With declining markets in most areas along with landlords on fixed mortgages, renting is becoming more expensive than owning your own home.
Some municipalities realize the benefit of ownership and are chipping in contributions making it more affordable to own. As an example, the City of Newark, Delaware is currently running a program to benefit anyone buying a home in their municipality. They are offering a low interest loan that can be used toward the down payment or closing costs. You can find this program here.
Your Federal Government is even giving first time home buyers an $8,000 tax credit, that is not a deduction taken from your gross pay, but a straight credit. That means if you owe $1,000 at the end of the year, you will get a refund of $7,000 from your federal tax return. Details of this program and FAQ's can be found here. www.federalhousingtaxcredit.com
If you are looking for an updated townhouse with three bedrooms, two and a half bathroom, and with 1,550+ sqft. in Bear, DE, you can expect to pay around $1,200 per month. The same townhouse is currently on the market for sale priced at $154,900. Your payment for that same house with principal, interest, taxes, and insurance would be $1,086! (I assumed a $7,000 down payment and 4.75% interest).
Want to start your home search now? Visit my website www.delawarehousefinder.com I have information packets available for first time home buyers.
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