Kary Cambell asked:




The US economy has been suffering for some time and when the recession of 2008 crept in it was obvious to many that something had to be done to stem the tide of worry and disillusionment among our citizens. In 2009 President Obama signed into being an economic stimulus program that was aimed especially at first time home buyers – people who had either never owned a home or who had not owned a home within the last three years.

This remedy became necessary when people began suffering after the downturn in the economy, resulting loss of jobs, and increasing home payments as adjustable-rate mortgage interest adjusted upward, causing many people to fail in making their monthly house payments. Those who defaulted had only a short time to recover and when they couldn’t do so, they lost their homes to foreclosure. Sometimes without recourse, people abandoned their homes and their dreams and were forced to make other living arrangements.

Americans expect support from their government in times of trouble and that support has come in the form of the First Time Home Buyer Stimulus Program. With incentives such as down payment assistance, lower interest rates, and income tax credits, home ownership is once again something about which people can dream.

When people look for their first homes, there are many emotions that go into that decision. Some would-be home buyers are reluctant to make such a huge financial commitment but their desire for a home usually wins out over their doubts. And because it is such a huge obligation, careful planning is essential. Taking advantage of the government stimulus program is going to help make more dreams come true in a relatively painless way. The loans that can be obtained will come with reasonable interest rates, lower monthly payments, and smaller down payments.

Tax credits are also a part of these programs and will save you money at tax time possibly allowing you to spend extra on something else you might want. Maybe you’ve postponed a trip or perhaps it’s been a long time since you bought something that you previously thought was frivolous. Whatever you plan to do with your money you will be helping to stimulate our ailing economy. Whenever you spend money, the ripple effect goes into motion and your dollar spent is another person’s dollar earned. When people use their money in this way, other people keep their jobs and the ripple moves on to the next person.

Consumers who consistently live frugally, may find it difficult to get past that mindset when there is an improvement in the financial landscape. The First Time Home Buyer Stimulus Program will help to ease the concerns of people who have for sometime found themselves in that category of frugal spenders. It has the potential of creating more home owners and more jobs and giving hope to a new generation of people. This can be the basis for our recovery as we try to find new and better ways of living so that we can continue to indulge in the American dream of home ownership.

Megan

Cecilia Sherrard asked:




There are probably few things in life that are as exciting–or as nerve-
racking–as the search for a house. All the good emotions and the bad
emotions seem to converge when the house hunting begins. Don’t
worry, this is a normal reaction, and is found in seasoned home buyers
as well as those who are looking for their first home. Buying a home for
the first time can bring many questions. Ideally, it would be best to
meet with me in my office or even go over your questions on the phone
before starting the process. I have put this page together to explain the
beginning stages.

Many first time homebuyers go through the (Renting vs. Owning)
process. If you’re currently a renter, you certainly are aware of the
money that you spend monthly and the fact that none of it comes back
to you. You also know, when the water heater goes out you just make a
phone call! There are pros and cons of course. Owning your own home
brings new responsibilities along with a positive financial outcome. It’s a
long-term investment. You can take advantage of tax credits,
appreciation, and your home’s equity down the road. When I rented my
first home, I remember wanting to do certain things to the home
including changing the carpet color. My landlord said ‘no’ They wanted
to keep it ‘neutral’ for a future tenant.

I also remember going to the
local animal shelter to get a kitten. (I already had one cat, which was
okay. I was lucky to have that.) The shelter had to phone my landlord
for permission! There I was holding this kitten and already falling for it,
only to be told ‘Sorry your landlord said no.’ I had no idea the shelter
required owner’s permission, and I had never talked with my landlord
before about getting a ‘Second cat.’ So I gave the cat back, and was
completely humiliated. I felt like they were calling my parents! Yes I was
young, but I knew then, I needed to have my own home. Freedom was
my deciding factor. I now have a boat on my front lawn, hot pink
carpet and 37 cats. (Okay, I don’t really have a boat.)

One of the first decisions you need to make is whether you want to do
your house hunting on your own. If you decide to go it on your own,
you won’t be represented and may not be seeing ALL the homes on the
market. If you contact agents for a particular home either by the sign
out front, in an ad, or going through an open house, remember, the
agent selling the home represents the seller’s best interest not yours. If
you decide to use an agent, have your own (Buyer’s agent.) You
certainly wouldn’t call upon the prosecuting attorney to represent you
in your defense or answer your questions. The more I know about your
situation and needs, the better I can assist you. There is no contract to
sign while working with me. No fees, no strings attached. That is why
it’s important to utilize my negotiating skills and knowledge of the
market.

Once the decision to buy a home has been made, take the time to
prepare before you go on your home search. Yes, it is very tempting to
rush out and actually look at houses, but to do so without full
preparation can be both disastrous and expensive. You will find that
“house hunting” is down on the list.

Get your financial affairs in order first! I can’t stress this enough–it will
save you an enormous amount of time, aggravation and heartache.
Determine what your budget will comfortably allow and stick to it. Don’t
spend yourself into a ‘house poor’ situation.
Get pre-approved for a mortgage. This will not only give you a clear
idea of how much a lender will approve you for, it will make your home
buying process a great deal easier (and save a lot of time later). I can
provide you a list of reputable trustworthy lenders. (There are a lot of
lenders out here, not all created equal.) I often hear people mentioning
pulling their credit and worried about losing points, when they aren’t
even sure they will be buying a home. With so many loan programs out
here, people sometimes don’t realize that they can actually afford more
or less than they thought. Having your credit checked can also bring up
any mistakes/errors that you can start to fix now and have solved before
purchasing.

Get familiar with the different housing types available to narrow your
search. Determine your minimum requirements as well as any desired
additional features and your needs and wants. Prepare a ‘Must haves’
list.

Take note of any items that you don’t want in a house.
Determine the desired location (schools, work, public transportation,
etc.) It’s important to narrow down the areas you are interested in as
much as possible. Drive around, check the cities local websites, look
into area schools and tax rates.

As you are looking, use a scorecard to compare homes. A scorecard is a
great tool when it comes time for comparisons (and for remembering
which home had which features!)

When you find something you like, your agent should pull recent
comparables (Similar homes that have sold) and research the property.
This way you know the true value and what an appropriate offer would
be.

Maintain your perspective–and your cool! You may find your perfect
house on the 1st day–or the 50th. The important thing is to get the
home that is best for you! Remember also, I’ll be with you every step of
the way. Many of my past clients can testify that I am addicted to
foundations, plumbing, electrical, roofing and the ‘guts’ of a home.
Through the years I’ve attended enough inspections and classes to
detect potential areas of concern. Make sure your Realtor is educated on
the mechanicals of a home.

I can help find flaws in a home, recommend certain repairs, give a basic
estimate of work needed, give you pointers on finding a house with a
good resale value, and provide you with a list of professionals from
insurance agents, to home inspectors. (Reasons to work with a good
Realtor.)

I believe good sound advice, personality, experience and genuine care
for my clients is what sets me apart and is the reason I receive referrals
from happy home owners.

I don’t consider what I do sales. I think of it as private representation,
counseling, advocacy, and helping people achieve the dream of
homeownership. If your agent ever makes you feel ‘sold’, pressured, or
something just doesn’t feel right in your gut, get a new one!

Cecilia Sherrard

Realty One-Cleveland Ohio

Laurie

Julie Fontaine asked:




First time home buyers should love short sales, despite all the rumors that may be in the market. Most complaints about short sale, particularly in the San Diego market, generally come from the lag time between when an offer is put on the house, and when the bank gives the green light on the price. Gone are the days that an offer is made and 3 days later it is either accepted or rejected when it comes to short sales. First time home buyers have many reasons to love short sale, and need to understand the opportunities and pitfalls that may arise from a short sale purchase. Here are a few reasons why a first time home buyer should love short sales:

1. Bargain Home Prices. Home prices, at least in the San Diego market are at all time lows. The purchase of a short sale will allow first time homeowners to benefit from an affordable monthly mortgage. It is often possible even to purchase a home at a price lower than fair market value.

2. Up to $8,000 in Tax Incentives. The Making Home Affordable Program allows for a tax credit up to $8,000 for first time home buyers. This is a savings right off your bottom line, making homes even more affordable, particularly in San Diego where we work. First-time home buyers may benefit from tax incentives, grants, down payment assistance and other financial incentives when purchasing a property through a short sale.

3. Lower Taxes & Insurance. Property taxes are assessed based upon the purchase price at the time of sale. Taxes and insurance represent a significant portion of the annual housing expense. Purchasing a short sale property at today’s bargain prices may result in dramatically reduced taxes and insurance rates. Thanks to California’s Proposition 13, taxes will remain at record lows for the duration of your ownership in this home. The savings will live on.

4. Motivated Sellers. As home prices continue to decline and homeowners are seeing their equity position diminish further and further, homeowners are motivated to sell. Many short sale situations are homeowners already facing foreclosure and they are in a race to beat the foreclosure clock. For many facing foreclosure an offer on the house may provide and emotional relief as they see the foreclosure date approaching. The bank will postpone the foreclosure if they see a reasonable offer on the table. This may also allow additional time for the homeowner to stay in the house while the short sale is being negotiated. There is nothing short in the time frame of a short sale, so buyers and sellers should anticipate hanging in their until bank approvals are procured.

5. Affordable Interest Rates. Despite the financial crisis in the banking industry, mortgage rates are still low. Hovering around 5.5 percent, home ownership is still extremely affordable, often time more affordable than renting! A home bought for around $135,000 would result in a total monthly payment, including taxes and insurance, to around $1,000! You can barely rent a one bedroom condo for that in Southern California! You can fix your monthly payments, while building future equity through loan amortization and future appreciation.

6. Negotiable Extras. Motivated sellers will often sweeten the pot by throwing in extras such as a jacuzzi, flat screen TV, and furniture they may no longer need or have room for in their next place. Don’t be afraid to negotiate appliances or other extras as part of the negotiation process. I’ve seen boats, antiques, appliances and even a motor home acquired by just asking for it!

7. Buying As-Is With A Discount. Most short sales are sold “as-is” with no repairs made by the seller. Be sure to have a home inspector lay out any problems with a home and get an estimate for that work. Ask for a discount on the purchase price of the house for that defrayed maintenance cost. First time buyers can score big on those discounts. By doing the work yourself, you can save thousands of dollars. Simple tasks such as painting, yard work and other minor repairs that can be done by the new home buyer can create instant equity in the home.

Natalie

Lokesh Nagpal asked:




There are a host of financial incentives provided by the federal government to encourage people to purchase their own home. The most important and biggest of these is the one included in the Worker, Home ownership, and Business Assistance Act of 2009. In accordance with the provisions of this act, an amount of USD 8000 is extended as a tax credit amount to qualified first time home buyers. It is big monetary benefit to the first time home buyers since one does not have to repay this amount until and unless the property is sold or is not used as principle residence of the beneficiary who claimed the tax credit.

What are the necessary conditions to be fulfilled in order to be eligible to avail this tax credit? In accordance with the IRS definition, a first time home buyer is a person who has not purchased a residence during the immediate three years preceding his purchase. Income levels of single buyers and married couples have been stipulated above which the tax credit is not available. For properties purchased between the periods Jan 1, 2009 to November 05 2009, the maximum income level of a single buyer has to be less than USD 75,000 and in case of couples who are joint holders, the income levels cannot exceed USD 150,000. Similarly for sale transactions executed from November 06 2009 to April 30, 2010, maximum income level could be USD 125,000 and USD 250,000 for single buyers and couples respectively. You can file for availing a joint credit only in case either spouse has not purchased a home within the last three years. The couple still has the option of taking a credit by purchasing the house as a single buyer in the name of the spouse who has not purchased a house in the last three years.

Some important points that you need to note about the first time home buyer credit include the fact that the amount of tax credit available depends upon the property price The tax credit available equals ten percent of the property purchase price with 8000 USD being the maximum amount that can be claimed. The other key point to be noted that not all homes purchased would qualify for this rebate. Only those houses with a maximum price of USD 800,000 would be considered for granting home buyer credit. To be included in the list of beneficiaries you have to ensure that you purchase a home by April 30, 2010, sign the necessary contract papers and complete the sale by June 30, 2010 in order to be eligible under this scheme.

The process of making a claim for the home buyer credit is easy. Submit two statements namely the HUD-1 settlement statement and the IRS from 5405 and walk away with a maximum credit of USD 8000 provided you fulfill the eligibility conditions stipulated by the federal government. IRS allows all those people who buy a home in 2010 to file an amendment to their 2009 tax return and stake their claim.

Colleen

Jackie Beem asked:




There was a time not too long ago, before the mortgage mess, that even a First Time Home Buyer with Bad Credit could still fairly easily get a home loan.

]]> http://firsttimehomebuyer.info/real-estate/first-time-home-buyer-with-bad-credit/feed/ 0 http://firsttimehomebuyer.info/real-estate/obamas-first-time-home-buyer-stimulus-2/ http://firsttimehomebuyer.info/real-estate/obamas-first-time-home-buyer-stimulus-2/#comments Thu, 17 Mar 2011 18:37:14 +0000 admin http://firsttimehomebuyer.info/real-estate/obamas-first-time-home-buyer-stimulus-2/

Suzan Smith asked:




Obama’s first time home buyer stimulus is for those people who had postponed buying a house due to the sudden outbreak of recession in late months of 2008. The US President Barack Obama and his team of administrators have planned and signed 2009 economic stimulus package and there are many sections and programs under this mega stimulus package. The first time homeowners are in fact the tenderest section of borrowers and they have lot of fear in their mind before and after possessing the loan.

However first time homeowners need to be very careful while seeking loan and believe the reliable sources only. The financial crisis has left everyone with postponed dreams, shopping and spending even on useful accessories. There are people who have postponed the renovation or modification in their house, or if they had previously planned to buy a house, they have postponed that too. But the government wants to help the first time homebuyers to come forward and buy their dream house. And for this they are offered very fewer rates of interest and the tenure for repayment is also increased.

Obama’s first time home buyer stimulus has much more to offer than just lower rate of interest to the first time homebuyers. This policy aims to give tax credits to the first time homebuyers who purchased their house between January 1, 2009 and December 31, 2009. The tax credit has $8,000 at its upper limit and is 10% of the present value of your house. This will help the homeowner save a lot as tax benefits and they will have considerable amount of money left to spend on other liabilities, responsibilities or mere luxuries.

The people when relieved of the financial tension and with some money left in their pocket every month, will go out and spend them in the sectors of their needs and interests, boosting up the country’s economy in return. So the main intension of the Obama government was to allow people have surplus money in their hands, which will directly affect the customer-spending percentage. This will help money stimulate in different areas of the market and society, which ultimately will increase employment opportunities in various sections and departments too.

The first time home buyers stimulus has fixed the income limitations of the buyer which is a very good sign so the less privileged class will get the benefit of the stimulus plan.

Glen

Tim C. Wood asked:




To rebuild US economy that had tumbled due to recession in the third quarter of 2008, President Obama and his administration has signed up 2009 economic stimulus plan that has to work on many aspects. Almost all the citizens are facing financial crunch and thus are unable to meet all responsibilities. It was felt by the team that among all of them the most sufferer is the sect of homeowners who had taken home loan under high rate of interest and due to the financial crisis they are now unable to repay their loan amount. The first time home buyer stimulus is specially designed to help the first time homeowners to have their house on easy terms and lower interest rate.

When anyone buys his first house it is much more than just a house and investment. There are lot of emotions and sentiments involved in buying and decorating it. It is ones dream house that has many years of planning and savings in it. And if due to non-repayment, this house is on the verge of foreclosure, it has not only the pain of loosing the house but also much more than that. The dreams and emotions attached with that house are unmatched. So there is a special package for first time homeowners so that they can buy their house on affordable rates.

First time home buyer stimulus has made buying home easier and affordable for most of the citizens who had postponed buying house due to the current financial condition. Since the first time homeowners are offered quite less and fixed rate of interest, they are able to pay the installments also. The monthly installments are fixed keeping in mind the monthly income of the borrower so that the loan is completely affordable for them. They also get tax rebate here and so the money saved every month is used in other things like shopping new apparel for young ones or kids that has been postponed for some time seeing the hard days.

There are people who have not gone out to dine and if they are relieved and they save some money every month, they can go out and dine or plan a weekend holiday or so. In this way other sectors of the society is going to be benefited and this will enhance employment opportunities also. As soon as the customer-spending percentage will increase it is going to affect all the sectors of life and society.

Janet

Damian Sofsian asked:




Eventually, everything boils down to owning that house that you have been dreaming of. You have tried and have become tired of living in apartments, in condominiums, in rental homes, and in your parents’ living room. However, you still crave and long for that structure that would be under your name and that you can call your home. And if luck prevails, you may own the home that you have been dreaming of.

One of the things that helps out first-time home buyers are first-time home buyer programs. These programs have been designed to assist people who are engaging in buying a home for the first time. Also, they have been designed to assist low-income families or to interest first-time home buyers. These types of programs assist those people who are in dire need of help when it comes to purchasing a home.

One of the tips that these first-time home buyer programs give to interested parties is that every buyer should be able to take full advantage of the various programs for first-time home buyers, because these can greatly assist them in obtaining lower interest rates. Most of these groups that provide first-time home buyer programs are generally aware of the situations that different types of interested parties have. That is the reason why these groups have also considered these situations and have provided various kinds of assistance for people with different needs.

Knowledge of how these first-time buyer programs work could prove to be an essential tool in taking advantage of them. Further information could be gathered through the Internet, or people could also get in touch with these groups that provide first-time buyer programs.

Irene

Indra S. Asserfea asked:




Real Estate has always known to be a good investment. If you look Although you may say “No, look at what happened to our economy because of real estate”. Well my answer to that is it isn’t the real estate itself but, the system that was in place and the methods that were used to purchase real estate is what got us into this mess. Now with the government’s help and new rules and regulations for all of us, our sources of funds to continue buying real estate still remain with the banks. Banks will begin to lend again but with those new rules in place otherwise we will not be helping the “flow” of our economy and getting ourselves out of a recession. So now that you can trust again, let’s look at the benefits for a first time home buyer especially in this economy.

1) Low Price – It is a “Buyer’s Market” and what this means is that there are multitudes of houses in the market place for buyers to choose from. There are both good and bad to this type of market. The good thing is that prices are extremely low and this is really, really good for a first time buyer. The bad thing is because you have so many to choose from, a buyer becomes indecisive. Why? Because a buyer thinks he’s making the wrong choice over another property. This, for a first time home buyer who does not know the pros and cons can be an excruciating ordeal which could lead to a “freeze mode” and thus, end up not making a decision to buy at all. So do not allow the numerous choices to get you down, buy now because the prices won’t always be like this.

2) The New Federal Housing Tax Credit – A tax credit of up to $8,000 has become available for first time home buyers if they were to purchase a home between now and the end of this year 2009. Plus this credit does not have to be repaid. If you have not owned a home in the previous three years you are eligible. Income is also a determination as to the amount that you may be eligible for. The reason this was enacted is to help put some surge into our economy and we should take advantage of it if we can. It is free money that you file for in your 2010 tax return. So hurry! You only have nine months left and considering it takes approximately 60 to 75 days to close a loan, you might want to begin your search now if you haven’t already done so.

3) Don’t Have a Lot of Money? – No Problem. There are still many types of loans that are out there for a first time home buyer. Speak with your Realtor if you are using one or your Mortgage Broker if you know of one or any direct lender. You can also go on to my website for more information [http://rem10p.uellc.net] and or send me an email if you’re seriously interested in buying a house at this time and I can help you achieve your goal.

Brent

Kary Cambell asked:




Many Americans waited patiently for, and was watching for Obama’s first time home stimulus plan to emerge. Now that it is here, all eyes are watching the housing industry like a hawk. This includes, real estate companies, big lenders, politicians on both sides, and of course, the potential receivers of this plan.

As detailed by his now enacted law, Obama has made the way, for first time homeowners, an eight thousand tax credit in helping them reduce the burden in the purchase of their homes. Obama has set aside this stimulus money in the hope to draw some relief for the housing market, which has suffered greatly in the recent recession. This stimulus plan seems aimed at kick starting the failing economy, which so badly needs that kick in its rear.

This first time home stimulus plan has undeniable benefits for those first time homeowners who were unsuccessful in their past bids to buy a single family home. This economic stimulus plan has left the real estate industry scrambling back to their calculators to estimate the windfall that will be soon coming their way.

This potential boom in the housing market will also benefit local businesses that have suffered with the loss of business due to the multiple housing foreclosures in their townships. Many people are optimistic in their hopes that this plan will somehow rise up the economy once again bringing financial prosperity back into their communities. With these thoughts in their minds and their eyes on the stimulus plan, most Americans are for once, almost placid with their fears, in the face of the recession.

One has to wonder why Middle America has not thought of the possibility of this stimulus plan of Obama’s having an adverse affect on the housing market. These first time homeowners, that until recently could not afford even the thoughts of owning a home, now have that opportunity.

What is in store for these first time homeowners when the mortgage companies decide to ante up their mortgages? What happens in the aftermath of floods, tornadoes and other natural disasters that will leave these new homeowners at the whim of insurance companies, remodeling costs and requesting bank loans to finance the rebuilding of these homes? If the American people are watching this stimulus plan go into affect, they should also be watching out for the mishaps that always seem to plaque homeowners.

Melissa