Ok, first time home buyers; this is a reminder that the $8,000 dollar tax credit is only good until Dec 1st, 2009. So you need to purchase a home by that time and if we do the quick math, it looks like you have about 6 months to get that done.
Let’s go over how the program works: First, if you haven’t owned a home for at least three years, you qualify. Second, you need a credit score of at least 620 and if you go with an FHA loan, all you need is 3.5% of the purchase price for a down payment. Combine that program with incredibly low interest rates and home prices and this really is a good opportunity to get into your first home. One other note about the program is that the IRS will send you a REFUND this year for homes that close between April 9th and December 1st 2009. You can actually get a check in the mail for $8,000 dollars. You can also amend your 2008 return and collect the tax credit/check this year.
Now I know what you’re saying, “The tax credit/refund is great, but I am not buying my first home because I am afraid of losing my job, my credit isn’t so good, or I don’t have enough money for a down payment/closing costs.” Well you are not alone. As I speak with first time home buyers, those were the exact three obstacles that prevent them from taking advantage of this offer. So let’s address each problem and see how we might be able to overcome each obstacle.
First, credit can be repaired and in some cases, in 30 days or less. So see a qualified lender who can help you clean up your credit report. Not every lender specializes in credit counseling so be careful who you speak with.
Next week we’ll tackle the second and third obstacles mentioned above and talk about possible solutions.
Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com
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