first time home buyer – owner loan

February 16, 2011

Tips For First Time Home Insurance Buyers

Filed under: Custome — Tags: , , , , , , , , , , , , , , — admin @ 8:58 am
Ian E. Wright asked:




Insurance is a thing, which protects an individual and helps to come out from an unexpected crisis in life. It is a difficult job to find a reliable first time home insurance policy.

First time home insurance buyers need to consider that, home insurances come in a variety of figures and sizes. They may range from extremely narrow “cited risks” to “open risks” package, covering necessarily everything coming under the roof of a house.

With just a simple research in the marketplace of home insurance policies, people will get knowledge about many challenging claims, agreements, and clauses arriving at their doorways almost daily.

For first time home insurance seekers, who look for sophisticated and dependable details regarding home insurance policies, it is extremely important for them to find the correct source and home insurance provider offering favorable cover.

Vital Factors to Consider in the First Home Insurance:

Homeowner’s insurance or Home insurance of recent time offers certain section of protection for things owned by the home insurer. First time homeowner’s buyers will also find home insurance policies ranging from definite to broad types. Of which, some may or may not cover features such as natural disaster coverage or injury.

First time homeowner’s buyers, those are stepping into home insurance market to find a suitable and affordable deal, need to understand the various types of coverage and premiums offered by these policies.

One usual type of home insurance is the coverage for basic belongings damage with a digestible purpose. Actually, the home of an individual is more valuable than the belongings and, hence the priority needs to be the home.

First time buyers also have to remember that, the condition and locality of a home plays a vital role, to determine the premium rates for a home insurance policy. For example, homes located in high-crime areas illustrate a higher threat for the home insurance providing firms, and thus, they charge insurance buyers accordingly.

It is good for first time insurance buyers to discuss with the insurance agent or the provider about any coverage for human injuries occurring from home as such due to poor construction or poor maintenance.

Several first time home buyers mistakenly assume that their home insurance policies will cover their homes from natural calamities as such floods and earthquakes, but this is not the case often.

Perils linked with such untoward events are usually topographic features, and many areas may carry huge premiums to cover the home from such type of natural damage.

Final Things to Look For:

Next, there numerous other factors that may determine the final decision for first time home insurance buyers. These factors may be the finances due on mortgage or the credit scores of home insurance buyers.

While finalizing the deal, ensure to obtain estimates from multiple insurance providers to compare them. Here, first time home buyers may take help of brokers and agents to compare estimates.

Hence, before signing on a policy, first time home insurance buyers need to check the time of coverage, items covered, and premium amount required to be paid.

Bruce

January 8, 2011

Get Aided With First Time Home Buyer Grants

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 11:20 am
Kelsey Wilson asked:




Considering the period of recession, the first time home buyer grants have become extremely popular in the U.S. The federal government in the country has Homes and Communities program under the Department of Housing and Urban Development to help first time buyers. In addition, there are state wise programs and grants available for those looking to buy homes in different states.

First time home buyer grants are available for the low income residents. As obvious, the loan received through these grants is not paid back by the buyer. If you are also planning to buy your first home, here are some useful aspects of these grants.

Learn About Grants in Your State

First of all, it is important to learn whether your state provide home buyer grants or not. And if yes, then what is the nature of the program. For example, the state of Arkansas offer Down payment Assistance Program and the state of Kansas offer First Time Buyers Program. Some of the states, which don’t have home buying grant programs, provide home loans at low interest rate to the first time buyers.

Also, it is worth learning about any type of stipulations associated with these grants in different states. For example, in the state of California, the home owner is required to repay the grant, if he or she wishes to sell the house in future. Similarly, there are some states, where the buyer is not liable to sell the house purchased with the help of government grants before a period of 20 years.

Applying for Home Buyer Grants

You can visit the website of Department of Housing and Urban Development to apply for the federal Home Buyer Grant. Also, at least 48 states in the country have their individual websites, where one can apply for state level home buying grants. The eligibility conditions for these Grants are that the applicant must be a U.S. citizen and he or she should not already possess a home.

It is a matter of concern to write the perfect grant application to enhance your chances of getting the grant approved. You must know that there are hundreds of other applicants who would apply for first time Home Buyer grant. Federal and state governments have been participating efficiently to make the dream of first time home buyers true.

Willie

January 2, 2011

First Time Home Buyer Stimulus

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 7:39 pm
Kelly Kennedy asked:




Have you experienced buying your dream house with the money that you saved for years? This is the most crucial part of your financial history in case that you weren’t able to pay for it on time, it will reflect to all of your credit report especially for the first time buyer. There are no government programs before that can help you to get something in return in buying a home.

Today, if you purchased a home, you will be getting tax credit of $8,000 from the amount of the purchased home for a single taxpayer from “Making Work Pay” Tax Credit plan or it is also known as the American Recovery and Reinvestment Act of 2009. The tax credit is a big help for a person especially for someone who has a low income, having someone sick in the family, or disabled family members.

The American Recovery and Reinvestment Act of 2009 give assistance for the first time home buyer in down payment for the home, low mortgage interest rates and as well as the tax return after purchased of the house. However, not all first time buyers are eligible for this program.

This plan is applicable for the first time home buyers who purchased the house on or before April 9, 2008 until July 1, 2009. This will remove the property owner’s settlement requirement for people who bought the home after January 1, 2009 up to maximum of $8,000 until December 1, 2009.

The American Recovery and Reinvestment Act of 2009 is not only good for homeowners, but also good for real estate companies that will encourage more people to buy a new home to enter the mortgage market that offers low mortgage fees and keeping their dream home and its lessen risk to purchase a new home.

Corey

December 29, 2010

2008 Housing Stimulus Legislation – First Time Home Buyer Tax Credit

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 8:14 am
Karen List asked:




Who is Eligible

*The $7,500 tax credit is available for first-time home buyers only.
*The law defines a first-time home buyer as a buyer who has not owned a home during the past three years.
*All U.S. citizens who file taxes are eligible to participate in the program.

Who is not Eligible

*First Time Buyers using a state or local housing agency tax-exempt bond mortgage to finance the property.
*Non-resident aliens

Types of Homes that Qualify for the Tax Credit

*All homes, whether single-family, townhomes or condominiums will qualify.
* However, there are several conditions: (a) The home must be used as a principal residence, and
(b) The buyer has not owned a home in the prior three years.
*The Tax Credit includes newly-constructed homes.

Income Limits

*Home buyers who file as single or head-of-household taxpayers 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.
*Married couples filing jointly who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax credit.
*The credit is not available for single taxpayers whose AGI is greater than $95,000 and married couples filing jointly with an AGI that exceeds $170,000.

Effective Dates for the Tax Credit

First-time home buyers would receive a $7,500 tax credit for the purchase of any home on or after April 9, 2008 and before July 1, 2009. To qualify, you must actually close on the sale of the home during this period.

Tax Credit is Refundable

*A refundable credit means that if you pay less than $7,500 in federal income taxes, then the government will write you a check for the difference. (a) For example, if you owe $5,000 in federal income taxes, you would pay nothing to the IRS and receive a $2,500 payment from the government. (b) If you are due to receive a $1,000 tax refund from the government, your refund would grow to $8,500 ($1,000 plus $7,500 from the home buyer tax credit).
*If you purchased the home in 2008, the tax credit is taken on your 2008 tax return.
*If you buy in 2009, you have the option of taking the credit on your 2008 or 2009 tax returns.

Payback Provisions

*The tax credit is an interest-free loan that must be repaid over 15 years.
*The minimum repayment amount must be 15 equal annual installments. For example, if the credit amount is $7,500, then the home buyer must repay a minimum of $500 each year for 15 years.

ALSO: On July 30, 2008, President Bush signed into law a new housing reform bill designed to help stimulate the recovery of the housing industry.NOW is the time to take advantage of existing home buying assistance programs before they expire later this year.

Two important changes are:

1. All government-sponsored zero down payment assistance programs are eliminated as of October 1, 2008.To be eligible for these programs, all home loans would need to be approved by September 30, 2008.
2. The minimum down payment for Federal Housing Administration (FHA) loans, the largest purchaser of mortgages in the United States, would increase from 3 percent to 3.5 percent after October 1, 2008.

Veronica

December 18, 2010

Benefits For First Time Home Buyers

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 5:01 pm
Yanni A Raz asked:




Are you a first time home buyer in the market to purchase the home of your dreams? You may not be aware that there are many benefits in home purchasing as a first time buyer. The Government has been working together with first time home buyers, to help them save money and purchase something at a reasonable price, by giving them grants to be used toward the purchase of their first home.

A tax credit of up to $8000.00 is granted to first time buyers. This is all part of the Recovery and Reinvestment Act of 2009, something that will not only benefit first time home buyers, but will also help to stimulate the economy and get out of this recession. IN order to qualify for this offer, you must first make a purchase on or before January 1, 2009 and before December 1, 2009. The purchase date will be the date the house closes escrow.

Qualifying for the credit is simple. You are considered a first time buyer if you have not purchased a property 3-years prior to the date of purchase. Keep in mind, if you are married, and your significant other has in fact made owned a home in the last 3 years, neither of you will qualify for the credit. If an unmarried couple wants to take advantage of the tax credit, and one of them owned a home in the last 3 years, the one who has not owned will still qualify, the tax credit will then be transferred to the qualifying party.

The tax credit is based on 10 percent of the purchase price, but will not exceed $8000.00.

Qualifying for this benefit is also based on your income. Married couples should have a joint income of at least $150,000 with unmarried couples at an income of $75,000. Also keep in mind, that this tax credit does not have to be repaid. The tax credit is claimed on your Federal tax return form 5405, this will determine your tax credit amount, which you will then want to claim on your 1040 income tax form, line 67. If you have purchased a house in 2009, and received the tax credit toward your purchase, you can choose to claim it against your 2008 tax return or wait to claim it on your 2009 return. If you have filed your 2008 return prior to your purchase, you may amend the tax return if you do not want to wait until the 2009 tax season. This is something you would want to ask your tax professional about prior to making a decision. Also, the home that you purchase, must be used for your principle residence for at least 3-years, or the IRS may try and take the $8000.00 credit back from you. Vacation homes do not count as a principle place of residence.

This $8000.00 tax credit can be used towards your down payment. Again, something you would want to speak to your tax professional about. Time is running out for this great opportunity, so seek the proper advice and make the choice that is right for you.

Stella

December 4, 2010

First Time Home Buyers Tax Credit

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 9:40 pm
Gurmit Singh Toor asked:




First-time home buyers do not necessarily have to go through a real estate agent to receive the tax credit. Homes that are “for sale by owner” also are eligible. First-time home buyers who purchase a home in 2009 can claim the credit on a 2008 tax return, do April 15, 2009, or a 2009 tax return, do April 15, 2010. The credit may not be claimed before the closing date. First-time buyers can claim a credit worth $8,000. The bonus is that the credit is refundable, which means that filers will see a refund of the full $8,000, even if their total tax bill was less than that amount.

First-time home buyers purchasing any kind of home new or resale is eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009.

Taxpayers who qualify for the first-time home buyer credit and purchase a home this year (before Dec. This special feature can put money in first time buyers’ pockets right now rather than waiting another year to claim the tax credit. Taxpayers are urged to consult a professional to determine the tax consequences of a sale. Taxpayers buying a home who wishes to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

Taxpayers who file their taxes after receiving an extension can still file electronically, the IRS says. By e-filing and arranging for direct deposit, you can get your refund in as few as 10 days. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

File for the tax credit when preparing your 2009 federal tax documents by using Form 5405. You may also be eligible to claim your 2009 purchase on your 2008 tax filing. Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceed the phase-out limits.

FHA put up a mortgagee letter stating how the program was intended to work, and then took it down the same day. The details that were supposed to come out within the week didn’t come out. FHA has a list of approved lenders that can use the bridge loan type product.

Families can only access this credit after filing their tax returns with the IRS. The announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to ‘monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Families will now be able to apply their anticipated tax credit toward their home purchase right away.

Extend the time frame that the tax credit is, in effect, to somewhere near the end of 2010 depending on when the bill is passed (if it gets passed). The bill suggests that it be, in effect, for 1 year from its approval into law.

Owning a home can take a lot of time and expense but for many, its drawbacks are far more complicated than sticks, leaves, and paint. Owning a home can result in many tax advantages such as deducting mortgage interest and real estate taxes if you itemize deductions. The government’s recent attempts to stimulate our economy have included additional tax advantages for some first-time home buyers.

Ownership of non-primary residences such as rental properties or vacation homes does not disqualify a first-time home buyer from the $7500 tax credit. All you have to do is claim the tax credit on your federal income tax return.

Thank you for taking your time to read this article. Your comments on this article will be highly appreciated. To access hundreds of Gurmit’s articles, please visit his websites below.

Information shared here does not constitute financial, legal, or other professional advice, and no attorney-client or confidential relationship is or should be formed by use of the site. This article is intended to provide general information only and does not give advice, which relates to your specific individual circumstances. Information in this document is subject to change without notice. Any link-listing or ad-listing on this site does not constitute any type of endorsement.

Cathy
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