Downpayment Help for First Home Buyers

By
Real Estate Agent with Mountain Lakes Realty

Many of us are shocked and dismayed at the amount of money the federal government is spending on Wall Street businesses that are failing. Well it is about time that Uncle Sam did something for Main Street and now its happening!

The Federal Government wants to help you to participate in the dream of buying your own home. As part of the Housing Stimulus Bill, Congress created an unbelievable opportunity for first time buyers, in the form of a tax credit for those who purchase a home before July 1, 2009. With most lender programs now demanding higher down payment, that $7500 can be the bridge to your future.

The tax credit is a "refundable" credit, of up to $7,500 or 10% of the purchase price of their home, whichever is less.

Who is eligible? Any person who has not owned a principal residence in the three years prior to closing and meets the income limitations $75,000 individual and $150,000 for married couples. Also $95,000 individual and $170,000 married can receive a partial credit.

How do you qualify? Meet the definition of "first time buyer" you must purchase and close on a home prior to 1 July 2009. Log homes, post and beam homes, timber frame homes, and modular log homes qualify and sales are expected to heat up because of this new path to home ownership.

Do I have to pay the money back? Yes - but not immediately. The credit is an interest free loan for up to 15 years. The credit must be repaid at a rate of 6.67% per year starting two years after the purchase. Unpaid balance due at time of sale. You could even pay the full $7,500 by increasing your Federal income tax withholdings by only $20 per paycheck!!

Not quiet free money but a very economical way to get the down payment you need to buy your own home. Probably the only opportunity we will enjoy in our lifetime for an INTEREST FREE government loan.

How do I get the money? Talk to your tax advisor. It appears that you can receive a credit against your 2008 or 2009 Federal income Tax. It will reduce your tax bill and increase the amount of your refund. Dont Wait. Now is the time to start the paper work so you will in a position to purchase your home as soon as your 2008 federal tax return is ready to mail in.

We have loans ready for your new home. You can check out our lenders or contact us for assistance.

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