If you are in the market to purchase a home, but are having trouble finding the money for a down payment, please take note of the following tips:
1. How can homebuyers find money for a down payment?
- Start a special savings account. Contribute a certain amount per pay check. Also, deposit any money received from your federal income tax return into that savings account.
- If you are expecting an annual bonus, set aside that money as well.
- Use your tax sheltered funds, such as your 401K, Tax Shelter Annuity, Individual Retirement Account, Profit-Sharing or Stock Ownership Plan at your place of employment. Be sure to consult with your financial advisor before making this move.
- Secure gifts from family members and/or friends.
- You may qualify for other county and state grant programs that are currently available.
On another note, The United States Department of Housing and Urban Development (HUD) is currently offering a $100 down program if you purchase a HUD home and are an owner-occupant buyer.
2. Are there any 100 percent programs available to buy a house?
The market changes by the day. To my knowledge, the only 100 percent program available is a VA Loan, which is a loan guaranteed by the Department of Veterans Affairs. If you a veteran, contact the VA to see if you have any available benefits.
3. Are there any grant programs available to assist homebuyers with the down payment?
The Georgia Dream Program is a grant provided by the Georgia Department of Community Affairs. Under this program, you must be a 1st time homebuyer or have not owned a home within the past 3 years. There are also income limitations to qualify.
4. Are there any special home programs available for teachers or public safety workers?
The Georgia Dream Program offers additional benefits for those in the fields of education, public safety, including the military and health care.
The United States Department of Housing and Urban Development also offers a special home program for law enforcement officers and teachers (Officer/Teacher Next Door Program) for the purchase of a HUD home.
5. Who can qualify for the new $7500 federal tax credit?
First time homebuyers who purchase a principle residence on April 9, 2008 and before July 1, 2009 are eligible. If you (and your spouse, if married) have not owned your principle residence for a 3 year period before your purchase, and you have never taken advantage of the DC first-time homebuyer credit, you should qualify as a first-time homebuyer. Like all tax credits, it will directly reduce the total amount of taxes you owe. When you file your taxes, for the year you purchased your home (2008 or 2009), you will be able to subtract the amount of the credit from your Federal income tax liability, increasing the size of your refund or reducing the amount you owe. Be sure to consult with your tax advisor for more information. (Source for information: The National Association of Realtors®).
If you have any questions regarding this information, please feel free to contact me at 678-644-1712 (direct); or email: altmd3@aol.com.
Altimese L. Dees is Broker / Owner of The Real Estate Gallery of Georgia, LLC. For more than a decade, Altimese has been studying and consulting individuals, families, investors and corporations on topics related to real estate, housing and mortgage financing. She is an associate broker for RE/MAX Advantage in McDonough. Altimese serves as a local director of the Metro South Association of Realtors®, and a member of The National Coalition of 100 Black Women, Inc., MECCA Chapter. She can be reached by calling 678-644 -1712, or email: altmd3@ aol.com.
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