first time home buyer – owner loan

January 31, 2011

First Time Home Buyer Grants – An Overview

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 1:01 am
Guilherme J Pinto asked:




First time home buyer grants are now available through The American Dream Down Payment Act. This is now possible for first time home buyers to benefit from the $200 million grant aid provided to this Act in the low income group. This serves as very good news for a lot of people who envied homeowners with the thought of never being able to own their own home due to the inability to come up with enough cash to buy their own home.

These first time home buyer grants is a joint program between the government and banks to enable people to raise the initial down payment in order to be able to buy their first home.

The value of undertaking of this nature is easy overlooked. It stretches far beyond just making individuals happy by making buying their firs home possible. First time home buyer grants uplift the economy of the country and have tremendous effects on socio economic factors.

In the unhappy event where your credit score is not all that good, you can still be eligible for the first time home buyer grants, provided that you did not owned a house in your name the past 3 years at least. For a change how little you earn and not how much you earn will be to your advantage. It is required that your combined family income does not exceed the fixed minimum income amount.

Another deciding factor will be where you want to buy your home. Your personal circumstances play a considerable rol in this matter. The average combined income of your family and the number of dependants that is contained in your family create deciding factors.

It is not sensible for you to buy a house in a low income neighbourhood with 2 bedrooms and one large open-plan family room and kitchen combination if you and your spouse are responsible for taking care of your parents living with you and you have 4 children. When assessing these first time home buyer grants applications, the reviewers take into consideration that you will need at least a 4 to 5 bedroom house which you are more likely to find in a higher income group neighbourhood. With in other words, if you have more dependants, it will be taken into consideration if you have a higher income when applying for the first time home buyers grant.

This first time home buyers grants is also referred to as free money from the government. The reason being simple because no interest is charged and there are no monthly payments. These funds remain in the background unless the house is sold or the government pardons the grant.

Charlie

January 23, 2011

Obama’s First Time Home Buyer Stimulus Program – A Recession-Proof Plan to Help You Out

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 4:37 pm
Timothy Croy asked:




The recession of 2008 started an economic decline that required governmental intervention. The fix came in the form of various stimulus programs that were signed into being by President Obama in an effort to stem the tide of fear among our citizens. People facing monetary difficulties tightened their belts to ride out what was hoped to be a temporary storm but fear kept them from spending money because they couldn’t face the possible losses that were inevitable.

Home ownership has suffered significantly as a result of the sudden loss of consumer confidence in our government’s ability to repair what went wrong. After taking on shaky home loans with high interest rates, many people lost their homes to foreclosure, leaving them bereft of money and soul, their dreams gone in the process. The First Time Home Buyer stimulus programs that came to the forefront a few short months ago are intended to solve several problems. First, it will help people reconnect with their dreams of home ownership by encouraging them with lower interest rates.

Purchasing a home for the first time carries with it many emotions and concerns. Often people who sign a contract have feelings of remorse, almost a grief process that must be gotten through. This comes because when purchasing something that is so significant there is always the possibility that you are making a mistake. This is probably one of the reasons people who are financially capable of buying a home choose to stay in temporary quarters. The escape factor is always there for them if things go wrong, as they often do.

If home ownership is something you aspire to, the stimulus program for first time home buyers is well worth pursuing. Purchasing a home under these circumstances has never been easier as the government has put plans in place that will give you the most bang for your buck. The incentives being offered are lower interest rates, lower down payments, and fixed and reasonable payments.

The upside of obtaining a home loan using the First Time Home Buyer Stimulus Program is that you will finally have more money in your pocket. Going on vacation, eating out, going to a movie, having a party – all will once again be within your reach. And as you go about your daily activities you will be providing jobs for the people who serve you. Saving for larger expenditures will also be a possibility and it won’t take forever to accumulate enough to make that purchase. This, too, will support an ailing economy.

As you consider your options when you buy a home, remember these programs that have been made available to you and don’t be afraid to take that risk. You have absolutely nothing to lose and everything to gain. You take no risks if you just apply for a loan through the stimulus programs.

Tamara

January 18, 2011

Eliminating First Time Home Buyer Fear

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 12:57 pm
Tranett Walker asked:




A first time home buyer may be terrified just thinking about the home-buying process…where to go, who to choose, can I afford it…how to get started. Homebuyer Classroom has identified some of the sources that cause fear and will share with you how to dissect this fear and keep moving forward with the home-buying process.

ONE:

There is no “perfect” time to buy, any more than there is a right time to sell. If you find a new home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes don’t usually occur fast enough to make that much difference in price, and remember a good home won’t STAY ON THE MARKET LONG.

SIDEBAR:

“FOR SALE” signs in yards DO NOT guarantee that those homes are still available. Often times, real estate signs will remain in the yard until the home has officially “closed” and is off the market. This happens primarily because deals fall through (do not work out) and the home has to be put back on the market, after being taken off for that buyer. If you work with a Real Estate Agent you will be able to verify the true status of the property at all times. If the deal falls through and you’re working with an agent s/he can notify you immediately that the home is now back on the market. Find a Real Estate Agent today!

TWO:

Don’t try to be a “killer” negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price may lose you the home you love.

SIDEBAR:

If you are bidding on a highly desirable home, you want to make sure your offer is attractive, stands out and gets the sellers acceptance!

Always start by making an offer “lower” than the asking price for the home, but be careful not to “low ball.” Often times first time home buyers think that if the seller “really” wants to sell they’ll accept their offer. That is “improper” thinking. Sellers’ have a choice in the offer they’ll accept just as you have the choice in the home you’ll purchase.

If you love the home and feel that it is the “perfect fit” for you and/or your family negotiate appropriately, fairly and wisely. Why miss out on the right home because you keep going back and forth with the seller over $1,500? Besides, $1,500 divided by 30 years (360 months) is a mere $4.16 cents more per month. Don’t lose your dream home over dollars and cents!

THREE:

Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

SIDEBAR:

Before you make an offer on a home have your business in order! Make sure you have a pre-approval letter, know how soon you can move (closing on a home usually takes 30 days from the date your offer is accepted). Therefore, you have to wrap up loose ends at your current residence. Sellers don’t like to have contingencies (i.e. stipulations) in the contract. For example, you can’t close on the property until 90 days from the date of the accepted contract.

Remember there are other buyers in line looking at the same houses you may be considering. Be prepared. Be ready to play ball. Handle your business to help ensure a smooth transition.

FOUR:

Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.

SIDEBAR:
It would be wise to have an emergency fund set aside for repairs and maintenance in your new home. Trust and believe things will happen in your new home. Unlike renting, there is no one to call at the leasing office to fix the toilet. Keep in mind that these responsibilities are now those of the first time home buyer.

But, don’t be discouraged, because the benefits you receive as a first time home buyer FAR outweighs home maintenance. Remember, this is “your” valuable investment.

FIVE:

Accept that a little buyer’s remorse is inevitable and will usually pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits!

SIDEBAR:

This one perhaps is one of the most important. Once you commit to one home (especially after looking at over 20) you’ll wonder if you chose the right one. You’ll wonder if you should have waited until next year and so on and so on. Understand that this feeling is common among the majority of buyers. Once you’ve chosen your home begin to settle, relax and start to visualize you and/or your family living in your new home. Those feelings of remorse tend to drift away.

Alan

January 15, 2011

First Time Home Buyer Tax Rebate Extension

Filed under: Real Estate — Tags: , , , , , , , , , , , , , , — admin @ 3:29 am
Jim Ingersoll asked:




Nearly 1.5 Million people have taken advantage of the $8,000 tax rebate since it’s conception in January 2009. The tax credit has been available to all first time home buyers. The first time home buyer is defined as anyone who has now owned their own home for three consecutive years. Oh, one more criteria for eligibility… It must be for your primary residence which is unfortunate for investors. The credit is in the form of a tax rebate for 10% of the purchase price of the home, up to a total of $8,000. One of the great benefits of the tax rebate is that is FULLY refundable to the buyer. For instance if the first time home buyer owed no taxes on their taxes, then the first time home buyer can amend their tax return and capture the full $8,000.

The tax rebate has helped improve the national home sales. The current tax rebate is set to expire on November 30, 2009. This means that the purchase must be fully closed and completed in order to qualify. It typically takes approximately 30 days to close on a home transaction with conventional bank financing. The point is that in order to be confident your purchase will qualify you should plan to be under contract to purchase your home by November 1, 2009. If you are trying to capture the $8,000 tax rebate and have not yet put your home under contract or you dont qualify for conventional financing then you need to consider finding an alternate approach. One alternate approach is to find seller financing. If the seller is providing the financing and you do not need to wait the typical 30 days for bank financing, then you can still close by December 1, 2009 without many challenges.

What about the possibility of extending the rebate past December 1, 2009? There are currently several bills in Congress that would allow the extension. Each of the bills in Congress provide alternate solutions toward the extension. Of course there is a lot of politics involved in completing the extension, from all poitical parties. Here is a brief summary of the extensions:

S1230: Senator Johnny Isakson introduced Senate Bill 1230 in June. The Bill proposes a tax credit up to $15,000 that can be split over 2 year for everyone who purchases a home for their personal residence.

HR 2619: This one proposes to extend the existing $8,000 tax credit to July 1, 2010 and adds provisions for a tax credit of up to $3,000 for homeowners who refinance. This would certainly create a ton of refinances. Is this part of the recent mortgage issue? Many Americans seem to use their home equity as an ATM machine, pulling it out and spending it. I guess that would potentially help spur the ecomony in the short term.

HR 2801 – Similar to S1230 but it extends benefits to January 1, 2011.

Several key politicians are publicly making comments about getting the extension approved by early November. Those making positive comments include Senator Bill Nelson of Florida, Senate Majority Leader Harry Reid and Senate Finance Committee Chairman Max Baucus. They are hoping to extend the rebate along with unemployment benefits at the same time.

One thing for sure is our current Government is committed to spending an unlimited amount to try and stimulate our economy. Our Leaders appear to be committed to short term gains at the expense of future generations. That said, extending the first time home buyer credit will certainly help encourage American’s to own their own home.

Lucille

January 7, 2011

First Time Home Buyer Tax Credit – 30 year Fixed FHA Financing – RealEstateMarketingThisWeek.com

Filed under: News — Tags: , , , , , , , , , , , , , , — admin @ 11:41 am
REMarketingThisWeek asked:


realestatemarketingthisweek.com – 30 year fixed FHA mortgage is the best financing available for first time home buyers today. – Part 8 – So now the only question that I would have, Michael is you only lowered the guys interest rate by 1/8th of a percent, weren’t there a whole lot of closing costs associated with that? Good question, in this particular case no. There were no closing costs. Well then it definitely makes sense to lower your interest rate if it’s not going to cost you anything and you can lower your monthly payment by 100 bucks a month you would be crazy not to do it. His breakeven was one day, in that particular case. It goes back to this Velocity of Money concept. If you’re not sure if it makes sense or not, it’s kind of a no-brainer, give the team at velocity financial a call. You will do the analysis for them to determine if it makes sense or not based, on their unique circumstance, and from there youll advise them on the appropriate type of loan. You know it’s funny that people over the years they get so hyper-focused on the interest rate of the loan. Interestingly enough I had a recent client whos focus was not on the interest rate, it was on the closing costs. The problem is there is a correlation between the cost of the money and rate, you have to pay it isn’t free for anyone. No cost loans are not really no cost, youre paying a higher rate to get it, so where does it make the most sense for you and your family, how long are you going to use this …

Tamara

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
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