first time home buyer – owner loan

michaelstromsteen111 asked:


You might be taking a closer look at becoming a first time home buyer after Congress passed the housing bill recently. The bill includes a few incentives that really make now the perfect time to jump into the market and become a first time homeowner. Of course, the depressed real estate market is enough incentive for quite a few people wanting to take advantage of the lower prices of homes; however, the government is now offering a tax">http://first-time-home-buyer-s.com/firsttimehomebuyer/38/tax-credit-for-first-time-home-buyers-2/”>tax credit for first time home buyers that makes it hard to not jump in. The full tax credit of $7,500 is exceptional as it is obtainable to couples who make no more than $150,000 in joint income, which makes a huge number of people able to qualify.

Quite a few people are feeling that the time is right for them to get active in the housing market, buy their first home and utilize the incentives including the tax credit. The people with the most to offer the market are the first time homebuyer who does not bring additional housing into the market; all they bring is their ability to buy.

The tax credit is appealing to many because it is not something in which you have to apply; it is something you claim when you do your taxes. However, the tax credit does not come without certain requirements and regulations.

The tax credit is based on 10 percent of the sale price of the house with a roof of $7,500. This means that a house that sells for $75,000 or more will qualify for the full $7,500 credit. A house that sells for $65,000 will only qualify for $6,500 credit.

It is also important to note that the tax credit is really more of an interest free loan that has to be paid back over a 15 year period. When you claim the tax credit you will receive the total amount on your taxes and will then have to pay it back over the next 15 years with the total remaining balance due if you sell your home before the loan is paid off. Since there is no interest on the credit it will cost you $502.50 a year if paying back the full $7,500 credit.

There are other incentives available through state programs and private programs such as a lower interest rate for public servants such as teachers, military, police and firefighters. These incentives are available for all, not just first time homebuyers.

Down payment assistance is also available from many lenders; however, the requirements and restrictions are a bit stricter now than they have been in the past. The credit score is very important when applying for a 0% down payment program.

A realtor can and often will point you to more incentive programs than even the ones discussed above. The housing market is defiantly a buyer’s market and for anyone who is considering entering the market now is the best time. To take advantage of the tax credit you will want to close on your new home before July 1, 2009 so you might want to start getting ready now before you lose out or the market changes.



Keith