Tag Archives: Buyer

Tax Credit For Home Buyer Has Enabled the Owners Buy a House

Tax Credit For Home Buyer Has Enabled the Owners Buy a House

Tax credit for the home buyers has given the homeowners as well as first time buyers an opportunity to purchase a new house. The ,000 tax credit is for the first time buyers and ,500 is for those who already own a primary residence and have plans to change it. However, before you start calculating, you should find out whether you are eligible to receive the ,500 credit or not. The basic requirements are that you have been living in your present house for at least five out of past eight years and your total household income should be less than 5,000 for singles and 5,000 for married couples.

Even though you can buy any house, the total cost price should not exceed 0,000. You will have to make the new home your primary residence, and at the same time you cannot sell your present home. Many people are trying to take the benefit of these ,500 or ,000 as they are completely free, and they don’t have to relay them to the Federal government. In fact, this is the best time to buy a house if you qualify and fulfill the requirements issued by the government.

The prices are low, the interest rate on home loans has gone down, and in addition you are being benefited with the tax credit. It is not necessary that you will have to buy only a new house, you can also take the benefit of the tax credit home buyer program and buy a resale house, keeping in mind it is not from any of your family members.

First Time Home Buyer Programs

For must know facts about how you can take advantage of home buyer stimulus, visit my blog at http://FirstTimeHomeBuyerStimulus.org/ to get answers today.

First Time Home Buyer: Get a Free Credit Report

First Time Home Buyer: Get a Free Credit Report

You’ve probably seen the many advertisements that promise, a free credit report. You may have asked yourself, how is it possible for all these companies to offer these attractive free services? The answer is, like a lot of things; there is a catch. The catch, of course, isn’t an obvious one, when it comes time to sign up for a free credit report. What many of these unscrupulous companies do is they get you signed up for a free credit report first. Many consumers are finding out the hard way that they have been taken with things like recurring billing and the like. This is how a large number of companies offering free credit reports make their money.

Fortunately, there is a solution to this. Due to numerous consumer complaints the government has provided a resource that allows you to get a truly free credit report. By going to annualcreditreport dot com you can get a free credit report, thanks to our government. The only drawback, however, is that you can only get one free credit report once a year from each of the three credit reporting bureaus.

So, you may be asking, why is it important first time home buyer to get a free credit report? Your credit report shows a complete history of your credit. In some cases, this is gratifying, and others it is disturbing. Regardless of how great you think your credit is it’s always a good idea to check your credit. With identity theft on the rise, checking your credit regularly is more importance than ever. Getting a free credit report, the right way, doesn’t cost you a thing. What it does for you is allow you to see if there are any issues on your credit history. This can be particularly important for the first time home buyer. If you have unresolved issues looming on your credit report it could negatively affect your credit score, resulting in a higher mortgage rate. And assuming that getting the lowest rate on your mortgage is important, you’ll want to make sure your credit is squeaky clean.

It is not at all uncommon for individuals to find mistakes on their credit report. These mistakes can be cleared up, relatively easily with your creditors. You may have an unresolved bill that’s holding your credit down. Even the smallest of unpaid bills can have a negative affect on your credit. All these things can go unresolved if you’re not on top or credit report. Discovering these issues helps in the process of improving your credit so that you get the lowest interest rate possible on your home loan.

Things are hard enough the first time home buyer. You have to come up with a large down payment. You have two get approved for a loan. You have to cover closing costs. The list goes on. Getting your credit straightened out is one of the easiest ways to get on track for the first time home buyer.

After you make sure you have no credit issues, or you get any unresolved issues straightened out, you’ve taken the all-important first step. There are many first time home buyer programs available. Some allow for lower down payments or lower interest rates when it comes to buying your first home. You can withdraw money from qualified plans early if you’re a first time home buyer. There are even some grants in specific states available. Do some homework and be sure to take advantage of these programs, it can save you substantially. And with the cost of real estate, and just how hard it is to be a first time home buyer, you’ll need every advantage you can get.

First Time Home Buyer Programs

If you’re a First Time Home Buyer looking to buy your first home you can visit the site for more details. For more on how to get a Free Credit Report you can get more specifics on that as well.

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Obama’s First Time Home Buyer Stimulus Plan Helps American’s Live the Dream

Obama’s First Time Home Buyer Stimulus Plan Helps American’s Live the Dream

At some point in his/her life, everyone dreams of owning his/her own home. This will probably be the biggest purchase you every make. You might be a single person, a couple or a family, but you have decided it is time to buy a home. The qualifications for eligibility in the First Time Home Buyer program is that you have not owned a home in the past three years. If this applies to your circumstances, then congress passed the First Time Home Buyer Stimulus Program in 2008 and 2009 just for you.

Like all other large purchases, you need to plan before buying a house. You have to decide on location, do you want it to be near where you work, where your children go to school or are you more concerned with the scenery? Start by looking for your dream home in the area you want. Decide how big you want the house to be, the furniture you have, and the things you want to include in your home. After you have an understanding of what you want, you can start the more serious part of your planning.

Now decide on how much you can spend. There are two parts to this, the down payment and your monthly payments composed of your mortgage and the taxes. This will also help you decide on the type of home you can purchase and where. Now you need to look at your credit history. A good credit history will make it easier to be approved for a mortgage loan.

You can learn more about this stimulus package from your bank or lending institution. These programs were created so the housing market would grow as well as to offer financial help to first time homeowners. Homeowners benefit from lower interest rates, a tax credit and help with the down payment. People who are disabled or who live on a low income might qualify for an even lower interest rate.

The First Time Home Buyer Stimulus Programs, created just to help first time homebuyers, gives them all the incentives needed to enter the housing market.

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://firsttimehomebuyerstimulus.net

First-Time Home Buyer Tax Credit Audits

First-Time Home Buyer Tax Credit Audits

The federal government has initiated a host of programs trying to rev up the government. From Cash for Clunkers to the First-Time Home Buyer tax credit, these programs have in fact revved up the auto and real estate markets. Alas, the IRS is starting to take a keen interest in those claiming the first-time home buyer tax credit and is, in fact, starting to audit returns where the credit claim is questionable.

A down payment is obviously one of the big hurdles to buying a home. Faced with a real estate market that could only be called morbid, the federal government came up with the first-time home buyer tax credit. This essentially provided ,000 for a down payment so long as certain requirements were meant. The program has been a huge hit and real estate markets across the country are starting to come back a bit. The only problem is many people just assumed they could claim the credit so long as the home was their first. This is wrong and leading the IRS to start scrutinizing tax returns that include a claim.

I am looking to buy my first home. My parents own their home and a second rental property in town. Given the economic mess, the rental market has been down. After talking about it, we agree that I will buy their rental property as my first home. I claim the first-time home buyer tax credit, get a loan and move into my first home. Everything is fine, right? Unfortunately, it is not. I cannot claim the tax credit if I by from a related person. Arguably, I’ve just committed tax fraud!

There are a host of rules that apply to the first-time home buyer program. They are easy to understand, but few people realize they exist. Make sure to cover them with your tax professional before you buy that first home or you could really regret it.

First Time Home Buyer Programs

Thomas Ajava writes for TaxAttorneyinNewYork.com – locate a tax attorney in New York to represent you in tax disputes with the IRS, state and local agencies.

Florida Home Buyer Tax Credit Extension makes it through Congress

Florida Home Buyer Tax Credit Extension makes it through Congress

Florida Home Buyer Tax Credit Extension makes it through Congress

 

November 1, 2009

For Florida homebuyers this is great news! Congress both extended and expanded the First-Time Home Buyer Tax Credit program Thursday for Florida homebuyers.

The White House says the President will sign it into law.

The up-to-00 tax credit’s expiration date has been pushed forward to spring, requiring Florida homebuyers to be under contract before April 30, 2010, to take advantage and to be closed by June 30, 2010.

The program’s basic eligibility requirements remain the same:

Florida Buyers can’t purchase the home from a parent, spouse, or child Florida Buyers can’t purchase the home from an entity in which they’re a majority owner Florida Buyers can’t acquire the home by gift or inheritance All parties to the Florida purchase must meet eligibility requirements

The new law includes some notable updates, however.

For one, the definition of  Florida “first-time home buyer” has been expanded to include most homeowners with at least 5 years in their current Florida home. “Move-up” buyers like these are now eligible for IRS tax credits, but with a cap gain at ,500.

This means that you don’t have to be a true Florida first-time home buyer to claim the “Florida first-time home buyer tax credit”.

Other eligibility changes include:

The Florida homes sales price may not exceed 0,000 The Florida home must be a primary residence Income thresholds raised to 5,000 for single-filers and 5,500 for joint-filer

And remember, the Florida First-Time Home Buyer program grants a tax credit as opposed to a deduction. This means that a tax filer would receive a cash payment of ,000 from the U.S. Treasury if his “normal” tax liability totals ,000 and he was eligible for all ,000 available under the new tax credit law.

First Time Home Buyer Programs

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Home Buyer Programs: Break-down of a Mortgage Payment

Home Buyer Programs: Break-down of a Mortgage Payment

A mortgage payment typically consists of principal and interest; some people also pay escrow for property taxes and insurance.  There may also be an additional charge for PMI or private mortgage insurance.

Most people are surprised at how much of their payment is applied to interest and how little is applied to principal.  In fact, the largest part of your mortgage payment is likely to be interest early in the loan.

How it Works

Your mortgage payment break-down is always based on your principal balance; if you purchase a home and your beginning mortgage balance is 0,000, the interest rate is 7.5% and your monthly payment is 0.00 then your first payment will be applied as follows:

5 is interest

$  75 is principal

Calculated as follows:

Mortgage balance (0,000) multiplied by interest rate (0.75) = ,500 to get annual interest.  ,500 divided by 12 = 5 to calculate interest for one month.

The new principal balance is reduced by the applied to principal, leaving a balance of ,925.  Each month’s mortgage payment is calculated based on a lower principal balance; therefore, less interest is charged each month.

Equity

When you pay down the principal balance on your mortgage, you are building equity in your home.  Some homeowners choose mortgages with shorter terms and larger payments to build equity faster.

Considering the amount that is applied to interest early in the game, many homeowners choose to make larger principal payments as soon as they can to reduce the loan balance.  Shorter loan terms are not for everyone; be sure to talk to your real estate agent and loan officer about what options are available to you and which one would suit your individual needs.

Mark Goedert of Goedert Real Estate specializes in working with first-time homebuyers.  He assists his clients in choosing the right home and the financing that works best for them.  Home buyers who work with a Goedert agent are well prepared to make great decisions based on advice from an experienced real estate professional.  Visit http://www.under100000realestate.com/ to learn more.

First Time Home Buyer Programs

Mark Goedert of Goedert Real Estate specializes in working with first-time homebuyers. He assists his clients in choosing the right home and the financing that works best for them. Home buyers who work with a Goedert agent are well prepared to make great decisions based on advice from an experienced real estate professional. Visit http://www.under100000realestate.com/ to learn more.

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Popular Home Buyer Programs

Popular Home Buyer Programs

Which Popular First Time Home Buyer Programs Exist?

Apart from being an emotional commitment, buying the first home is a financial commitment as well. One needs to be informed about the first time home buyer programs offered by the United States Department of Housing and Urban Development. These programs are meant to support a first time home buyer financially. The mortgage insurance programs and state-sponsored programs assist in buying the home for the first time.

HUD Programs

One of these Home Buyer Programs is available as very low to moderate income housing loans. Those having their income below 50 percent of the area’s median income are eligible for these programs.

American Dream Down Payment Initiative is another program that has been launched by the HUD. Those who have not owned a house for the last 3 years are eligible for this home buying grant. The amount received through this grant can be used for paying the down payment, the closing costs or for home improving activities.

Non-profit Organization Programs

Apart from the government bodies, there are many non-profit organizations that operate first time home buying programs for families with low income. Habitat for Humanity and American Family Funds are some examples of such organizations that offer home buying grants to the individuals.

HUD Approved Programs

Also, there are many HUD approved organizations that have been assisting the First Time Home Buyers for past many years. Homes for All is one such organization that offers grants that can be sued for paying down payment and closing costs.

First Home Programs in Different States

Talking about the state-wise programs for the first time home buyers, there are many different programs existing for different states. For example, the Ohio Housing Finance Agency in Ohio provides the First-Time Homebuyer program. Similarly, there is a Start Program operated by the North Dakota Housing Finance Agency to offer loans to the first time home buyers.

Down Payment Assistance Loan program is operated by the South Carolina Housing Finance and Development Authority. Individual Development Accounts is a unique first time home funding program in the state of New Jersey. You can learn about such programs in your own state using online resources.

You must also be concerned to learn about the eligibility conditions to take advantage of these programs. Some of the programs require an individual to have a steady flow of income. Also, most of these programs are available only for the first time home buyers.

First Time Home Buyer Programs

Hi! I am Kelsey Willson. I am working as a Loan Officer & Financial Analyst at FirstTimeHomeBuyersloan.org. I love business blogging.

http://firsttimehomebuyersloan.org/

Which First Time Home Buyer Programs Are Right for You?

Which First Time Home Buyer Programs Are Right for You?

So, you want to buy a home. I congratulate you. Now, you need to know what first time home buyer programs are right for you. Where do we begin?

Let’s get down to the basics. First you want to have your credit file in order. By this I mean, no collections or late payments in the last 2 years.

Assuming this is the case, you can begin shopping around for some first time home buyer programs. There are plenty out there. But, for the sake of time and space in this article, I’m going to share with you two options. FHA and VA.

Once you get a feel for these two programs, you will have the knowledge to talk the talk and walk the walk. There are others programs however.

FHA FIRST TIME HOME BUYER PROGRAMS

Now, hands down the FHA is one of the best first time home buyer programs. Why? It has relaxed credit standards over the conventional loan and also has a low down payment feature.

First let’s talk about the credit requirements. In the past FHA would let you buy a home without any credit score at all. Now they seem to be requesting a score around 620. This is still lower than a conventional loan which requires 700 and above.

A credit file is not all that hard to build if you do not have one. Talk with a large national lender about this. Look for a loan officer that has years of experience with FHA home loans. He/she can give you some ideas.

When it comes to a down payment, FHA since 1934 has offered this 3% low down payment option. This makes it possible for you, the first time home buyer to get into a home with very little money.

In fact, the down payment can even be a gift from a relative or charity. I’ve written other articles about down payment assistance, which are awesome when you see how they work. You can in effect buy a house with no money down.

FHA loans do have MIP or a mortgage insurance premium of 1.75% of the loan amount. You have to pay this up front at the loan closing. This amount is added onto your original mortgage amount. So it increases your payment by about .55% of the loan amount until you pay off the mortgage.

If you ever go to sell a house that has FHA mortgage insurance on it, or pay off the loan early you may be entitled to a refund of this insurance premium. Check with your lender about this.

VA FIRST TIME HOME BUYER PROGRAMS

Now the VA loan program is even better. However, you must be a veteran to take advantage of these first time home buyer programs.

When it comes to credit, the VA loan works much the same way as the FHA home loan. So I’m not going to spend much time on this. VA loans may allow a little bit lower credit score.

With the VA home loan, the down payment and MIP is a horse of a different color.

VA loans require NO DOWN PAYMENT. Yes they are 100% financing. Again this is a benefit for veterans only.

The mortgage insurance premium is another reason the VA loan is for first time home buyers. They do not have any MIP to be paid. HUD guarantees the loan 100%. However, there is a VA Funding fee which could range from 0-3% of the loan amount. If the veteran is injured in combat and can have this documented by the VA, then it is 0% funding fee.

So unlike the FHA loan which your loan amount and payment increases slightly, with a VA loan the payment amount does not increase, but the loan amount may increase because of the funding fee.

This is the best loan option if you ask me.

Let me tell you a brief story about a VA loan I did several years ago. There was this really nice couple with one child that wanted to buy a home.

They came to me for a mortgage. After talking with them I learned he was a veteran. When I discussed the benefits of a VA loan they got excited.

He was an injured Vet and had the paperwork to prove it. He had been permanently injured in the face because of shrapnel.

So a long story made short, they bought a house for ,000 with no money down and no VA funding fee. If I recall the maximum out of pocket he put into the deal was less than 0.

Now they are buying a home for less than what they were paying in rent. Again, what VA offers is one of the greatest of all first time home buyer programs.

Explore all your options when looking for a mortgage. Ask questions of your loan officer. Be sure to get your education first, then go looking.

First Time Home Buyer Programs

Jeff and Melinda Ragan want to help learn more about first time home buyer programs available and other helpful information on their website, First-Time-Home-Buyer-Solutions.com.

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First Time Home Buyer Programs and Mortgage Refinancing Options

First Time Home Buyer Programs and Mortgage Refinancing Options

Several first time home buyer programs exist to help future homeowners obtain home loan financing. Not all programs are available to everyone and each has unique eligibility requirements. In order to determine which home buying programs are available, buyers can conduct research online or consult with a mortgage adviser.

The most common first time home buyer programs include: HUD homes, FHA loans, VA loans, Fannie Mae financing, and Making Home Affordable; a U.S. government program for mortgage refinancing and loan modification.

First time home buyers can also benefit from the Worker, Homeownership and Business Assistance Act, which provides an 00 tax credit for properties purchased by April 30, 2010. The Recovery Act also extends up to 00 tax credit to borrowers who have lived in their house for at least five years and want to purchase a higher priced home.

The U.S. Department of Housing and Urban Development (HUD) offers a variety of first time home buyer programs. HUD programs vary by state, but most home buying programs involve purchasing HUD homes at significantly reduced prices.

Individuals who work in teaching and public service professions such as law enforcement, firefighters and emergency responders, might qualify for HUDs ‘Good Neighbor Next Door’ program. Good neighbor home purchase incentives include buying houses at up to 50-percent off realty listing prices.

FHA loans are backed by the Federal Housing Administration and provide financing opportunities for first time home buyers with less than perfect credit. Applicants who have filed bankruptcy or possess inconsistent employment sometimes find it easier to obtain FHA financing.

One major benefit of FHA loans is the low down payment requirement of 3-1/2 percent. Down payment money can come from outside sources such as a gift or loan from family or friends. FHA financing is the only home loan program which allows down payment assistance from an outside source.

VA loans are available to veterans and active duty service personnel. The Department of Veterans Affairs offers no money down financing and guarantees up to 25-percent of home loans; making it easier for veterans to obtain a home loan. First time home buyer incentives and mortgage assistance can be found at va.gov.

Fannie Mae presents first time home buying programs and mortgage refinance options. One of the more popular is the Home Path® program which offers an assortment of homes for sale. Fannie Mae homes are foreclosure and deed in lieu properties sold at reduced prices through approved realtors.

Fannie Mae home buying incentives include flexible mortgage terms, no appraisal fees, low down payment requirement, and home loan financing for individuals with bad credit. First time home buyer and mortgage refinance information can be located at FannieMae.com.

First Time Home Buyer Programs

Author and real estate investor, Simon Volkov, offers a comprehensive real estate article library to help home buyers make informed decisions. Topics range from first time home buyer programs to developing real estate investment portfolios. Buyers, sellers, and real estate investors are encouraged to visit www.SimonVolkov.com to learn more about Simon and the services he offers.

realestatemarketingthisweek.com – First Time Home Buyer should use a Mortgage Planning Expert – Part 8 – Credit scores now are a major factor with interest rates. You see the liars up on the internet with interest rates being at 4.625% and all this kind of hocus pocus, its not true. You are never going to qualify for that rate today. They are going to lie to you, once you sign and see the fine print you are going to realize that it is a ridiculous idea to pay that amount of money in fees. Credit scores have to be significantly higher than they used to, but again I have to tell you, its my opinions that a 70% no doc loan with someone who has a 720 or higher credit score I believe is a good loan. I personally believe that at some point it will be brought back. I am not arguing with that, with a good FICO score I can agree with a 20% down for a stated income loan. People are encouraged through our tax system to write off all of their expenses and so often we have small business people who really are making money but because they take advantage of our tax system they are not able to get a loan. They cant qualify based upon their income. In a lot of cases yes, but once again I definitely want to point his out just because someone is self employed and owns a small business and they do write everything off, that does not mean that they will not qualify. They may have been told now that they have to go stated income because of tax returns, but most people, the small business
First Time Home Buyer Programs
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First Time Home Buyer Programs

First Time Home Buyer Programs

With the collapse of the Subprime mortgage market, the mortgage landscape has changed dramatically in recent months. Many of the more lenient mortgage programs have been discontinued. How will this effect the demand for first time home buyer loans?


From approximately the year 2000 until the year 2004 interest rates were continually lowered, reaching multi-decade historic lows by late 2004. This historic reduction in interest rates powered a multi-year boom in the real estate market. Real estate prices were rising rapidly with each passing day, and it seemed that everyone wanted to be involved in real estate.


That included lenders, who were happy to gain new business. In the frantic race to make as much profit from real estate as possible, lenders lowered their standards and created new lending requirements that were so lenient it seemed that anyone with a pulse would qualify!


Loose lending standards, historically low interest rates, and rapidly rising real estate values combined to make the perfect formula to attract millions upon millions of people, and create a real estate bubble along the way.


And that is exactly what happened.


And then disaster struck.


In August of 2007, the subprime home loan industry begin to break down. Large investors, monitoring the default rates of mortgage portfolios and concerned about the continuing fall in real estate prices nationwide decided to stop purchasing subprime loans. By late fall of 2007 the entire subprime industry as we knew it had vanished.


For the first time home buyer, as well as seasoned real estate investors, it was easy to take advantage of the lax guidelines offered by these lenders. They had flocked to the real estate market in droves. And then suddenly, the subprime market came to a screeching halt.


With the downfall of the subprime industry, millions of potential home buyers are now searching for alternative mortgage products that will accommodate their financial and credit history.


Does this mean that first time home buyers will no longer qualify for a home loan? No. There are other alternatives besides the subprime mortgage loan.


There are several solutions. Fannie Mae’s American Dream Commitment offers the most exciting, affordable first time home buyer loan solution that we have seen. To quote Fannie Mae, “Many Americans still are being overlooked, underserved, and overcharged in their search for affordable homeownership.” In defining their goals, Fannie Mae strives to “expand access to homeownership for first time home buyers and help expand the minority homeownership percentage with the ultimate goal of closing the homeownership gap entirely.”


This commitment translates into flexible, accommodative, and low cost home financing available to first time home buyers with less than perfect credit and restrictive budgets. But that’s not all. Reading into the guidelines carefully one will discover some amazing and thoughtful criteria. Amongst these guidelines are included a surprising and liberal allowance for “undocumented income”, expanded seller contribution tolerance, and a complete absence of saving and asset reserve requirements. All of these flexible rules make possible the lowest cost, no money down mortgage program available anywhere.


Credit score requirements are now the easiest of all of the first time home buyer loan programs available in the home loan market. The guidelines provide for a score of 620, but with moderate compensating factors lenders may approve loans with scores as low as 600.


In addition to this program, nearly every state offers some form of downpayment help for first time buyers. First home buyers are not completely shut out of the market. There remains ample state and Federal funding for first time home buyer programs.

First Time Home Buyer Programs

J Stromsteen is a small business owner with many years experience in the finance and insurance industry. She writes for the website First Time Home Buyer to provide information for various First Time Home Buyer Programs.

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