STEPS TO YOUR FIRST HOME
GET THE FACTS!
Start The Home Search
Start looking for homes using the Internet, where you will find financing options and home buying information. You are encouraged to use a Realtor for many reasons. They help take the mystery and fear out of buying your first home by:
*Researching the market and let you know if you are really getting a good deal
*Help with issues like property lines,easements, home inspections, earnest money, feasibility studies, septic/sewer, etc. There are hundreds of details that need to be considered when purchasing a home
*It does not cost you anything, not a dime to call a Realtor. Commissions are paid by the seller, not the buyer and are usually a percentage of the home sale price
With so many homes on the market, it is a good time to buy. You should be able to find the right home at a fair price. Keep track of interest rates and go online to use a mortgage calculator and plug in some numbers. Right now it is a buyer’s market and that is great news for you as a first time buyer.
Will prices go down further? There are hundreds/thousands like you renting and wanting to buy a home and are just waiting to see what the market is going to do. Now is a good time to buy because as more come forward to buy and reduce the number of homes for sale (inventory), the homes will go up.
Are You Ready to Buy Your First Home?
After you have determined how much home you can afford and if you have saved some money for a down payment on a home you wish to stay in for awhile, then the answer is yes.
Help With Your Down Payment
SHOP FOR A LOAN & RESEARCH FIRST TIME HOME BUYING PROGRAMS! There are many federal programs and dollars available to assist first time home buyers. Start with HUD at www.hud.gov Look for Down Payment Assistance Providers (DAPs), which are government agencies that are there to help you as a first time buyer. Most common is the the FHA(Federal Housing Authority) loan. The federal government knows that first time home buyers are good for the local and national economy. In some cases, you can get an FHA loan for as little as 3% down.
FINANCING!! There are many great programs for the first time home buyer. Spend TIME talking with a loan officer. This is a very important first step. Let them tell you what price range you can afford. It costs nothing to check and there are many reputible lenders in the South Sound area. Use your Realtor to help you find a good and reliable lender.
The best and safest investment is purchasing a home, even in today’s market.
$7500 First Time Homebuyer Tax CreditIn our quest to continue to provide excellence to you, please find below the key points of the First Time Homebuyer Tax Credit that became lawthrough the H.R. 3221 Housing and Economic Recovery Act of 2008. Please feel free to contact me should you have further questions. If thisinformation is not applicable to you, feel free to pass it on to your friends and family. We appreciate your trust.Feature H.R. 3221Housing and Economic Recovery Act of 2008Amount of Credit Ten Percent of the cost of home, not to exceed $7500.Examples: If a home costs $65,000, the allowable credit would be $6,500. If a home costs $120,000, then the allowable credit would be $7,500.Eligible Property Any single‐family residence (including condos) that will be used as a primary residence.Refundable Reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.Individuals should consult a professional tax advisor for exact tax calculations.Examples: If an individual’s actual tax liability was $5,000, then after the tax credit is applied the purchaser would receivea total refund of $2,500. The refundable amount is the difference between the $7,500 tax credit and theamount of one’s tax liability. If an individual’s actual tax refund was $2,000, then after the tax credit is applied the purchaser would receivea total refund of $9,500.Income Limit Individuals whose Form 1040 filing status is single (or head of household) are eligible for thetax credit if their income is no more than $75,000. Individuals who file a joint return may haveno more than $150,000 in income. Individuals with incomes between $75,001 and 94,999(single) or $150,001 and $169,999 (joint returns) are eligible for a partial tax credit. Individualswith incomes greater than $95,000 (single) or $170,000 (joint return) are not eligible for this taxcredit.First‐time Homebuyer Only Purchaser (and purchaser’s spouse) may not have owned a principal residence in three yearsprevious to purchase.Recapture A portion (6.67% of credit) is to be repaid each year for 15 years. If home is sold before 15years, then remainder of credit is due in the year of the sale. If a homebuyer claims the $7,500 credit in 2009 on their federal income tax return for a closing that occurredin 2008, then the credit is received in 2009, so repayment begins in 2010 with an annual repayment amount ofapproximately $500 a year. If the homeowner dies, their heirs do not have to pay back the remaining balance. If the house is sold before fifteen years have passed and the home’s appreciation is less than the amountneeded to be to paid back, the loan is forgiven. If the home is turned into a rental or investment property, the pay back balance is due in that year.Effective Date Purchases on or after April 9, 2008 until July 1, 2009
