The Las Vegas home buyers market is ripe for investors, who often pick off the homes most affordable to first time homebuyers. In August, 2009, the median home price in the city was $210,000 when bank-owned and distressed property sales are figured in, or $225,000 for non-distressed sales.  Median condo prices in August were $123,000.   Despite the competition, first time homeowners have some good opportunities to buy a home or condo that was previously valued at much more.

If you are in a position to buy a Las Vegas home right now , one good incentive is  the first time homebuyers tax credit about to expire on November 30.  Since processing your loan, appraisal, and paperwork for the home takes longer these days, October 15, or to be safe, even October 1, is the deadline.  Only those who have closed on their homes before December 1 can claim the credit.

With the credit, can get up to $8,000 or 10% of the value of the house for your purchase.  It is good on a variety of single family homes, townhouses, and condos.  All you have to do is live in it for three years and the credit does not have to be repaid.  If you view the home as a starter home, you can later sell it and apply the equity toward the downpayment on your next home.

At the moment in Las Vegas, there are plenty of bank owned properties up for grabs and more to come.  If you buy one, you can use the $8,000 credit in conjunction with a 203K loan to renovate a primary residence where you will live for three year before you sell it or rent it out.   If you want to be a landlord later, you can turn it into rental property then.

As a new homeowner, $8,000 can help you in many ways. 

The credit is cash in your pocket,  Once you claim it as a credit, the $8,000 in cash will come back to you and will help you get the things you need for your home and subsidize your first few mortgage payments.  Cash is often tight when you move in.  You can buy those new drapes, add deck, or renovate the bathroom.  You can even transition from an apartment to a home with additional money.

With  $8,000 on the way, you get more home than you planned. You should aim for an affordable house, but the credit can effectively bring down the cost of the home so you can buy a home at the upper end of your price range.  Since investors are vying for lower priced homes, you might have less competition for a higher priced home.   Since many homes are already priced to sell at incredible prices, you can still plan on lowering your total lower cost by $8,000 when you apply this credit to the principle.

If you would like to apply the credit toward a down payment, there are several ways to do use it for this purpose.  Since May, 2009, you can have the credit monetized for any part of your down payment over the3.5% required by FHA or can use it toward closing costs.  State housing agencies, certain non-profits, or certain lenders can monetize the credit via a bridge loan or second mortgage to be repaid when the credit comes back.  If you need help with your down payment or need help with closing costs, the credit could help you now.   

The $8,000 tax credit can give first time homebuyers a needed edge in the Las Vegas market.  Have questions?  Need help  planning your personal real estate future? Contact Yonas Woldu today by visiting Vegas Real Property website and the new AskYonas website.