone who might be eventually be impacted by your plans.

It’s no secret that I like quotes. I am one of those guys who can get really motivated by the right words. And while some of the best encouraging quotes are in the Bible, there have been a lot of brilliant minds who have said some pretty inspiring words that still help me when I read them. So I decided to gather up the 10 best motivation quotes (in my opinion, of course!).

If any of them resonate with you, I encourage you to write them down and tape them to your fridge or computer screen. I have been greatly helped by having a constant reminder of a scripture or a quote to help keep me in line with what I am shooting for. It’s pretty cool how a little handwritten quote can speak to you when you need it. After all, “Like apples of gold in settings of silver Is a word spoken in right circumstances.” Pro 25:11.

“We are what we repeatedly do. Excellence, therefore, is not an act but a habit.”

- Aristotle

“Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all.”

- Dale Carnegie

“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light not our darkness that frightens us. Actually, who are you not to be? You are a child of God. Your playing small doesn’t serve the world. There’s nothing enlightened about shrinking so that other people won’t feel insecure around you. We were born to make manifest the glory of God that is within us.”

- Nelson Mandela

“The only way of finding the limits of the possible is by going beyond them into the impossible.”

- Arthur C. Clarke

“Nothing will ever be attempted if all possible objections must first be overcome.”

- Samuel Johnson

“As a well spent day brings happy sleep, so a life well spent brings happy death.”

- Leonardo da Vinci

“It’s not the will to win, but the will to prepare to win that makes the difference.

- Paul Bryant

“You will come to know that what appears today to be a sacrifice will prove instead to be the greatest investment that you will ever make.

- Gorden B. Hinkley

“Nothing great was ever achieved without enthusiasm.”

- Ralph Waldo Emerson

“The longer I live, the more I realize the impact of attitude on life. Attitude to me is more important than facts. It is more important than the past, than education, than money, than circumstances, than failures, than success, than what other people think, say or do. It is more important than appearance, gift, or skill. It will make or break a company…a church…a home. The remarkable thing is we have a choice every day regarding the attitude we will embrace for that day. We cannot change our past… The only thing we can do is play on the string we have, and that is our attitude. I am convinced that life is 10% what happens to me and 90% how I react to it. And so it is with you… we are in charge of our attitudes.”

- Charles Swindoll

Need some more motivating quotes?

These are a few other websites full of great famous motivational quotes…

• Inspirational Quotes
• Motivational Quotes
• Famous motivational quotes
• Hearts and Minds

What are your favorite quotes to get you motivated?

Bob enjoys dark chocolate, paying off debt, giving, Foosball, loose-leaf tea, helping people succeed, learning, anything God created, playing guitar, doing things the "long" way, Philippians, excellence, Chick-Fil-A, and making his wife smile. He started ChristianPF in 2007 and has been having a blast ever since. Find him on Facebook & Twitter.

I have now been using Ebates for a while and with it being completely FREE and incredibly simple, I am still surprised how few of people are taking advantage of it.

In an attempt to show how simple it is, I created a short little video to explain the process…

Basically, merchants pay Ebates to refer customers to them. Ebates then pays a chunk of that back to the shoppers themselves. Win, win, win.

That’s it. It is completely free, only takes a minute or so to sign up and then you can start earning money. I have now received 3 checks from Ebates and while I wish they paid monthly, they do indeed pay out every 3 months like they promised. To sign up just head over to Ebates.com.

Here is how Ebates describes the process:

A few things worth mentioning about Ebates

• The payout percentages vary from 1% to about 25%
• They have a ton of merchants – many well known stores: Best Buy, Walmart, Staples, and really about anything you can imagine
• Some merchants offer cash bonuses for signing up
• Ebates also offers referral bonuses for friends that sign up
• Payment options include Paypal or a paper check
• They also have a toolbar that will tell you if you are on a site that offers a cashback bonus

I signed up for Ebates last year and have added them to my online shopping arsenal along with Amazon Prime and Bing’s Cashback Program. Do you use Ebates? Has your experience been as good as mine?

Bob enjoys dark chocolate, paying off debt, giving, Foosball, loose-leaf tea, helping people succeed, learning, anything God created, playing guitar, doing things the "long" way, Philippians, excellence, Chick-Fil-A, and making his wife smile. He started ChristianPF in 2007 and has been having a blast ever since. Find him on Facebook & Twitter.

This article was written by Lakita Humber who serves as the founder of Paneh – A ministry which exists to educate, impart and equip those called to worship arts on a variety of subjects, such as D.A.N.C.E. Out of Debt.

Is There a Such Thing as a Free Lunch?

One of the tenets of economics is “There is no such thing as a free lunch.” The underlying concept is you cannot get “something for nothing.” The phrase originates from 19th century American saloons attracting drinkers by offering them a free lunch. The catch was, in order to get the “free” meal, you had to purchase a drink. Some saloon keepers were prosecuted for false advertisement. (Source) Ironically, this type of advertising campaign is still in existence and actually accepted today.

I began to wonder if there was such a thing as a “free lunch?” Is it possible to get something for nothing? Is there a hidden agenda behind every act of generosity? Is altruism nothing more than a pipe dream? Since part of the Christian faith is generosity and giving, I believe there IS such a thing as a free lunch – even if I’m the one providing it! The Bible has quite a bit to say about giving:

“Give generously to him and do so without a grudging heart; then because of this the Lord your God will bless you in all your work and in everything you put your hand to.” – Deuteronomy 15:10

“He who is generous will be blessed, for he gives some of his food to the poor.” – Proverbs 22:9

“If a brother or sister is without clothing and in need of daily food, and one of you says to them, ‘Go in peace, be warmed and be filled,’ and yet you do not give them what is necessary for their body, what use is that?” – James 2:15-16

As a participant in the 10-Day Give project I was able to observe the responses of some of the campaign recipients. Many offered some form of immediate reciprocation. For example, if I picked up the tab for lunch, they immediately offered to do the same next time. I told them that it was not necessary. For me, the promise of reciprocity negated the point of the giving project. For the most part, they were being polite. Admittedly, if the roles were reversed I would have offered as well. Still I can’t help but wonder; have we become cynical about giving and receiving?

Most advertisers, marketers and businesses are giving to receive. There is nothing wrong with that, their agenda is to make a profit. For example, FreeCreditReport.com will give you a “free” copy of your credit report once they sign you up for a monthly paid credit monitoring service. Many foundations and individuals give to charities and non-profits to receive the tax write-off. Other companies give money or promotional items in exchange for publicity.

Again, I don’t believe there is anything wrong with giving in order to receive; however, this should not be confused with selfless generosity. Many of us are business owners and entrepreneurs and therefore rely on the direct and indirect benefits of giving – great! Every once in a while let’s remember to give without expectation (except the promise outlined in Luke 6:38). It may be as simple as providing someone with a free lunch!

I have always had a feeling that contentment was a critical component of having joy in life. As I have been learning this lesson on a deeper level, I have written about it (here and here). But lately I have been seeing a new angle on a few verses in Philippians 4.

¹¹Not that I speak from want, for I have learned to be content in whatever circumstances I am.

¹²I know how to get along with humble means, and I also know how to live in prosperity; in any and every circumstance I have learned the secret of being filled and going hungry, both of having abundance and suffering need.

Philippians 4:11-12 (NASB)

I added a little emphasis to the parts of verses above that I have been pondering. What exactly was Paul talking about when he said he knew how to get along with humble means and prosperity?

I am sure that for him it was a bit of a challenging process to be content living in humble means. He was basically on the fast-track to become a super-Pharisee -  from what I understand they were a very materialistic bunch. Then Jesus steps in and his life is forever changed. And a few years later we see him in prison writing that we should “rejoice in the Lord always” and be content in every circumstance.

Breaking the attachment to things

The first way I look at the “know how” that Paul was referring to is more of an internal lesson that needs to be learned. It’s that things are just things. They come, they go. They don’t determine your value or worth and you can’t take them with you when you die. Paul had some of the most tremendous ups and downs. One minute he was shackled hand and foot in prison and the next he was staying in the King’s palace. He seemed to live the full spectrum of having a lot and having a little.

But, his outlook proves that he had broken his attachment to things. He didn’t consider his life a failure and quit when he frequently found himself in prison. And on the other hand, he didn’t allow more prosperous times to be his pinnacle achievement that he would hang his hat on. He had a goal to fulfill what God had called him to and the things were just peripheral, so as they came and went he learned not to care too much. He was successfully living Matthew 6:33.

Practically living with a little or a lot

In addition to the internal lesson, I am starting to suspect that there is a practical element to what he is saying as well. Could it be that Paul is also referring to the resourcefulness required when times are tight? On a practical level managing money is a lot different when you have a lot of it, than when you have a little. If Warren Buffett spent 2 hours of his work-day cutting grocery coupons to save $10 at the grocery store, it would be a pretty foolish use of his time. Those same 2 hours could probably be used to do what he does so well and make many thousands of dollars. On the other hand, if you are only making $100 a week, it might be worth spending 2 hours cutting coupons to save $10.

My wife and I both had the painful experience of living well (and spending more money than we had) and then having to be honest with ourselves by cutting our standard of living to what it really should be. It is not fun at all, but trying to live like you are “in prosperity” when you are in a season of “humble means” is a path for destruction. What I have been getting out of Phil 4:12 is that if I continue to try to live like I am rich, when I am not, then I am only deceiving myself. For me, moving from having an abundance back down to humble means was a test from God. I think he wanted to see if I would still love Him if I didn’t have a lot of stuff. So I had to make many cuts to my lifestyle. I had to go without things I had previously taken for granted. And I had to start praying and trusting God for things that were previously commonplace.

Like I said, it was a painful process. But all along I knew that it was just a season and that God had more for me. And as a result of those lessons we have gone from debt-ridden over spenders to a couple who consistently spends less than they earn, has no consumer debt, and who was able to save a down payment for their new house.

One last thing

Just to clarify, I don’t believe that contentment means settling for mediocrity. But rather it is being satisfied at whatever place in life God has us at, while trusting that He does have our interest at heart and that he does want to bless us and see us succeed. So, I am trying to learn these lessons that Paul did and be content in my present circumstances, while trusting that God is taking me from Glory to Glory.

Bob enjoys dark chocolate, paying off debt, giving, Foosball, loose-leaf tea, helping people succeed, learning, anything God created, playing guitar, doing things the "long" way, Philippians, excellence, Chick-Fil-A, and making his wife smile. He started ChristianPF in 2007 and has been having a blast ever since. Find him on Facebook & Twitter.

Happy Monday – it has been a busy weekend. Working on the new house – painting, cleaning, installing a sink in the basement, and installing a garage-door opener. The garage-door opener has been a bit of a challenge, but I always like a good challenge. Hopefully I will finish it today and get to take my victory lap – and the appliances are getting delivered today as well – and the internet will be installed – and I might paint another room… I am keeping myself busy, but it is FUN busy.

So, hosting the Money Stories carnival today works out nicely. I don’t have much to write, but I leave you with a bunch articles from around the web for your reading pleasure! Enjoy!

• Madeleine Begun Kane presents Mad Gift Giving Guide
• Diane Steward presents The Definitive Gold ETF Guide
• debt kid presents Are You a Saver or A Spender?
• Curt presents The Outsourcing Trend is a Trap, This Is the Time to Bring in College Interns and Hire Local
• The Smarter Wallet presents Reasons For Buying A Laptop Plus I Got A MacBook Air! saying, “I talk about how I got myself a laptop, which is a great investment….especially for my business!”
• Braudis Lee Pegram presents President Obama vs. Capital One .
• Ray presents Best Credit Card saying, “Credit cards have a bad name in the personal finance world, however using credit cards properly can be a big part of your financial plan. Here are a few tips on how to choose the best credit card.”
• jim presents Avoid Credit Card Cash Advances!.
• Matt Schulz presents Forget H1N1; nothing scares us like ID theft, survey says.
• David presents Credit Card Articles, Tips, News and Offers saying, “The Chase Freedom Credit Card is designed to catch the attention of those who are seeking a cash back card.”
• Tyler Tervooren presents Is Life Getting in the Way of Your Life? saying, “Lately I’ve been deep in debt, but not with money – with time. Funny thing is, the feelings associated with time debt aren’t that different from money debt. Overwhelm, stress, and frustration can get the best of us when we get behind with anything. Here are the steps I’m taking to solve my own time management problem. Hopefully you can apply them as well.”
• Patrick @ Cash Money Life presents Do You Know How Much Interest You Are Paying Each Month? saying, “I took a look at how much interest I was paying on my loans and the number surprised me! I used fictional numbers for this example, but the principle is the same for anyone who owes money on a loan.”
• Stephanie presents A Little Payoff.
• studenomist presents Poor Financial Planning For College Will Cost You.
• anotherjen presents Wow, Could It Be Time To Buy a House? saying, “A chance remark from my landlord makes my husband and I seriously consider if the time is right for us to buy a house…”
• Brandon Laughridge presents How Much House Can I Afford? saying, “Check out our new widget that helps home buyers estimate how much they can afford.”
• Dustin presents When Should Newlyweds Buy Their First House? saying, “A house is your biggest investment and the basis for long-term wealth building. Prices are down, tax credits are available, and everyone from your uncle to your real estate agent are urging you to act now…NOW!
• The Dough Roller presents 7 Lessons Learned from a Failed Attempt to Refinance a Mortgage saying, “Refinancing a home isn’t as easy as it use to be. Here are 7 lessons you can learn from my failed attempt to refinance.
• Manshu presents The fee ate my performance saying, “A post explaining how fees impact returns on mutual funds and ETFs.”
• Mary Jones presents Top 10 Most Stolen Cars and 10 DIY Ways to Keep Them Safe saying, “The Insurance Information Institute estimates a car is stolen every 24 minutes. To help keep your car from ending up like these top ten, we have also included the top ten DIY ways to keep them safe and protected from thieves.”
• Matt Mason presents Does Living In a Frugal Way Constitute Vanity?.
• Linders presents 8 Ways the Internet Can Make You Richer saying, “Hi there, this article shares a few easy ways people could make some money via the internet. I hope you enjoy the read. Thanks for considering it. Linda”
• FMF presents Money Lessons from Jim Nance saying, “One famous person’s sad money tale.”
• Jeff Rose presents What you need to know about your Medicare and Medicaid Benefits saying, “Here first hand how an elder law attorney advises her clients on how to prepare for your golden years.”
• Peak Personal Finance presents Lending Money to Friends and Family saying, “Lending money to friends and family can be tricky.”
• J. Savings presents Splitting The Check Evenly = Tipping Evenly? saying, “If 2 of you are dividing up a check, do you both leave the same amount of tip? And do you compare beforehand? Larry David does ”
• Tom @ Canadian Finance Blog presents Insurance You Can Do Without – Life Insurance For Your Child saying, “I went to a trade show this past weekend for parents that are either expecting or recently had a newborn. More than one of the booths was pushing life insurance for your newborn.”
• April presents Money and Marriage: Tackle Trouble BEFORE It Begins saying, “J.D. Roth shares a real life example of a relationship ruined by money problems. He goes on to detail the four financial issues that must be discussed prior to tying the knot: Ancestry, Credit, Control, and Affluence.”
• Rob presents Green Products That Save Energy | Energy Saving Gadgets saying, “The NuVo is Energy Star qualified which means it meets the government standards for being energy efficient. Saving energy means saving money in the long run.”
• Bucksome presents Fiery Ford Recall saying, “A personal story about a car manufacturer recall.”
• Baker presents How I paid off $15,000 in 9 months by selling my ‘Stuff’ on Ebay saying, “A Man Vs. Debt reader shares how she paid off a $15k student loan in only 9 months by selling 10 things a week on Ebay. Great tips for getting started selling your own junk on Ebay, Craigslist, and other online sites!”
• Silicon Valley Blogger presents Pet Care Costs: How Much Does Your Dog or Cat Cost? saying, “what are the costs of owning a pet?”
• Madison presents Finding the Value in Money
• Miss M presents You Are the Company you Keep.
• SingleGuyMoney presents Don’t Throw Your Money Away On Bank Fees.
• PT presents A Money Experiment: A Week Without Spending.
• And a few links to carnivals that CPF participated in.. 20-Somethings, Money Stories, Best of PF, Best of Money

Bob enjoys dark chocolate, paying off debt, giving, Foosball, loose-leaf tea, helping people succeed, learning, anything God created, playing guitar, doing things the "long" way, Philippians, excellence, Chick-Fil-A, and making his wife smile. He started ChristianPF in 2007 and has been having a blast ever since. Find him on Facebook & Twitter.

If you hate the unpleasant surprise of finding out how much shipping adds to your online shopping order, here are a few suggestions…

FreeShipping.org

This website has all the major stores listed and has coupon and promotion codes that will allow you to get free shipping on your purchase.

Amazon Prime

I have been using Amazon Prime for the last couple years and I love it. Basically you pay $80 a year to Amazon.com in exchange for Free 2-Day shipping on any item that they ship. I buy a whole lot of stuff from Amazon and so it is an easy decision for me. If you are not an avid online shopper it might not be worth it, but it is something worth considering.

Local Store pickup

Many brick-and-mortar retailers offer free shipping if you are willing to pick it up in the store. Walmart, Payless Shoes, REI, and Staples are a just a few of many that offer this service.

Do you have any tips for getting free shipping?

Bob enjoys dark chocolate, paying off debt, giving, Foosball, loose-leaf tea, helping people succeed, learning, anything God created, playing guitar, doing things the "long" way, Philippians, excellence, Chick-Fil-A, and making his wife smile. He started ChristianPF in 2007 and has been having a blast ever since. Find him on Facebook & Twitter.

Sometimes spending a little money today can save a lot of money tomorrow.  Common sayings support this notion: a stitch in time saves nine and don’t be penny smart and pound foolish.  A predictable characteristic of the poor is that decisions are made for today without any regard for tomorrow.  However, there a few fall chores that if completed today will save a lot of trouble and money tomorrow.  By completing these first two tasks you maintain and improve the value of items in which you have already invested a significant amount.  The third item is an opportunity to avoid a potentially dangerous credit trap – Christmas.

Save Money By Completing These Essential Jobs

Winterize the Car

Father Winter is knocking on the door.  You have held him back for long enough, but he is anxious once again to invade your life.  It is time, once again, to winterize your car.

• Be sure your wiper fluid has winter fluid that will not freeze over the winter.
• Check and be prepared to change your tires to more winter friendly tires.
• Put an emergency winter kit in your trunk.  Essential items include a blanket, flashlight, first aid kit, candles, and matches.  You might even want to include some instant toe warmers.
• If you have teenage kids you might consider getting a cheap prepaid phone for their winter outings.
• If you haven’t been to the mechanic for a while you should have a mechanic look over your vehicle so that it does not get stalled on a cold winter night.
• Have your battery checked.  Winters are hard on batteries so you want to be sure you have a good battery.

House Maintenance and Preparation

During the winter you want your house to be two things – warm and cozy.  The following suggestions make that possible.

• Check the position of your trees/tree branches.  If branches hang over your home, the cold weather and the weight of snow could cause them to break.  Fall is a perfect time to remove those branches.  Besides, the branch can create a shade over your house which will encourage mildew growth and even require more energy to heat your house.
• Check your gutters.  Clogged gutters can force water to leak around your house.  When the snow melts (and I promise it will eventually) you want it to go down the proper downspout.
• Remove air-conditioning window units and replace the opening with a well insulated widow.
• Weatherproof doors, windows, and vents.  If you have large gaps around your doors purchase a door strip.  A door sweep will cover gaps between the floor and the door.  For windows you may want to add some caulking.
• Has your heater recently been serviced?  If not, make the call.
• Cover window wells. Your local hardware store will sell plastic covers for your window well.  This will keep the snow from piling up by your window.  This is energy efficient and will also prevent snow from melting and leaking into the window.
• Check outside pipes – make sure that any pipes that are exposed to cold temperatures are insulated.
• Have your pool company prepare your pool for winter.
• Prepare for a winter storm – Flashlight, candles and matches, personal supplies, extra blankets, water (at least a three day supply), non-perishable food, pet supplies, and games to entertain the kids.

Put Christmas on Your Radar

You probably don’t want to think about Christmas yet.  Halloween is coming.  Thanksgiving is looming.  Perhaps you want to get through those holidays before you even entertain the idea of Christmas.  Still, you should start planning today for a Debt-free Christmas.  There are two key advantages to start your Christmas planning early.

Extra Time to Save For a Debt-Free Christmas

There is no away around this.  The more time you have, the more money you can save.  If you habitually enjoy Santa coming in December and the creditors in January, then this is the time to decide to change your Christmas tradition.  How much did you spend on Christmas last year? Take that number and divide it by 2.  That is how much you need to save in November and December to pull off a debt free Christmas.  If the amount is too much you will need to adjust your Christmas spending expectations or find a way to save more money.

Extra Time to Buy Christmas Presents

Here is the magical Christmas formula:

TIME + CREATIVITY = The best possible Christmas present for the lowest possible price

The more time you have to shop and the more time you have to be creative, the more likely you are to get more for less.

My wife and I bought our first Christmas present in July.  We had decided to get some items for my brother and were walking around an outlet mall that was having a 50% off ticketed price of their clearance items.  For $45 we were able to get over $200 worth of gifts.  This would not have been possible if we did not put the early Christmas shopping idea on our radar.  We were also in the right place at the right time.

Just because you decide to spend less for Christmas doesn’t mean anyone needs to get less.  Use the time and creativity head start to get some fantastic gifts at a phenomenal price.

Frugal people will spend money in the short term in order to save in the long term.  Cheap people, however, will not spend money today - even if that means costing more tomorrow.  For example, a frugal person will have her vehicle inspected when it starts making strange noises.  A cheap person will wait until the car completely shuts down (typically resulting in a higher mechanical bill).  Don’t be cheap.  Choose to be frugal by completing some of these necessary tasks.

Photo by dlco4.

Any other fall tasks you want to suggest?

Craig is a missionary who has spent over ten years working in various forms of Christian ministry. Currently, Craig lives with his family in Papua New Guinea. Relying on his ministry experience and background in Biblical Studies he writes daily personal finance articles from a Christian perspective. You can visit his site at www.MoneyHelpForChristians.com, on Twitter, or you can sign up to receive free daily email updates for his site.

Apparently all the talk about the $8000 first-time homebuyer tax credit being extended and expanded is coming to pass. According to a USA Today article…

“Senators agreed to extend the existing tax credit for first-time home buyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years”

Obama seems to be fully behind the extension of the tax credit, so it is will likely be finalized very soon. The proposed bill would extend the current $8000 tax credit for new homebuyers from it’s current end date of November 30th, 2009 to April 30th 2010.

A different type of deadline

Just to clarify, they are discussing changing how the credit deadline works. Currently, you have to close on your home purchase by November 30th to be eligible. But under the new plan…

“The Senate agreement stipulates that buyers must have a sales contract on a house by April 30 to be eligible, but it gives them an additional 60 days to close the purchase. Looked at one way, the effective deadline of the credit under this agreement is actually the end of June.” (USNews)

Rules for current homeowners

As mentioned above, it would also allow current homeowners to get in the game by offering them $6500 if they have been in their current house for at least 5 years.

“The current credit prevents home buyers who have owned a primary residence within the past three years from claiming the credit. The agreement, however, would allow current homeowners to claim up to $6,500 as long as the property they are vacating has been their primary residence for at least five years.”

If you are a current homeowner looking to get in on the $6500, it would likely have an effective date of December 1st, 2009.

Income restrictions

As with the first round of the credit, it is not open to higher-income earners. It is open to higher earners than the first round (originally it was $75,000/single and $150,000/joint). Single filers making more than $125,000 and married couples making $225,000 or more aren’t eligible either. And if you have been eye-balling a million dollar house, that isn’t eligible either.  “Homes that cost more than $800,000 aren’t eligible for the credit.”

A few other points about the credit worth mentioning…

• You can’t use the cash to buy a vacation home. Only primary residences are eligible.
• Also you must be at least 18 years old to be eligible. Doing the research for this article I found a story of a 4 year old that claimed the credit.
• The current tax credit has cost taxpayers about $8 Billion. And BusinessWeek estimates that the new one will cost us $10.8 billion.

So if you are are a current homeowner – is $6500 enough to get you thinking about buying another house?

Bob enjoys dark chocolate, paying off debt, giving, Foosball, loose-leaf tea, helping people succeed, learning, anything God created, playing guitar, doing things the "long" way, Philippians, excellence, Chick-Fil-A, and making his wife smile. He started ChristianPF in 2007 and has been having a blast ever since. Find him on Facebook & Twitter.

Well, yesterday we closed on our first house. It was a pretty eventful day – a lot of moving parts all coming together at the same time. Building our house has been a fun and occasionally stressful task, but we can now say that it is behind us and get started living in it! We successfully beat the November 30th deadline for the $8000 tax credit for first-time home buyers (unless it is extended), so after filing our taxes next year, we should get a nice bonus.

I want to thank all the readers for your help in this process. I have gotten some great suggestions from many of you and lots of great ideas as well. I will try to consolidate some of the lessons I learned over the last few months into an article soon.

By the way, the double window is where my office will be located, so if you stop by to visit you will see my smiling mug up there!

Bob enjoys dark chocolate, paying off debt, giving, Foosball, loose-leaf tea, helping people succeed, learning, anything God created, playing guitar, doing things the "long" way, Philippians, excellence, Chick-Fil-A, and making his wife smile. He started ChristianPF in 2007 and has been having a blast ever since. Find him on Facebook & Twitter.