There has never been a better time to buy your first home than now. Yes, there is a risk that your house will be worth less next year if you buy today, but unless you plan on moving in a year, you have nothing to worry about. Some buyers are ready to take advantage of all of the great values on the market, as they have been putting aside money for a day such as today. I currently have a house under contract to sell to a couple who is making a down payment of 20%, which means they also wont have to worry about the additional expense of PMI (Private Mortgage Insurance), which is required for mortgages over 80% of the value of the home.
For other first-time homebuyers who don't have a lot of cash set aside, you will benefit greatly not only from first-time homebuyer programs usually offered by your local city and state, but also from the new first-time homebuyer tax credit for 2009. In 2008, Congress provided for a tax credit of $7,500 as a way to decrease the over-supply of homes for sale and encourage new homeowners to buy homes. For 2009, the tax incentive has been raised to $8,000 (house must be $80K or more, otherwise the credit is 10% of the cost of the home).
What does this really mean for first-time homebuyers? It means that when you prepare your individual income tax return and you've computed your total tax owed, the tax credit up to $8,000 will be applied to reduce your entire tax bill. If your tax liability is less than the credit, the IRS will actually send you a check for the difference. For example, let's say your tax liability for the year is $6,000; you would receive a check for $2,000 from the IRS. It is known as a "refundable" credit.
Learn more tips about buying your first home by signing up for our FREE First-Time Homebuyers Report, "5 Secrets You Must Know Before You Buy Your First Home". Learn more about the 2009 tax credit.
To Your Success,
J.A.S.
Grande Properties LLC
http://www.grandeprop.com
Comments(0)