first time home buyer – owner loan

November 12, 2009

Government grants for first time home buyers

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 4:41 am
Cornell Talley asked:


Perhaps, one among the most complex challenges folks face is purchasing the 1st home. With the deposit, closing cost along with the rental cost for the house they are living, it is actually difficult to face all these heavy financial loads. If you already own a house and choosing to buy another home, you certainly would have got place to live in or you get serious rent thru it. But purchasing a first home doesn’t have any such option. Hence the both federal as well as the state government are ready to provide government grants for first time home buyers, to relieve a bit from their cost-effective burden.

Countless americans who would like to own a home find it unrealistic to make satisfactory savings for their dream house, after allotting so many budgets for monthly hire, food, insurance, children schooling, clothing, utility bills and so on. If you are one among them, keep studying this piece to understand the government grants for first time house buyer.

To have first home ownership, you can make an application for the government grants for first time home buyers, but you can’t expect the govt to cover all of the expenses that happen in purchasing a home. You can consider it for closing costs or other such costs. The needy ones have to attend analysis class conducted by HUD.

Government grants for first time home buyers act as a monetary backup and are completely unfettered by any taxes and further, they don’t seem to be considered to be responsibility. The presidency grants do not expect repayment. Thus, the individual that gets this grant need not fret about the repaying procedures.

Usually, the salary of an individual is regarded for suitability. Likewise, the person should have the same level of income during the past 3 years, without any earlier ownership of a house and should not be paying interest to any other mortgage. Just like other presidency grants, government grants for first time home buyers too are not in public announced and many are blind to the specs related to this grant.

If you feel that you are qualified for the government grants for first time home buyers, know the cutoff date to submit the application. You will be asked to give some tax, credit details associated to you and your partner. Tax payers and couples should have the minimum income of 75,000 $ to 150,000 greenbacks. Include all of the required info and applicable documents, along with the application, as when you miss out even a single document, you can’t avail the government grants for first time home buyers.



Josephine

November 1, 2009

A Dream Come True for the First Time Home Buyer

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 3:49 am
Bryan Hendersen asked:


needs a place to call home and for many that dream involves purchasing a home. This is generally the most significant purchase you will make in your lifetime and some people buy a home and live there for their entire life. Whether you are buying your home for yourself alone or for your family, the First Time Home Buyer Stimulus Programs may help you realize your dream.

Interestingly, this government program, though created specifically for the first time home buyer, can actually be used by those who have not enjoyed home ownership in at least the last three years. If you meet this criterion you are eligible to apply for one of the First Time Home Buyer Stimulus Programs enacted by congress in both 2008 and 2009.

Because of the significance of a home purchase, a smooth transaction is desirable on many levels. When you dream about your ideal home you may imagine that it will be located near your work, within walking distance of your kids’ school, or on a lakefront with a mountain view. Whatever your ideal home resembles, you will want to take the time to look for residences that meet your needs. This can be time consuming but enjoyable. So many decisions must be made that you need to give yourself ample time so you don’t end up feeling like you settled for less than what you wanted. Try to imagine the type of home you want ? one that’s large enough to accommodate you and your family, that is convenient, and that is move-in ready. Then visualize your home with your furniture in place, what things you might need to purchase, what changes you might want to make, and whether you will have enough storage space. Enjoy yourself because this is the easy part compared to the serious financial considerations that will follow.

Knowing your price range in advance will keep you from looking at homes that fall far below or far above what you can afford. How much down payment can you make and what will your taxes be? Do you have any outstanding debts? If so, pay them so they won’t adversely affect your credit score. This will make it easier to secure a loan.

You can get more information from local lending resources. All mortgage lenders know about the federal programs that came about because of the current economic crisis, and they can guide you as a first time home buyer to secure the financial assistance you need. There are some major benefits involved with these programs ? lowered interest rates, tax credits, and assistance with a down payment. Significantly lower interest rates may be available for disabled home buyers or those who are on a low or fixed income.

The First Time Home Buyer Stimulus Programs are being made available as a way to assist first time home buyers, encouraging them and helping them find ways to purchase a first home. This helps not only the new homeowner but has the positive side effect of stimulating the economy while assisting in the purchase of new or existing homes.

Javier

August 6, 2009

Federal Government’s Incentive Program to First Time Home Buyers – Obama’s Stimulus Package

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 4:20 am
Bryan Hendersen asked:


y believe that over-extended first time home buyers played a large role in creating the current economic crisis, the Federal Government nonetheless is trying to woo even more new home buyers with their current stimulus package. Afraid you can’t afford to buy a house? Worried you won’t qualify for a loan? Never fear ? the government will come to your rescue with its ‘First Time Home Buyer Stimulus Package,’ which is being targeted to both first time buyers and those who have not owned a home for at least three years.

Owning your own home remains the American dream. That’s the philosophy behind this program, which includes both pre-owned and newly constructed homes. If successful, it could reduce the current inventory of unsold homes, replenish construction industry coffers and put some unemployed builders back to work. There are three components of the program:

1. Tax credits

2. Down payments funding

3. Lower interest rates

The first stimulus programs were instituted in 2008 at the beginning of the economic downturn. As these programs were found to be insufficient, the government unveiled additional incentives to spur home ownership. The goal was to reinvigorate the real-estate market at a time when people must overcome their fear of spending and of home foreclosure.

A 10% tax credit is available to those who purchase a home between January 1, 2009 and December 31, 2009. Depending on purchase price, this credit may be up to $8000. The credit must be claimed within two years of buying the home. The tax credit might be used to offset the property taxes and to recover some of the downpayment, which is often a barrier to home ownership.

Speaking of down payments, the second incentive introduces the possibility of having to raise a smaller sum. A typical down payment amount is 10% of the sales price — $20,000 on a $200,000 house. If you don’t need to put down so much, the government hopes you’ll spend that savings on home improvements or other investments. They might also offer you a loan with lower points, resulting in lower closing costs or a lower monthly mortgage. This program is restricted to individuals earning up to $75,000, or couples earning up to $150,000.

A final alternative being offered is a tax rebate on the loan’s interest. This is different from a tax credit. Investment property owners are also eligible to take advantage of the tax rebate for expenses that are considered part of the property’s maintenance and therefore an income tax deduction.

The government foresees many positive benefits from the First Time Home Buyer Stimulus programs. Beyond helping people to become homeowners, it is viewed as a way to revitalize the economy, and keep our head up in the eyes of the world.

Jessica

August 5, 2009

Free Money In Florida for First Time Home Buyers – Understanding the SHIP Loan Program

Filed under: Loans — Tags: , , , , , , , , , , , , , , — admin @ 1:47 pm
Suzie O’Connor asked:


Understand the S.H.I.P. Loan Program for First Time Home Buyers

While the economy has been tough for the housing market, new homeowners may have had the toughest time. In most parts of the country, the housing supply and reduced prices made purchasing a new home now a good idea. Unfortunately, many lenders also started cracking down on their lending practices. They required higher income levels, increased the interest rates, and started asking for larger down payments. People from lower income backgrounds found it increasingly challenge. In Florida, however, a no money downpayment loan for first time home buyers is making things easier.

Background on the Program

This no money downpayment loan for first time home buyers is available through a program known as S.H.I.P which stands for State Housing Initiative Partnership. The program is available in every county in Florida. Each county receives state funds which they, in turn, use to promote home ownership in their area, particularly among those with the lowest income and the greatest need for financial assistance. However, these government assisted home loans are not just given to everyone. Individuals do need to meet specific requirements.

The Down Payment Assistance Program

Buyers must meet certain qualifications if they are going to receive the no money downpayment loan for time time home buyers. Because the program is for low income families, the household income must not equal more than 120% of the AMI (Area Median Income). Because the AMI varies greatly between Florida counties, this is the most effective way of setting income limits for the program. To prevent buyers from moving into counties where they will be eligible, a one year residency requirement in that county is required as well.

Additionally, buyers are asked to secure the mortgage financing and to complete an education seminar provided free through the S.H.I.P program that educates them on the facts about purchasing a home for the first time. Individuals must also contribute either 1% of the total home?s sale price of $1,000 to the purchase as a sign of commitment to honor this partnership.

The buyer isn?t the only one who must meet specific qualification requirements to receive government assisted home loans. The property must also qualify. Obviously, it must be located in the same county. However, the sale price cannot be higher than $219,000 to qualify. That makes sense because the maximum assistance provided is $35,000. The total amount homeowners will be eligible for depends on their household income. Another requirement is that the combination of the two loans must not be more than 105% of the home?s appraised value ? this rule is to protect the home buyer from paying too much for a property.

Reasons for Refusal

Following May 2008, a few additional requirements were added to the program to ensure the funds were being used to assist the most eligible individuals. The credit score requirement of 620 was added. However, individuals with lower credit scores can be eligible if they do not have any garnishments, past due revolving accounts, a bankruptcy in the last two years, or past due rent within the last 12 months. Applicants with credit scores below 620 are approved at the discretion of the program, and those are just some of the examples which could disqualify a prospective home buyer.

The Benefits of the Program

The no money downpayment loan for first time home buyers is made to the owners at the time of their closing on the property. While called a loan, it doesn?t work as a loan. Instead, they carry a 0% interest rate so the amount needed for the down payment and borrowed will not increase. Additionally, the loan will be completely forgiven if the homeowners are still in it fifteen years later.

Obviously, this has a tremendous positive impact on low-income families who want to purchase their first home but who may find saving up a 10% or down payment to be nearly impossible. After all, a 10% down payment for a $100,000 home would be $10,000 which is a lot of money for anyone to save up.

By forgiving the loan after fifteen years, the program uses these government assisted home loans to encourage people to buy a home, take care of the home, and live in it. After all, purchasing a home is usually a solid investment, even despite the recent slump in the market.

For potential home owners who meet the program?s requirements, it can provide a wonderful opportunity they may not have otherwise had.



Norma

July 31, 2009

First Time Home Buyer Loans – Joyful Beginnings

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 4:42 am
Adam Hefner asked:


During much of America’s history only the wealthy could afford home ownership. It was always referred to as the “American dream”. Today it has more transitioned from a dream or fantasy to an expectation. Home ownership is viewed by many as a given part of American life. What caused this evolution? It mainly was the availability of first time home buyer loans made possible by the Federal Housing Administration (FHA).

Prior to FHA loans lending standards were strict for all mortgages. For a brief window recently, many lenders greatly relaxed these underwriting standards. The result is seen in today’s headlines discussing waves of defaults and foreclosures. This has caused lending standards to quickly tighten again going back to what they used to be.

Lending standards relate to several aspects in which the borrower is reviewed. The first of these is a requisite minimum credit score. Unfortunately, many new buyers are too young to have established extensive credit. This served to keep this segment of would be buyers out of the home ownership universe.

FHA loans sought to address this by providing for a secondary market for loans without the required credit history. This opens the door to owning a home to many young families who otherwise would have had to wait years while developing sufficient credit history. Mortgages also traditionally required a 20% down payment.

Even for a modest $125,000 home this equates to $25,000. Many first time buyers did not have this amount saved yet. Requiring a full 20% down payment further delaying many first time purchases. FHA loans also address this problem. With an FHA backed loan the borrower does not have to come up with the full twenty percent at closing.

FHA loans only require 3% down payments. That $125,000 home can now be purchased with a down payment of $3750 putting it well within the reach of most anyone who desires it. Also reduced are closing costs and points. These are fees typically charged to the borrower and payable in full at closing. These fees each tend to be small but can add up quickly.

FHA loans allow for these fees to be cut in half. Furthermore, the portion still owed by the borrower can be paid over the life of the mortgage, most usually 30 years. This often translates to another few dollars a month on top of the normal payment. This again removes a former obstacle to first time buyers.

First time home buyer loans backed by the FHA are a wonderful creation for those just starting out and desiring to own their home. There are more details and requirements to be eligible for an FHA backed loan. Do the research to find out if you can benefit from this great program.



Stanley

May 18, 2009

First Time Home Buyer Tips

Filed under: Advice — Tags: , , , , , , , , , , , , , , — admin @ 7:04 am
Ken Black asked:


For the first time home buyer, buying your first home is one of the most exciting things you will ever do. If you have spent years living in apartments, there is nothing more satisfying than owning your own property. The process can be a little lengthy and you might hit a few bumps in the road to home ownership. The following tips will help the first time homeowner avoid some of the hiccups.

Step one is to talk to a real estate agent about the home buying process. It should not be a sales meeting and you should be able to find an agent that will agree to meet with you about the basics without having to sign a sales agreement with them. If you cannot find a good agent to talk to, you might want to consider talking to a loan officer at your bank or a mortgage broker.

An equally important tip is to get your finances in order before you apply for a mortgage. Order a copy of your credit report so you can check it for accuracy. Mistakes are common and you want to make sure that there is no fraudulent activity. You have the right to dispute errors on your credit report. If you come across something that you know is an error, circle it and send it to the reporting agency along with a letter of dispute.

Next, you should really study the mortgage industry. You need to be able to find the right loan and lender most suitable for your needs. Familiarize yourself with industry terms like debt to income ratio and adjustable rate mortgage. Learn the difference between pre-approval and pre-qualified. It will all seem foreign at first, but taking the time to learn the business will spare you from headaches in the future.

Also, you need to figure out what your wants and needs are. What kinds of amenities are you looking for? How many bedrooms? One story or two story home? You also need to consider the size of the down payment and figure out what you need to do to come up with the money for it.

You must learn about how real estate agents work. There are buyers agents and sellers agents. A buyers agents responsibility is to negotiate the best deal for the buyer. The goal of the sellers agent is to get the price that the seller most desires. The best way to find the right agent is to ask your friends for suggestions. They have all probably been in the same boat, so they can probably recommend a good real estate agent.

When meeting with a potential agent, pay attention to how they treat you. Make sure they listen to you when you talk about what you want. Also, how are their follow up skills? Do they take the time to return your calls or emails? If they do not take the time to respond, move on. There is a better agent out there for you.

When looking for a home, consider all of the possibilities. Look up real estate agents websites. Do not rule out For Sale by Owner Properties and foreclosed homes. Housing and Urban Development (HUD) homes can often be found for very reasonable prices. You do need to find an agent that is approved to sell HUD homes if you choose to take that road to home ownership.

Before you even think about making an offer, you need to consider the resale value. You might plan on being there for a long time, but you just never know. You might opt for a different climate to alleviate your allergies or you could simply be transferred by your company. You want to pick a good location that will be attractive to others as well.

Another issue that cannot be ignored are the deed restrictions, which govern what you can and cannot do with the property. If it has always been your dream to have a pool, you want to make sure that you do not buy a home in a subdivision that will not allow it because of deed restrictions.

Home inspections are an important part of the equation. Talk to your agent to find out when the inspection will be performed. It varies state to state. Sometimes the inspection will be right before the contract is signed and other times, they are performed right after an offer is made.

Finally, make sure you stay on top of things. Any number of problems can crop up at the last minute and delay the purchase of your home. If you are not sure about something with the paperwork, do not be afraid to ask questions. You might think of something that everyone else has overlooked.

Purchasing a home is a time consuming and sometimes frustrating task, but it is worth it when you have your backyard barbeques.



Arnold
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