If you are in the position to purchase a home today, congratulations: you've struck gold. Never before have I encountered so many organizations, lending institutions, and even the government enticing folks to purchase a home. Here are just a few that I have run across and some are specific to North and South Carolina. My advice would be to consult with your lender about any incentives they may be offering and if you are interest in a bank-owned property, consult with the bank that owns the property as they may have special incentives for you to do business with them.

The $8,000 First Time Home Buyer Tax Credit

The first time home buyer tax credit is not limited just to first time buyers. If you are a renter that has:

• Not owned a home in the last 3 years (including your spouse if you are married filing jointly).
• Have an adjusted gross income of less than $75,000 individually (or $150,000 for married filing jointly)
• Close before November 30, 2009

you can receive a tax credit of up to 10% of the purchase price or a maximum of $8,000, whichever is less. Unlike the tax credit passed in 2008 which maxed out at $7,500, this new credit does not need to be repaid unless you sell the property or otherwise cease to make it your primary home for the three years following the purchase date. That means that buyers purchasing before December 1, 2009 should plan to remain in their home until December of 2012.

First time home buyers with incomes between $75,001 - $95,000 ($150,001 - $195,000 jointly) can receive a maximum of a $4,000 tax credit. Incomes exceeding those limits are not eligible at all under the program.

Buyers looking to take advantage of the credit will need to download and complete IRS form 5405

The Veterans Affairs (VA) Vendee Financing Program
Typically, to get a VA mortgage, you must be either an active duty servicemen or a veteran with a letter of eligibility. Under the VA Vendee program, ANYONE may obtain a VA loan as long as they are purchasing a VA bank-owned property. Benefits of the Vendee program include receiving a low interest rate, allowed up to a 6% of the sales price in seller paid closing costs, a 2.25% VA funding fee, no pre-payment penalties, and an appraisal is not required for underwriting.

• Owner Occupied
  • 100% financing is available
  • The loan amount may be increased up to 2% to cover closing costs, pre-paids and other expenses (excluding the funding fee)
• Non-Owner Occupied (Investor)
  • Can be financed up to 95% Loan-To-Value.
  • Investors may use 75% of anticipated rent based on appraiser's estimate to offset against the subject property monthly payment
  • Investors must have experience managing rental properties to include anticipated rent on subject property in underwriting
  • No limit on the number of investment properties.

Fannie Mae HomePath Mortgage Financing
Available on Fannie Mae bank-owned properties, buyers should consider utilizing either of the two HomePath mortgage financing options. Owners and investors can benefit from:

• Low down payment and flexible mortgage terms (fixed rate, adjustable rate, or interest only)
• Credit standards are not as tight as with other conventional mortgage programs
• Minimum 3% down payment may be paid personally or by way of a gift, grant, by an employer, local government agency, or nonprofit organization
• Optional mortgage insurance
• No appraisal fees.

Owner occupants purchasing a home that may need work can take advantage of HomePath's Renovation Mortgage, which will allow you to finance both the purchase and "light renovation."

Freddie Mac HomeSteps SmartBuy Purchase Program

Note: To take advantage of this inventive, buyers must be under contract no later than October 30, 2009 and must close no later than December 31, 2009.

HomeSteps SmartBuy Purchase Program is offered only on Freddie Mac owned properties and it entitles buyers to receive a two year home warranty, up to 3.5% in seller-paid closing costs, and up to a 30% discount on the purchase of new appliances for your home. This incentive is only available to owner-occupants and not available through bulk sales, auctions, or sealed bid. To take advantage of this incentive, a coupon must be included with your offer, which you can obtain from Freddie Mac's SmartBuy page.

North Carolina Housing Finance Agency $14,900 Down Payment and Closing Cost Assistance.
Home buyers, that have not owned a home in the last three years and are interested in purchasing a bank-owned property (any bank except NCHFA homes), should investigate if they qualify for the NCHFA's FirstHome Mortgage. The NCHFA's FirstHome Mortgage is designed to aid first time buyers in purchasing a home by allowing for down payment assistance, lower interest rates and even second mortgages for some. Their programs feature income restrictions however for those that qualify and purchase a bank owned property, they can receive up to $14,900 in down payment and closing cost assistance through the NCHFA.

The $14,900 down payment and closing cost assistance in only available in select counties in North Carolina and the buyer has to meet a few addition program requirements to be eligible. Owner-occupants that remain in the home over the first five years of ownership and pay their mortgage on-time are rewarded with a 20% forgiveness of the balance owed on the down payment assistance. Visit the NCHFA's site for information on this program or contact your local lender.

HUD's $100 Down Sales Incentive
Owner-occupants looking to purchase a HUD owned property, utilizing an FHA mortgage, can waive the FHA's minimum 3.5% down payment through HUD's $100 Sales Incentive. Valid only in North and South Carolina, this incentive enables you to apply your down payment towards the home's improvements. In addition, you can negotiate for HUD to cover some or all of your closing costs, allowing you to purchase a HUD home for very little out of pocket. Keep in mind that HUD's minimum earnest money deposit is $1,000 for properties over $50,000 ($500 for properties under $50,000) and the $100 sales incentive is not a substitute for the Earnest Money Deposit. Consult with your HUD registered broker for more details on how you can apply for this incentive.

Charlotte NC Homes