first time home buyer – owner loan

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

July 16, 2009

First-Time Home Buyers: Housing

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 10:33 pm
Melanie Broemsen asked:


As a potential first- time home buyer, the volatility of housing market could seem intimidating. According to National Public Radio, the number of foreclosures increased 32 percent in April 2009 when compared to the same month in 2008. Despite the turmoil, however, there are many good reasons why now may be just the right time to buy your first home. In fact, industry experts suggest that today’s consumers are experiencing the best buyer’s market of the century.

What does that mean for a potential home buyer?

For starters, homes are more affordable today, and there is a larger inventory from which to choose. Mortgage interest rates have dropped significantly, and developers are offering major discounts for those choosing to build a new home.

In addition, there are great tax incentives. To attract potential buyers and stimulate the distressed housing market, the U.S. government implemented new tax incentives this year that could pay you up to $8,000 when you a buy a new home. Unlike the 2008 tax credit that must be repaid, this new program provides first-time home buyers with a dollar-for-dollar reduction in the taxes they owe.

Understanding the 2009 First-Time Home Buyers Tax Credit

The American Recovery and Reinvestment Act of 2009 is an economic stimulus package. One of the provisions of this new legislation expanded last year’s first-time home buyer’s tax credit. This year, eligible first-time home buyers will receive a fully refundable income tax credit equal to 10 percent of a new home’s price, up to a maximum to $8,000.

How the tax credit works – Simply subtract the $8,000 (or amount of your credit) from the amount you owe the Internal Revenue Service (IRS). For example, if you owe $10,000 in taxes, then you would only be responsible for paying $2,000. If you owe $1,000, you would receive $7,000 from the IRS as a refund. As long as you keep the home for three years, the tax credit does not need repaid.

How to qualify – You must be a first-time home buyer buying your primary home between Jan. 1, 2009, and Dec. 1, 2009. A first-time home buyer is defined as someone who has not owned a principal residence in the three years prior to the purchase. If you are married, this previous home ownership rule will apply to you and your spouse. Vacation rental homes and rental properties are excluded from consideration. In addition, if you own a home, but buy a home with someone who qualifies as a first- time home buyer, such as son or daughter, you may be able to assign the tax credit to them.

How to use the tax credit – There are many ways to take advantage of the 2009 first-time home buyer’ tax credit. According to Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, the Federal Housing Administration (FHA) is allowing first-time home buyers to use the tax credit as a down payment. This is great news for potential first-time home buyers, who may be reluctant to part with their savings and commit to a mortgage because of uncertainties in the economy. Another alternative allows potential first-time home buyers to reduce their income tax withholding. This increases their net paycheck and enables them to save for a down payment more quickly. Finally, first-time home buyers can choose to either apply the tax credit to their 2009 federal income tax, or submit an amended form to apply the credit to their 2008 taxes.

The fine print – The 2009 first-time home buyer’s credit has some stipulations. For example, the income limit for single taxpayers is $75,000, or $150,000 for married couples filing a joint return. Taxpayers within $20,000 of the maximum limit can qualify for a partial credit based on a sliding scale. The tax credit reduces to zero for taxpayers with an income $20,000 or more over the limit. In addition, the 2009 tax credit only applies to new home loans that are 30-year fixed rate mortgages. Other limitations may apply. For more details, visit FederalHousingTaxCredit.com or IRS.gov.

Due to the benefits of the new 2009 tax credit, as well the favorable market conditions, the time may be just right to buy your first home. For more information about new home mortgages, and to find out if you qualify, visit nationwidebank.com.



Eddie

March 17, 2009

It’s a Real Estate Boom for First Time Home Buyers

Filed under: Home And Family — Tags: , , , , , , , , , , , , , , — admin @ 6:45 am
Roy Landers asked:


The subprime mortgage real estate fiasco has created a glut of residential real estate in the real estate market. Foreclosures are on the rise and it doesn’t look like the end is in sight for at least another year. Thousands of home owners are losing their homes because adjustable mortgage rates have adjusted upward and caused increases of monthly mortgage payments so high that the affected home owners just can’t make the payments. It is inevitable, under these circumstances that many homes go into foreclosure and banks have to take them back.

While it is unfortunate that many home owners are losing their homes, the opposite and upside effect is that the real estate market is now a boom for the first time home buyer.

Mortgage interest rates are still low and banks and real estate lending institutions have 30-40 year fixed loans for home buyers. With home values in many areas around the country, such as California, plummeting anywhere from 30-50 percent of what they were a year ago, the market is wide open for buyers who have never owed a home and would like to do so now.

Lending institutions and sellers are very motivated now and are readily lending their ears to home buyers saying “lets make a deal” and deal they will. Here are some of the innovative and sensible ways home buyers can now acquire a home of their own when they are armed with some real estate homebuyer education.

1. Use government grants and loans for down payment assistance.

The federal government in 2003 established the American Dream Down Payment Act. This federal law has allocated $200 Million a year since 2003 to assist with arranging down payments for first time home buyers. This is a good indication of just how serious the government is about helping Americans make the American dream of home ownership come true.

Fannie Mae, one of the many federally supported programs for home buyers has programs such as the MyCommunity Fixed Rate Mortgage. This unique program is ideally suited for the first time home buyer. It provides for low down payment, high loan to value with broad flexibility, including nontraditional credit considerations allowing for the buyer to qualify for the loan. It also has special financial options to serve public servant professions such as teachers, police officers, firefighters and health care workers, and people with disabilities.100% financing is available with 30-40 year fixed rates. Check out the details at http://www.efannie.com.

These funds, in addition to other government funding sources, are made available through federal, state and local government agencies that provide down payment assistance to their citizens on a case by case basis.

Every major city and county has one of these programs. One need only exercise a little initiative and these funds can be acquired. Contact your local housing authority, city managers office or county administration department to find out about them and how to apply.

2. Use non-profit agency down payment assistance

Another little known, but long existing opportunity for first time home buyers to acquire help with down payment assistance is the numerous numbers of non-profit agencies around the country that provide free down payment assistance to home buyers. The Community Reinvestment Act of 1977, enacted by Congress in 1977 and revised in 1995, requires banks located within identified communities to make loans and reinvest the depositors’ deposits within that community.

For decades now and continuing into the future banks have been making huge amounts of funds available to invest in targeted communities. However, the availability of the funds was not publicized in a significant way and many people did not and still do not know about these funds. Many non-profit agencies became aware that they could help in the community revitalization effort by creating a means whereby the banks could channel the funds through various home assistance programs that non-profits created. The non-profits that specialize in this type of program have grown over the years. Some are very large and are nation wide such as the Nehemiah Corporation – www.nehemiahcorp.org.

They get funding from the banks via the Community Reinvestment Act and other funding sources and then provide for down payment assistance and other housing assistance to persons desiring to own a home.

One of the high points of these programs is that the funding is often times not limited to first time home buyers and certainly is not limited to only low income home buyers. This creates yet another source of down payment assistance for the prospective home buyer. Given the numerous avenues of funding to assist in buying a home and the present market swing in favor of home buyers, buyers are now firmly in the driver’s seat.



Kim

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