Given the recent upheaval in the financial system many Huntsville First Time Home Buyers may feel they have been shut out of the market. In today's Real Estate Market the first step of any potential home buyer must be to get pre-qualified for a mortgage.

With a $7500 tax credit available to first time home buyers, now is the time to move forward!  Read all about it: http://www.federalhousingtaxcredit.com/  I have been told you CAN write it off this year, if you purchase a home before you file your 2008 tax returns.  Exciting news!

The first of the year is a very good time to begin this process because assistance programs have been funded.  The winter months are generally the slow home selling season with inventory and prices often at their best levels of the year. So don't count yourself out of the current market until you've done your homework and moreover we would be glad to assist you in the Mortgage Pre-Qualification endeavor!  Just drop us an email and we'll get things rolling.

By far the largest obstacle for Huntsville First Time Home Buyers is the required down payment but there are options:

The Alabama Housing Finance Authority's (AHFA) First Step program is one option designed especially for low and moderate income home buyers.

• First time home buyer is defined by the IRS as not owning a home for the last 3 years (If your name is on the deed, you own it, regardless of the loan).
• 100% down payment financing is offered at lower than market rates
• The 1st and 2nd mortgages are blended so there is only a single monthly payment
• Income and purchase price restrictions do apply

The Federal Housing Authority (FHA) is another option:

• As of January 1, 2009 the buyer is required to provide a minimum of 3.5% down
• The down payment may be gifted from friends, family, and charitable organizations
• The seller may not provided any gifted funds for down payment purposes
• The down payment may not be borrowed
• The seller can provide assistance with closing costs and fees

While FHA requirements have stiffened for 2009 there is also a new First Time Home Buyer Tax Credit available that should not be overlooked:

• Tax credit of 10% of the purchase price up to $7,500
• The purchase must close on or before July 1, 2009
• The tax credit is an interest free loan that must be paid back over 15 years
• Re-payments begin with your 2010 tax return
• The money can be used for any purpose: pay down debt, fix up your home, etc.
• Income restrictions do apply $75-$95k for singles $150k-$170k for joint filers
• The funds can not come from tax exempt bonds such as the AHFA program

Huntsville Homes - For First Time Buyers

I know the thought of buying your first home can be very daunting.  Together, we will breeze right through!