First Time Home Buyers

The housing slowdown has led us back to the basics.  Homes are more affordable, the primary reason for buying is not to cash in on the equity a year from now and you have to qualify for a loan by coming up with a down payment.  In addition the new Housing Recovery Act provides some assistance for first time buyers. 

 

Buyers who have not owned a home in the last three years are eligible for a tax credit equal to 10 percent of the property purchase price up to a maximum o f,500 for married couples  and ,700 for single tax payers. 

 

Here is how it works:

•      A married couple buying their first home with a purchase price in excess of ,000 and with less than 0,000 in adjusted income will qualify for the maximum benefit of ,500.  The benefit phases out as income increases and is not available for married buyers with adjusted income in excess of 0,000.

 

•      For a single tax payer the maximum benefit is ,700 on purchases above ,000 and with adjusted income less than ,000.  The benefit is reduced to zero with adjusted income in excess of ,000.

 

•      The first time home buyers program is actually a loan which the buyers must repay of 15 years at zero percent interest starting in the second year after the home is purchased.  A buyer who qualified for the maximum ,500 credit would repay it at a rate of 0 per year.

 

•      The program covers homes purchased on or after April 9, 2008 and before July1, 2009.  

 

I think this is a very good program and will help may first time home buyers here in the Sacramento area.  If you want to learn more about the Housing Recovery Act of 2008 check out How the housing rescue bill can help you by Louise Buford over at my website, Jalone.com. Louise is with Partner´s Mortgage and one of the best lenders I have worked with.

First Time Home Buyer Programs