for
FIRST TIME HOME BUYERS
- Federal Down Payment Assistance Programs - Down Payment Grants - No Down Payment Mortgages
Copyright 2008. American Housing Assistance Network. All rights reserved.
There are also Home Mortgages available with No Down Payment required. Zero Down Loans are hard to find but in 2003 the Federal Government created the American Dream Down Payment Assistance Program to help First Time Home Buyers.
The fun part of buying your home is finding the perfect house. There are several ways to find great deals on homes in your area. Working with a Professional Realtor in your area is always the best and safest way - we highly recommend it. Find and compare top, affordable listing agents
However, you can sometimes save a little money buying a home that is FOR SALE BY OWNER. Use this directory to locate FSBO's in your area.
National Real Estate Listings without the Commissions!
Or if you are good with your hands and do not mind doing some work, the FORECLOSURE market is a great way to save money buying your first house.
Foreclosure Deals
If you have some concerns about your credit score - there are several options to help improve your
FICO scores.
Get Your Free 3-in-1 Credit Report
IMPORTANT NEWS UPDATE
ABOUT THE
FEDERAL HOUSING CREDIT!
Senate approves $8,000 tax credit for homebuyers.....
WASHINGTON (AP) — The Senate voted Wednesday night to give a tax break of up to $8,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan. The tax break was adopted without dissent, and came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider scaling back spending."Let's not make the perfect the enemy of the essential," Obama said as Senate Republicans stepped up their criticism of the bill's spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly "will turn crisis into a catastrophe and guarantee a longer recession."
Democratic leaders have pledged to have legislation ready for Obama's signature by the end of next week, and they concede privately they will have to accept some spending reductions along the way.
Sen. Johnny Isakson, R-Ga., who advanced the homebuyers tax break, said it was intended to help revive the housing industry, which has virtually collapsed in the wake of a credit crisis that began last fall.
The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $8,000 limit. Current law provides for a $7,500 tax break for the purchase of new homes only... CONTINUE
2008 Housing Economic Recovery Act
Recently Congress passed landmark legislation by way of the Housing and Economic Recovery Act of 2008. The centerpiece of this legislation is a tax credit of up to $7,500.00 for first time homebuyers. A first time homebuyer is defined by the law as a homebuyer that has not owned a principle residence during the three year period prior to purchase. Married couples must both meet the first time homebuyer criteria to be eligible for the tax credit.
The tax credit is available on homes settled after April 9, 2008 and before July 1, 2009. Any single family detached home, townhouse, or condominium home will qualify so long as it will be used as the primary residence of the buyer. To be eligible, first time homebuyers need to have a Modified Adjusted Gross Income of $75,000.00 or less for individuals, or $150,000.00 or less for married taxpayers. Those exceeding these limits may be eligible for a lesser tax credit.
The tax credit is refundable which means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. For example, if a taxpayer owed tax liability of $1,000.00 without the credit, they could expect a refund of $6,500.00 after the credit was applied presuming they qualified for the full amount.
For homes purchased in the 2009 calendar year, homebuyers will have a choice as to whether to apply the credit to their 2008 or 2009 tax returns. Your tax consultant should be consulted to help you determine which year would be more advantageous.
Homebuyers should be aware that the tax credit must be repaid to the government over the course of 15 years, or when they sell the home if there are sufficient capital gains from the sale. There is no interest on the credit so in that way the tax credit acts as more of a zero-interest loan. Additionally, homebuyers are not required to begin paying back the credit for two years after the tax credit is claimed. After those two years, $500.00 per year would be paid back, presuming a full $7,500.00 credit was claimed.
Although the tax credit must be repaid, it is still of significant benefit to first-time homebuyers. This infusion of cash to the homebuyer during the year of purchase will increase affordability by reducing potential mortgage amounts. By not having to finance an additional $7,500.00, homebuyers could potentially save $8,100.00 in interest payments presuming a 30 year mortgage at a 7% interest rate.
If you have not owned a home in the past three years, this tax credit provides excellent assistance to increase your affordability. Now is a great time to buy as interest rates are still low and there is ample inventory from which to choose. Consult your local real estate professional and your tax consultant to see how this tax credit can work for you.
