first time home buyer – owner loan

February 14, 2011

First Time Home Buyers Stimulus Help

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 5:16 pm
Suzan Smith asked:




Purchasing a home includes a lot of things to consider especially if this is the first time that you will buy a home. Considerations would be the price of the home, how many rooms does the home has, the location of the house if it is close to your workplace or kid’s school, the furnishing of the home, and a lot more things that may affect your stay in the home.

This is the first year of President Barack Obama’s term as a president of the United States and on his first few months, he signed one of the best projects to help first time home buyers to get credit from the house that they may purchase.

First time home buyer could mean a person who didn’t purchase a home for the past three years. This will include credit up to maximum of $8, 000 or 10% of the acquisition of the amount of the house.

Planning is the best and first thing that you will need to do. Taking notes on how much you are earning and how much you are spending is a good way of planning before buying a brand new home.

It is also advisable to clean your credit report before buying a home. In this way, it will be easy for you to be approved in any kind of loan that you may apply.

You may speak to your lender in applying for the First Time Home Buyer’s Stimulus program; they may have the information on how you can apply and how you can prove that you can pay for the loan in your own way. For the first time home buyers, there can be loans offered in order to pay the mortgage in which, is reasonably priced for the buyer and easy to pay.

Sean

October 7, 2010

First Time Home Buyer Mortgages in Colorado

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 4:29 pm
Damian Sofsian asked:




Being a first time homebuyer is bound to give you the jitters, especially if you do not know what steps to take to ensure that you will make a good purchase. A lot of questions need to be asked and answered. Some of your concerns should be what property to buy, in what location, and what are the features of the house you require. After answering all these, you need to check if your budget fits the price of your chosen house. If not, what alternative is open to you? Are you willing to mortgage your house in order to finance your purchase of the same?

If you plan to make your initial purchase of a house in Colorado, you are bound to be overwhelmed with the many choices presented to you. To put some direction in your purpose, it is safe to consult with a professional who can steer you into the right path. As a first time home buyer, you will encounter such terms and phrases like insurance and property taxes. If you need financing, then you will also hear the words, interest rates, home mortgage loans, credit report, among others.

Availing of a loan and mortgage to finance your home acquisition means that you have to do some extensive research in order that you get the best deal possible. Your sources could be referring to the classified ads for real estate as published in the newspapers and consulting with the financing companies or their partner banks for more information on mortgage transactions. You can also get some ideas from the Internet as most financing companies have their own websites you can browse. In Colorado, the financing companies are very competitive when it comes to the interest rates they offer, hence you can shop for the lowest rate. Low rates are usually accompanied with easy payments schemes.

In the end, how you evaluate your options is the most effective strategy you can adopt in finding the best deal in the mortgage you undertake as a first time homebuyer in Colorado.

Lydia

January 4, 2010

3 Ways your First Time Home Buyer can come up with the Down Payment

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 2:34 am
Heather Dunlop asked:


I love the house, but I don’t have a down payment”

 

How many times have you thought that?  Many buyers are looking at houses and they think they don’t have a down payment.  Don’t walk away from the house.  There are ways you can come up with the down payment. 

 

Here are 3 ways you can come up with the down payment.

 

1.       Use money from an IRA (it doesn’t have to be their own IRA)

The IRS allows a first time homebuyer to withdraw up to $10,000 from an IRA penalty free and tax free. 

If your are married, each spouse can each withdraw $10,000 penalty free, giving you $20,000 to put down on the home. 

 

What if you don’t have an IRA?  You can ask someone in your family if they have an IRA.  Family members are allowed to give you money from their IRA to use toward the down payment of a home for a first time home buyer.  The IRS will allow the first time home buyer, their spouse, a child, a grandchild, a parent or other ancestor, to withdraw $10,000 from their IRA penalty free and apply it to the purchase of the home.

 

For the withdrawal, the IRS defines a first time home buyer as “you are a first-time homebuyer if you had no present interest in a main home during the 2-year period ending on the date of acquisition of the home which the distribution is being used to buy, build, or rebuild. If you are married, your spouse must also meet this no-ownership requirement.”  (http://www.irs.gov/publications/p590/ch01.html#en_US_publink10006447)

 

Before you withdraw funds from an IRA, make sure you check with your accountant.

 

2.       Use the First Time Home Buyer Tax credit

Some states allow the tax credit to be used as the down payment for the home of a first time home buyer.  That’s great if you are in one of these states. 

 

If you are buying  a house that is not in a state that allows the first time home buyer tax credit to be used as the down payment, there are some other ways to accomplish the same thing.

 

That is why it is critical that you speak with an accountant before taking the loan out of your 401K.

 

You could borrow money from a relative or family member and pay back that loan when you receive the first time home buyer tax credit.  The advantage here is that you can repay the loan in full when you receive the tax credit, instead of making monthly payments.  You should first check with your  accountant to see how much of the tax credit you will qualify for.

 

3.       Borrow from family

Many family members want to see you in their first home.  You can ask family if they will lend you  the money for the down payment.  To entice them to lend you the money, you need to offer them something in return.  You should offer to pay them interest and set the amount of time it will take to pay back the loan, and how much you will pay them each month/quarter/year. 

 

This loan can also be secured by the house as a second mortgage.  There is no rule that states the 2nd mortgage has to come from a bank.  As long as the bank is secured in 1st position at an LTV that is acceptable to them, and they know where the down payment is coming from, they should be OK with making the original loan.  The family member that is loaning money to you is in a secure position because their loan is secured by the house.

 

These three items should help you get you into your first home. 



Marlene

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