In August of 2008 there were 2 laws changed, 1 was good for home buyers and the other 1 was bad for home buyers. The first law created a $7500 tax rebate for first time home buyers, the second eliminated seller contribution towards a buyers down payment.
Seller contributed down payment was an essential necessity for many home buyers. Now a home buyer is required to make a 3.5% down payment to receive FHA financing. Since the seller is no longer allowed to provide any of that assistance we must now look for alternatives. That where Gift Funds come in. Gift Funds are the best way to meet the 3.5% requirement towards the down payment on your next home.
The Gift Funds can come from several sources and can even be a loan. Here are your options for gift funds
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Relatives- Mom, Dad, Grandma, Great Uncle you never met
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Employer- Ask your boss.
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Unions- Your union might have a program to purchase homes
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Non-Profit organizations- many give funds for home buyers
With the $7500 tax rebate we are seeing a lot of parents loaning a down payment and having it re-paid after receving their tax refund. If your parents are reluctant to make the loan, suggest that you move into the basement to save money for your down payment. Wait and see how fast the checkbook comes out.
There are plenty of options when it comes to getting a home, we know that 2009 will be the greatest buyers market ever. Don't miss out on your opportunity to buy a great house and get your $7500 tax rebate.
Find your dream house now
This report is brought to you by The Russell Home Team, your Johnson County KS Real Estate experts. www.SearchjocoHomes.com 913-681-1383
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