Great information for first time home buyers. For more information on debt relief and debt consolidation go to www.Delraycc.com

A home is not just an investment but a personal joy and a stronghold that brings a sense of security to you and your family.

The good news is that the American Government has sanctioned $200 million for grants each year for the coming four years to low-income groups who want to buy their first home.

This certainly makes the castle in the sky closer for those who dream of buying their own home and are unable to do so because of the heavy initial down payments in the process.

Government Grants For First-Time Home Buyers

The Government has launched the American Dream Down Payment Initiative Grant for which it has tied up with banks to facilitate this process in order to boost the country’s economy by allowing more fluidity in loans to first time home buyers.

One of the best things that have come out of this is that there is no window for getting cheated because the state and federal agencies are the most credible people you can literally speaking, bank on as compared to any realtor or predatory loan shark.

Now, not only has the problem with the initial finance been obliterated but the interest rates with banks are also touching rock bottom and all financial assistance professionals are urging you to benefit of this wonderful opportunity.

Once you are in possession of your own home the equity in it can be the source of making the next down payment.

As this facility is not available to you if you are a first time home buyer and you don’t have any equity in property, the Federal Government has come up with this scheme of offering first time home buyer grants.

Not only are these grants a boon to making the payment but are also immensely practical in closing the mortgage.

In this case, even bad credit can’t be counted against you as you have not had in your own name any housing ownership within the last three years.

Tax Benefits

A substantial amount of tax savings can be generated through your mortgage interests too. If you are renting an apartment for a certain amount, the same amount when applied to your mortgage loan payment would result in a huge tax deduction as practically speaking, the preliminary mortgage payment is generally to cover up interest rather than actually paying off the loan and this interest is tax deductible.

If you are in the conventional 28% tax bracket with all the normal expenditure, this deduction could cause a major dent in your annual savings.

There are absolutely no issues and hang-ups and the only quantifiable point is that your annual family income should meet the stipulated minimum in order to receive the grant, which is calculated on the basis of income v/s dependents, the location of the home etc.

 However, not every state in the USA is offering this kind of a grant yet, though it is still possible to obtain a grant through federal assistance. It is important to note that each state has its own set of rules and regulations that apply to the grant program as instigated by the state legislature.

Why is this Free Money?

The government is labeling this money as free money because as there are no interests or monthly payments to be made it is virtually free, these funds remain mute as a second mortgage until they are repaid.

In other cases, they are simply forgiven like in the State of Wyoming; the government grant for first-time home buyers can be as high as $2,000 and is forgiven in the case that you reside in the house for a period of 30 years.

This differs in different states and some states offer a loan that turns into a grant after a certain period of time. Thus a loan calls for the amount to be repaid in installments even if it for a low interest rate.

However this is only a qualifying process for the mortgage and in most cases you receive a percentage of the mortgage amount making it all very easy in the long run.

Unmasking the Grant Availability

All this may be a little difficult to believe at first and reason dictates that this kind of money will be hard to obtain for the average seeker but in reality these grants are not highly advertised by the government and there are few sources that can give you the necessary data so the chances that you will have people queuing up outside these agencies and going away with pot loads of money is very, very slim.

Most of these agencies have not exhausted their capacity which simply goes to say that there is money available for obtaining that grant.

Lastly, a home is definitely high on the list of safe investments into the future as the escalation of prices for properties is constantly on the rise owing to growing population and economy that gives way to inflation that causes real estate investments to be stable if not a climber.

Now is the best time to take advantage of the extremely low interest rates and make good your dream of owning your home.

Rate Cuts and Grants for New Home Buyers

The seven-year high in first home buyer commitments showed the property sector would benefit from the government extending the increased grants until at least the end of 2009.

Don’t Bet your House – It Can Be Cheaper to Buy

A combination of slashed interest rates, increasing rents, falling house prices and generous first-home buyer grants means that for the first time in many years, buying has become an economical option.

By Jayashree Pakhare
Published: 4/20/2007

The World of Loans

One of the first steps towards settling down in life is to buy one’s own house. However, buying a house is not as easy as it was some fifty years ago. Real estate and the basic cost of living have increased by leaps and bounds.

This has brought loans and mortgages in the picture. People who wish to buy homes can always apply for a loan to quicken the process of getting their own house.

Taking loans for houses and real estates is a tricky situation. A little bit of research before settling for a home loan can save a lot of money and future heartburn. If the deal consists of a first time home loan or a first time home buy, one has to undergo careful consideration before taking any step.

If one isn’t careful enough, they may end up paying much more for the house than they had actually decided upon.

Government Grants

The American Government helps people to buy homes the first time. Under the American Dream Downpayment Act, people from the low-income groups will be helped by the American Government as regards the downpayments for their new homes. The government has earmarked $200 million for the project.

The government doesn’t charge any interest or any monthly charges for the same. These grants are pretty simple, with contribution requirements or seller necessities not coming in the picture.

The only thing required is for the family to have a stipulated income. Depending on your income, it may be necessary to have more dependents in the family to qualify for a Government Grant.

Further Simplicity

First Time Home Buyer Loans are hassle-free and easy. Such mortgages usually offer the lowest interest rates in the entire home loan market. These interest rates vary from institute to institute and case to case.

If the buyer has a bad credit report, you may have to pay more interest or even more downpayment. However, if the buyer have a clear credit report, things will be much simpler.

Steps towards First Time Home Loans

It is always suggested to select a mortgage lender before looking out for a home. In that way, the buyer should have a definite idea of the amount of money they will have for buying the new home. People are considered to be first time home buyers if they haven’t bought any property in the past three years.

It is always suggested that one should do proper research before taking such loans. The best way is to get all the relevant information over the phone, or visit the websites of institutions offering first time home buyer loans. One should also try and know the technicalities of buying a home, while making a systematic schedule of what financial resources the buyer has at hand to buy the house.

It is very important to be farsighted before opting for a first time home loan. The features and payments must be such that the buyer can handle them now and even in the future. Another important tip is to time the mortgage applications. If a person has a pre-approved loan, the entire process will be much more easier.

Firstly, they can handle any teething problems during the mortgaging calmly. Secondly, the banks will be more than willing to tell the prospective buyer exactly he or she should look out for and be wary about.

People wishing to apply for a first time home buyer loan have it easier as compared to others. There are many institutions online that will give the buyer all the necessary details. It therefore prepares the prospective buyer to decide on the terms and conditions at the click of a button.

Secondly, the prospective buyer can do a research about the lender, and clarify any doubts the buyer would have about the prospective lender.

Lower Mortgage Rates a Boon for First-Time Buyers

With 30-year mortgage interest rates hovering at 5 percent since mid December, she just couldn’t wait any longer to buy, said Landstrom, 25, spent months looking for her first house.

First Time Home Buyers and FHA Mortgages

One question that I’m asked most frequently from first time home buyers in my area (Macomb County MI) is how much money will they need out of pocket to purchase a home?

Good News for Home Buyers: Mortgage Guidelines Ease Up

If the unfreezing of credit is paramount to an economic rebound, the first signs of a thaw have appeared.

Your Home Loan Application

Today, depending on the type of loan that is most suitable for you, your credit score will determine the interest rate and fees your mortgage provider will be able to offer you. … The reason the focus will be on liquid assets is that this is where your funds for down payment, buyer paid closing costs and reserves will be verified.

Lease with Option to Buy. In this Market it Can Help

Lots of buyers need to sell a home before they can close on their next one. Some have good credit but can not qualify for the mortgage until their existing home sells. So a lease with an option works for them.

Home Buyers Underestimate Mortgage Costs

Home buyers underestimate mortgage costs in 50plus.com – The internet portal for Boomers, 50+ and Seniors with thousands of articles about health and money, travel, home and family, daily jokes, games and much more.

Firstly, you may need to repair your credit profile if it may have been damaged so that you are more appealing to home and mortgage lenders; secondly discovering a potential home seller that has common financial interests also helps greatly.

But after this, one of the most important questions is whether you have the necessary income to maintain the house after it has been purchased.

Before you buy your first home you should determine if you can afford the house.

If you begin viewing homes and find a desirable one, then when it comes time to look at your finances, you may think that there is no possible way you can afford it.

This may almost be a crushing emotional blow but you should not be discouraged.

Often there is another avenue that you may not have considered and instead of becoming sad about the initial bad feelings you should try again.

At this point, many potential first home buyers simply give up and think that it can’t be done for them.

But before totally abandoning the possibility of buying that first house, here are some points you should consider prior to concluding that house is not possible for you.

You may be surprised at how these small suggestions can help you in big ways.

One of the first things always suggested is creating a budget. Virtually no one likes to set a budget, but you should seriously consider doing this.

This will determine the money coming in and what you are paying out for daily living expenses and bills.

You need to know the amount of money you have to make payments on a home. Keep in mind that this number may include what you already pay in rent.

This will determine to a significant degree what you can afford when you decide to buy a house of any form.

One almost easy part of assessing your budget is to track your monthly bills and income. Generally, these are similar each month.

The hardest part of the budget tracking involves what you spend at any store and this includes purchases for items bought over the Internet.

You can use software programs to track your debit and credit card transactions or record them manually, but either way, it effectively makes it easier to find out where you are spending your money.

If you use credit cards to make purchases, you should track how much you are spending each month.

Is it greater or less than your potential monthly payment? The most difficult part of your budget is to assess cash based transactions.

You should retain all of your receipts or otherwise you won’t know where the money goes. Do this for one month and save all your receipts.

Once you have them in hand and review them, you may be quite surprised at how much you actually spend. After this, decide what items can be eliminated or reduced to allow for savings.

A home budget analyzer is a valuable tool that is virtually necessary.

This can be done using a simple spreadsheet and does not take much time to update every other day or even weekly.

Once you have this information in hand, the potential lenders you may encounter will appreciate this and be more receptive in you having prepared yourself.

Most potential lenders may only wish to know if you have sufficient funds for a down payment and can afford the initial series of mortgage payments.

Once they are satisfied with this, the remaining financial obligations are left to you.

An additional spreadsheet or personal financial profile will help in providing them with information about your personal assets and liabilities.

But this is not enough, because you must be weary that if they are providing you with the best deal, or simply attempting to earn their commssion.

The competition for your money is intense and you should not think that for even a moment that that they are attempting to do you a favor.

Rather, they want you money and may even provide you with a new Microwave Oven as a bonus.

So look around for a good rate or repair the credit rating you have before venturing into buying that first home or condominium.

In the not so distant past getting a free toaster was considered  acceptable, and for now at a bare minimum, a better interest rate is far more desirable.

Are Credit Scores Reliable Bases for Home Mortgage Loans?

Credit scores may already be obsolete and irrelevant as basis for evaluating people who are applying for home mortgage loans.

If you’ve thought about renovating your new home this year, the Canadian provincial and federal governments are ready to throw some incentives in.

Thinking about landscaping your yard, redoing a bathroom or installing hardwood flooring? For these and other home improvements, the Home Renovation Tax Credit (HRTC) will provide a one year 15 percent tax credit.

If you want to replace your furnace, install solar panels, install additional insulation or even replace drafty windows, the federal ecoENERGY program will provide rebates across a wide spectrum of energy efficient products and improvements, to a stated maximum of $5,000.

But wait, there’s more! The Ontario provincial government will also provide matching rebates under its Home Energy Retrofit program, so between these two programs, a homeowner is eligible to receive up to $10,000 in rebates.

Even better, you can dip twice and claim these energy efficient improvements under the HRTC program. This means that Ontario homeowners can receive up to $11,350 for a single home improvement project.

The Home Renovation Tax Credit

The HRTC provides a one year temporary 15 percent tax credit per family based on eligible home renovation expenditures for work conducted or materials acquired between January 27, 2009 and February 1, 2010. This tax credit on becomes viable after you spend $1,000 and no more than $10,000, which sets the maximum credit at $1,350.

There are a wide variety of projects that are eligible, such as kitchen, washroom and basement renovations, hardwood floors, carpet installation, heating system upgrades, water heater replacement, exterior or interior painting, driveway repairs, landscaping, decks, fences and even laying new sod.

But not everything is eligible, and this includes furniture and appliance purchases, cleaning of carpets, furnace or duct cleaning, removal of snow and pool maintenance.

EcoENERGY and Home Energy Retrofit Programs

While the HRTC applies to most home projects, the ecoENERGY and Ontario’s Home Energy Retrofit programs apply only to improvements related to energy efficiency.

Ontario’s program matches the ecoENERGY program by dollar up to $5,000 for a maximum of $10,000 for each household.

Some examples of improvements that qualify include adding or upgrading an energy efficient heating or cooling system, installing an instant hot water system, installing thermally efficient windows and insulation installation or replacement.

There is a downside to receiving this credit and that is because a homeowner must have an energy efficiency audit performed on their home. This is likely to cost anywhere between $300 and $500, but even so you may be able to receive a $150 rebate.

It is important that the energy audit be performed by an EnerCan licensed auditor. If you don’t verify this first, you will likely be unable to submit your bill for the potential rebate.

Any energy related improvements must be performed within 18 months after the audit is done, and the cut-off date is March 2011. Accordingly, the renovator must provide documentation related to improving energy efficiency.

Once performed a second energy audit is usually required (about $200, but no rebate) to confirm the work was performed properly. After this the grant application can be submitted and a federal rebate usually arrives within 90 days.

These Government Grants are for You!

This is your government, your money and you voted them into office. They are offering you some serious money. So why not take advantage of what they are providing.

After all, if you were already thinking about doing some renovations, why not get some of your money back from those that took it from you in the first place?

To find an energy auditor in your area or more info about rebates, visit:

http://ecoaction.gc.ca/homes
http://homeenergyontario.ca

Purchasing your first home can be very exciting and yet at the same time, be very frightening too. One of the first things that 1st time homebuyers are concerned about is how are they going to maintain their outstanding credit rating or how they will repair their credit rating once they purchase the home.

This is a great concern to the 1st time homebuyers because most of them do not have enough to buy the house upfront and as a result, they have to takeout a loan from a bank or some other financial institution for the mortgage.

The problem is with a combination of high interest rates, along with the typical living expenses as well as taxes; a lot of people are struggling in terms of keeping up with the bills.

The majority of 1st time homebuyers end up deep in debt and this is a serious issue for most of these people.

It’s true that one of the biggest causes of stress is financial debt.

Be Wise

Regardless of whether you have good credit to begin with or not, the last thing you want do is to worsen your credit rating. Here are a few important steps that you can take. The very first thing you should always consider is to live below your means.

Far too many people in society today are trying to keep up with the Jones.

Spending money on things they shouldn’t be buying or not having a tight rein on their budget. That being said, determine what your income is and how much of a mortgage your income will support.

Do not stretch yourself financially. Always remember there are additional costs when purchasing a home such as, renovations and repairs, as well as new furniture too.

Choose a Mortgage Type

Also as a new home buyer, you will have to decide if you want an open or closed mortgage. The advantage with an open mortgage is that you can repay the loan off any time during the term of the mortgage.

Even though you can pay off your mortgage faster with an open mortgage, the interest rates are generally higher with these mortgages. This is something you have to take into consideration.

With close mortgages, they have a longer, set term and limited prepayment options. When compared to an open mortgage, there is less flexibility, but at the same time you are gaining in terms of a lower interest rate.

As well, the rate will always remain the same so you don’t after worry about rising interest rates. Nothing is more stressful than to see your monthly payments go up sharply and unexpectedly.

Save Your Money

As an initial home buyer, it is wise to put down as much as you can as a down payment. The more that can put down on the property, the smaller the mortgage you will have to finance and the less anxiety you will experience.

It’s also a wise idea to try to save some money in the bank for emergency situations. With that extra money, you can also pay down the mortgage faster if the opportunity presents itself.

The US Congress wants to help you buy a house to live in.

As you read every word of this article you will discover why the government is offering first time home buyers an amazing incentive to buy a home. You will also learn four reasons why this may be the best time ever to enter the home buying market.

President George W. Bush signed into law the Housing and Economic Recovery Act of 2008. This newest act for the weakened housing market is a reaction to the SOS being sent out by plummeting home prices.

Included in this Act is the temporary tax credit for first time home buyers. If this describes you, be sure to check out the incentive.

One of the most intriguing features in this Act is the temporary tax credit for qualified first time home buyers.

The $7500 tax credit amounts to a dollar for dollar reduction of what the taxpayer owes. Even though you may owe taxes less than the credit, you will still get the difference sent to you by the government.

Here are some of the details.

The tax credit is for first time home buyers only. But don’t quit reading simply because you owned a home in the past. The government has its own definition of first time home buyer.

According to the government if you haven’t owned a home 3 years prior to the purchase of your next home, you qualify as a first time home buyer.

If you are like me, you are probably skeptical when the government wants to give you something. Is there a catch? There is. Keep reading and by the time you reach the end of this article you will know what it is.

My first question regarding the tax credit qualifications was what kind of home can I buy and still receive the credit? Can I buy a new home? The answer is yes. How about a resale home? The answer is yes again.

I began to think this was starting to sound pretty good but before getting too excited I thought I’d better check out some more details.

The maximum credit amount is $7,500. The government wants to credit you $7500 for going out and buying a house. Why? Is it because they are a bunch of really nice people up there in Washington DC? Well, I am not going to answer that question but the US Congress has a definite reason it wants you to buy a house soon.

Here is why this first time buyer credit is important to all of us and may be something you want to take advantage of.

This recent downturn in the housing market has been brutal for many homeowners. Real estate values have fallen. Credit has tightened. Less money is available for homeowners and home buyers. So the government is helping the market get its footing by offering incentives to home buyers. The tax credit to first time buyers is one of those incentives.

To qualify for this government incentive you need to act soon. The offer which began on April 9, 2008 is not open ended. If you want to own a home this may be your window of opportunity but you must act before July 1, 2009.

Most likely we are seeing the formation of a bottom in the housing market. House prices may retreat a little more before we see an absolute national bottom. But in several cities and metropolitan centers, real estate values have remained steady.

If you are a first time buyer you have a lot of things going for you.

First, home prices are low. You may never see such affordable housing again. Prices have slid for now but the fact remains that as long as the United States continues to grow and prosper, the value of our homes will increase over the long term.

Second, interest rates are also low. The last time that we had this type of housing crunch was in 1979. The market conditions were very similar to today except for one thing. Interest rates were high. In fact mortgage rates skyrocketed as high as 18%. Compared to that market, today’s interest rates are cheap.

Third, the cost of homeownership becomes even more affordable for those who itemize income tax deductions.

Fourth, the government is offering you money in order to motivate you to buy a home.

You can qualify for this tax credit up to the full amount if you are a single tax payer with an income up to $75,000. Married couples are allowed $150,000. But you can qualify for partial credit even if your income exceeds the limits.

Now here is the catch I mentioned above. The tax credit works like an interest free loan and must be repaid over a 15 year period.

Essentially the tax credit is a tax free, interest free loan from the US Government to help make buying a home more affordable. The only thing the government asks is that you return the money over the next 15 years or when you sell the house.

Not a bad deal!

Home Buyer Tax Credit Information

Those reading here over the past week know we’ve been obsessing over the about-to-become-law tax credit for first time home buyers. Several iterations were bantered about Congress before the dust finally settled.

First-Time Home Buyer Tax Credit Will be $8000

If you are a first time home buyer in Columbus and you purchase a home before December 1, 2009, you will receive an $8000 tax credit. If you have already.

Stimulus Package Modifies First-Home Buyer Tax Credit

According to the NAR website, the bill provides for a $8000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

The Homebuyer Tax Credit

The Senate has apparently kept the $15000 homebuyer tax credit in the stimulus package. The tax credit sponsors, Senators Johnny Isakson and Joe Lieberman, estimated the cost would be $18.5 billion.

$8000 First Home Buyer Tax Credit in 2009 Economic Stimulus Plan

Unfortunately certain tax breaks, including the homer buyer tax credit, were scaled back to $8000 (from the proposed $15000) to get sufficient support for the stimulus bill’s approval. This is $500 more than the current home buyer tax.

For additional secrets to buying a home with US tax credits, discover why FHA home loans are your key to homeownership.

As always, consult your financial adviser for more information regarding this program and your own personal financial situation.

Good Luck.

In addition to that interest rates on mortgages are low. This is still likely the biggest investment of your life and you don’t want to make a mistake. It can take between 30 to 90 days for the entire purchase process, although timelines vary according to individual buyer and seller circumstances.

Get a Pre-Approved Mortgage First

Most realtors will not show you homes unless you pre-qualify, so they know that you are serious about buying. Gather past 1040s, bank statements, credit account numbers and determine how much you have for a down payment.

Your realtor can give you a ballpark figure for the type of mortgage you will qualify and can steer you to a mortgage broker.

Once you get a pre-approval status from your lender of choice, they give you a Loan Status Report (LSR). You can then determine what price range of homes to consider.

If your lender pre-qualifies you for monthly payments you are not comfortable with, buy under that amount. You are the one that has to make that payment each month.

Start Looking at Homes Available for Purchase

Many people begin their search on the internet. You can save a lot of time by doing some research. Some people like to drive through their preferred neighborhood to see what is available.

Be careful of  ’For Sale by Owner’ properties, many of these owners have unrealistic expectations of the value of their property.

Once you have narrowed down your search, it is good to contact a realtor who can help you evaluate your choices and make an offer.

They will know what comparable properties in the area have actually sold for, not just the list price.

Make an Offer to Purchase

You submit a contract to the seller stating the amount you are offering along with the LSR so that they know you are serious. The seller may counter offer.

Once both the buyer and seller accept the offer both sides are obligated to follow through. It is always contingent on the buyer getting their loan. Your realtor will monitor the process until closing.

Money Down, Home Inspection and Appraisal

You must put down earnest money and then begin the application for the loan. There will be a home inspection which can be paid for by either the buyer or seller depending upon the terms agreed upon.

It is still possible to back out if the home inspection finds a problem that you and the seller can resolve. The lender requires an appraisal to make sure that the house has enough value to cover their loan should you default.

Once the lender gives final loan approval, you are ready for closing.

The Closing

You will get to have a final walk through to make sure everything is the same. Then a title company prepares all the documents for the signing of both parties. The title company oversees all the document signing and delivers the title to you, the new owner.

Move-in can be immediate or up 30 days depending on the agreed dates between buyer and seller.

Are Home Buyers Starting To Kick The Tires?

The $787 billion dollar economic stimulus plan becomes law today and includes an $8000 tax credit for first-time home buyers. The plan also includes tax credits for current homeowners that choose to make their homes more energy efficient.

Is It Smart to Buy a Home in This Recession?

Tips on saving and investing, dealing with debt, managing credit, and excelling in your career and your life.

First time home buyers are in the exciting position of both choosing a home and making one the biggest investments in life.  But are realtors necessary?  I hear this question a lot from first time homebuyers.

They wonder why they can’t just peruse open houses and visit new developments where realtors are just sitting there waiting.  Well, that opens the first can of worms for first time homebuyers.

Realtors usually work as either buyer’s agents or seller’s agents.  That friendly realtor at the open house only represents the interests of her clients (the sellers.)  That’s why I tell any first time homebuyer to team up with a professional realtor who knows the things that you don’t.

Tap Into Their Knowledge

Anybody can buy a house.  But all the unknowns typically overwhelm a first time homebuyer.  The great thing about working with a realtor is that you get an “instant guru” for all you questions from finding good schools, to how much less a seller might take, to “what is PMI again?”

Once you decide to work with a realtor, let them really work for you.  Realtors can eliminate many homes based your requirements, so that you spend less time looking at inappropriate ones.

List your desired amenities and priorities so that your realtor really knows what to look for.  Good realtors listen. You shouldn’t have to tell him 4 times that a second bathroom is a must or that you need a double car garage.

Where to Find Competent Realtors

Realtors are everywhere.  Ask for referrals from people you trust. Interview potential realtors before making up your mind. Ask about their background, client load, experience and availability.

Then grab you digital a camera and a notepad, call your chosen realtor, and have fun buying your first home.

The best realtors will honor your time schedule and when you are available to look at sites. Realtors can also give valuable information about movers, local amenities and things to do, even local doctors if you’re new to town.

Remember, in addition to having professional knowledge of the real estate game, your real estate agent will be familiar with the local area. Ask lots of questions, and expect lots of information in return.

You will find that the mountains of paperwork go more smoothly if a realtor guides you through the purchase agreement. The legalities of buying a home are enormous, but competent realtors make sure you don’t skip the inspection, or spend all your time driving around an area that’s out of your price range.

But what about the price range? One of the biggest concerns that new buyers have about hiring realtors is paying the commission. After all, is it really worth it to pay realtors when you could have that money available for your new home?

Weigh this decision carefully. Don’t nickel and dime yourself out of competent advice. Especially if you have never navigated the paperwork and legalities of a real estate transaction, one of your smartest moves can be to include a realtor on your house hunting team.

First Time Home Buyer Tax Credit

A tax credit for first time home buyers is part of the Housing and Economic Recovery Act of 2008. The maximum amount of $7500 is a one-time-only tax credit, so it reduces your tax bill or adds to your refund dollar for dollar.

Tax Credit for First Time Home Buyers

Did you know that you may be eligible for the First-Time Home Buyer Tax Credit that is part of the Housing and Economic Recovery Act of 2008. This tax credit is designed to encourage first-time home buyers to purchase their first homes.

First Time Home Buyer Advice

In one information packed hour, you will learn If you should buy a home or rent (buying a home is not appropriate for everyone’s lifestyle). If you qualify to buy a home, what price you qualify for How much money, if any.

The first time home buyers’ tax credit for Canadians is a non-refundable tax credit that can reduce the amount of federal tax owing up to a maximum of $5000.00 or based on minimum income, more likely $750.00.

The home purchased must be in Canada and it makes virtually no difference what type of home it is, such as a detached dwelling, condominium, townhome, or even a mobile home.

The home must be registered in the name of the person or persons claiming the tax credit and the new buyer cannot have owned a home in the 2011 tax year and for the past four years.

Those with disabilities that present physical challenges can also claim the tax credit or even those who are buying a home for a relative with physical challenges.

The restriction is that the residence must be equipped with devices that enable a disabled person to perform functions more easily, such as wheelchair accessibility, enhanced bathroom features and other similar help aids.

The Government of Canada can help you save on your taxes. To learn more about the First-Time Home Buyers’ Credit and if it applies to you, visit www.cra.gc.ca.

This informative video presentation outlines the recommended steps that first time home buyers should take, including what programs are available. This includes helping new home buyers learn about obtaining the best home mortgage, tax credits, grants, engaging real estate agents, down payment assistance programs and other useful information.

This brief mortgage minute video is addressed mostly to first time home buyers and answers the question “Should you buy a home that is being sold short?” This occurs when the owner owes more to the lender of the mortgage than the actual appraised value of the home.

As an example, consider a home you are interested in as a new home buyer that is listed at $150,000. However, the present owner owes almost $200,000 to the mortgage provider (e.g. a bank). Before you can purchase the house, aside from you, both the bank and the seller must agree with selling the home short, or at a loss.

Two almost funny guys share four important tips for first time home buyers. These are: using a realtor, buy the home considering that you will sell it in a few years, get a home inspection, and contact a mortgage specialist to get pre-approval.

They also provide links to other videos such as:

• Should I Buy a Home Now?
• Can I Buy a Home After Bankruptcy?
• Tips on Finding a Good Listing Agent
• Mortgage Myth Busting
• How to Find a Great Buyers Agent
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Video answering the questions “How do I file for the First Time Home Buyer Tax Credit?” and “Can I use the First Time Home Buyer Tax Credit as a down payment?” In posting quite frequently about the tax credit, I had noticed that there were still many questions out there, so I thought these two answers might help many buyers thinking of purchasing a home in San Antonio (and elsewhere) and wondering about the tax credit.