This week a met with a First Time Buyer. He's got a good job with security and steady pay - he's a firefighter. He's also realized that he's tired of throwing good money after bad into rent, and he'd like to take advantage of the $8,000 First Time Homebuyer Tax Credit, which expires on April 30th of this year. He's heard about some of the 100% financing options that are available, because he brought them up at our consultation. In addition to his steady income, he's got little debt, some assets and good credit.
So he's doing everything right, right?
He was correct about the 100% financing options - there were two programs that he could have qualified for. Unfortunately, both of these programs were cancelled just as of last week. So now what options does he have? He can't pay cash for a house, he's not a veteran, and private financing is cost prohibitive. FHA would be the next program to look at. Unfortunately, he needs a 3.5% down payment and he doesn't have quite enough.
Here's what you need to know - if you're a first time buyer, you really need to have time to prepare. Things like this are going to happen. Programs are going to get cancelled, and you need to know what your alternatives are and give yourself time to prepare for them.
So if you are a first Time Buyer and you are thinking of buying a home, even if it's not for another year, or even two years, it would be helpful for you to sit down with a Lender to see what you can do to prepare financially, and with a Realtor to see what you will be able to afford.
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