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First Time Home Buyer Programs

Obama’s Federal Program Bringing Home Loans into Reach of First Time Home Buyers

Obama’s Federal Program Bringing Home Loans into Reach of First Time Home Buyers

Economic weakness threatens the chances of many Americans to become homeowners and so threatens the nation’s ability to thrive as a nation. Keen to help, the federal government offers the First Time Home Buyer Stimulus Package. It targets first time buyers and those who have not owned a home in three or more years.

Purchases under this program are of pre-owned homes and homes in the new construction phase, stimulating demand in the housing market. Whether indirectly, by boosting buys of pre-owned homes, or directly, by boosting housing starts, this gives builders and their crews more work. As for homeowners, they receive help in three ways, with tax credits, assistance with down payments, and with decreased interest rates.

The initial purpose of the stimulus program was to stave off the economic slowdown of which existence became apparent during the financial crisis of 2008. The developing situation demanded reinforcement of these efforts, which came in the form of a more comprehensive plan from the federal government. In particular, the Obama administration believed that the reluctance to spend money came from the fear of losing home ownership. This, along with the collapse of real estate market, convinced to administration to act to stimulate home ownership.

For any purchase made in the year 2009, a homebuyer may qualify for a 10 percent tax credit. This may for up to ,000, with the basis being the gross purchase price. The home owner may claim this credit either the year of purchase or within two years of purchase. This tax credit provides money to the homeowner, which he may decide to save.

Next is a reduction in the down payment. Usually, these are at least ten percent of the home’s price. The government plan is to pay off part of the down payment. Lower down payments make it easier to purchase the home. Furthermore, reducing the down payment reduces the burdens keeping you from placing money in an investment account or from improving the new home. Also, government help may reduce the interest rate on your home loan by reducing the basis points on the interest rate. Qualification for the tax credit requires that a single person’s income not exceed , 000 and that with a partner income not exceed 0,000.

A third way to encourage home purchases is a tax rebate. In this case, the federal government places the rebate on the amount of interest assessed on the loan. This is not related to the tax credit. Under this stimulus program, homeowners may apply for both the credit and the rebate. Landlords, who buy property for income purposes, may qualify for the rebate. Because the landlord’s maintenance expenses go to the upkeep of the rented property, they are eligible for income tax deductions. Hence landlords are eligible for the rebate.

Economic growth is impossible without continuous improvement of the national infrastructure. However, the collapse in the demand for housing hits precisely here. The Obama adminstration intends to rectify this with tax credits, down payment assistance, and interest rate reductions. Under the First Time Home Buyer program, it intends to place buyers in new homes and stimulate economic activity.

First Time Home Buyer Programs

For tips and facts about how you can benefit from Obama’s Home Stimulus Plan – or to find out if you qualify, visit our no nonsense home stimulus guide: http://ObamasStimulusPackage.net

realestatemarketingthisweek.com – 00 tax credit for first time home buyers with low down payment – Part 3 – We have back in the studio today Mr. Dan Havey. Dan and I have worked together in the mortgage industry for about 14 years and we are happy to have him back. He has seen a lot of changes in the market and thanks again for being here. Michael, here is a question I wanted to ask you, there is so much misconception in the marketplace today as far as what is still available for financing. I think a lot of people have this idea that it is impossible to finance a loan or get a mortgage or that you have to be able to put 20% down or have a 720 FICO score. Can you let people know whats really going on out there? Well you know a lot of things have gone away. There are a lot of those old loan programs that were fancy ways to sell money and finance real property and a lot of thats gone. The reality of it is, if a person has a minimal amount of money down, there is absolutely financing through the Federal Housing Administration with 3.5% down. You can buy up to about 8000 with only 3.5% down. Now with Fannie Mae and Freddie Mac, we actually do have a few investors that will allow us to only put 5% down with those and that loan amount maximum is 7000. So there is still plenty of financing for primary residences. Now in regard to looking at investment properties believe it or not there are actually still some stated income loans out there, but the stated income loan is …
First Time Home Buyer Programs
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First Time Home Buyer Programs

Cash Home Buyers Program In Milwaukee

Cash Home Buyers Program In Milwaukee

Everywhere you go you can see signs that say we buy houses, cash buyers, and cash for your home. A home owner might be curious to know exactly how that works, and want to be reassured that there is no scam involved. The process is simple and makes a lot of sense. By coordinating with investors these companies have tremendous buying power that works to help homeowners who need to sell quickly due to a move, foreclosure, or other emergencies. Investors are looking for properties they can make a profit on and usually homes that need to be sold quickly can be bought at a lower price.

As a homeowner, there is a great benefit to this cash home buyers Milwaukee program. There are many homeowners who for one reason or another need a quick sale. The reasons range from needing to move, needing to get rid of an investment property, avoiding foreclosure, a divorce forced sale, or maybe a home has been inherited and it needs to be sold. Whatever the reason, this option is great for those who really don’t want to spend months on end waiting for a potential buyer. Those who buy the homes, want a deal, but are usually very fair and offer a great price.

For the investor purchasing homes through the cash home buyers Milwaukee program, gives the investor a great avenue to get great returns on their money. Reasons for quick sales are usually irrelevant and the benefit is being able to pick up an investment property for less money and it usually will include the repairs that may be needed to fix up the home. The fact that investors have a reputable company backing their investment helps them to feel better about themselves staying away from a scam. A little research and an investor can feel confident about their investment program.

The cash home buyers Milwaukee program really knows their stuff and the laws pertaining to these kinds of quick sales. While the benefit for the homeowners and the investors are great, it’s also nice for each party to know that they are doing business with a system that works and has been proven over and over. It’s also comforting for the parties to know that they are not alone in their transaction, that there is a whole group of people with experience and knowledge backing them every step of the way.

First Time Home Buyer Programs

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http://www.SellHouseMilwaukee.com/

realestatemarketingthisweek.com – First Time Home Buyer’s Beware, Home sales double in last year – Part 5 – So we are back in studio today with Dan Havey. Dan and I have known each other for many years and we have worked very close over the years in real estate. Dan and I are not necessarily 100% in agreement with where the market is today and whether we are at the bottom or not. I tend to believe that we are. Let me tell you my thinking on this. Dan uses actual facts and figures to make his prognostications. Heres what I know, I know that Fannie Mae and Freddie Mac have put a moratorium on foreclosures. What that means is that they are slowing the supply of repos. What that means is that they are putting fewer homes on the market, which means the supply has been reduced to a 9 month supply of resale homes on the market. The builders are gearing up, getting ready to start building again, but they are not building again just yet. Thats a great indicator. Interest rates couldnt be better. They havent been better than they are now, so not only can you buy a house at the same price you would have paid for that house in 2002, but you are going to get a significantly lower interest rate then it would have been then. Effectively a house today is going to cost you less than it would in 2002, with the interest rate and the home value being what they were. Now if property values do continue to increase and the average rate of 4%, your internal rate of return on your investment will …
First Time Home Buyer Programs
Video Rating: 5 / 5

First Time Home Buyer Programs

First time Home Buyers Program- A Key to your Own Home-The Federal Government’s Incentive Program

First time Home Buyers Program- A Key to your Own Home-The Federal Government’s Incentive Program

The housing crisis has virtually brought the housing market to a standstill. Houses are now worth half the price, they were three years ago. Even with the low prices, the recession was so crippling to the economy, that people still would not buy these homes. Prospective home buyers were also in fear that they may lose their jobs, and would not want to commit themselves based on an uncertain future. Banks have frozen lending, and mortgage funding has all but dried up. Thousands of homes went into foreclosure, and many people filed bankruptcy to save their homes. The crisis is so severe, that many real estate

The Banks and mortgage companies have thousand of unpaid mortgages on their books, and many homes that were foreclosed on, in their inventory, that they either have to sell at a loss, or keep the houses until the value is closer to the balances on the mortgage. Even homeowners find themselves in an upside down position. Their homes are valued much less than their mortgages. The housing crisis is at the heart of the recession, and the near collapse of the banking sector. The government as a part of the stimulus package, tried to help the housing industry by offering help to first time home buyers.

1. Tax credits

 2. Down payments assistance

3. Lower interest rates

In order to speed up the sale of the houses on the market, the government offered 00 as a tax credit to first time home buyers, who purchased their homes between January 1, 2009 and November 31, 2009. The claim must be made within two years of buying the home. Congress recently extended the program to April 2010, and include current home owners, who have been living in their homes for 5 years and over.

 The second option is a down payment assistance program of 10% of the sales price, for example, ,000 on a 0,000 house. The government also offers you a loan with lower points, which results in lowering the closing costs or a lowering the monthly mortgage. This program is designed to assist individuals with income of up to ,000, or couples with joint income of up to 0,000.

A final alternative is a tax rebate on the loan’s interest. Persons who own investment properties can avail themselves of the tax rebate. This can be used to upgrade the property’s value and can be claimed as an income tax deduction.  

 Your real estate agent, and mortgage broker, will guide you through the process, while you search for your dream home.

 

 

First Time Home Buyer Programs

Patricia Bardowell has been a professional writer over five years. She writes for Triond.com, Western Examiner, Demand Studios, Newsvine, and commentator with Huffington Post.

She has a wide ranging experience in the financial sector, namely banking, life insurance and real estate. Patricia is also a medical assistant, and worked in the health field for several years.

She earned a Bachelor’s Degree in Criminal Justice (2008) and Masters of Business Administration (MBA) (2009), both from Keiser University.