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.

realestatemarketingthisweek.com – $8,000 tax credit for first time home buyers with low down payment – Part 3 – We have back in the studio today Mr. Dan Havey.

Dan and I have worked together in the mortgage industry for about 14 years and we are happy to have him back. He has seen a lot of changes in the market and thanks again for being here.

Michael, here is a question I wanted to ask you, there is so much misconception in the marketplace today as far as what is still available for financing. I think a lot of people have this idea that it is impossible to finance a loan or get a mortgage or that you have to be able to put 20% down or have a 720 FICO score.

Can you let people know whats really going on out there? Well you know a lot of things have gone away. There are a lot of those old loan programs that were fancy ways to sell money and finance real property and a lot of thats gone.

The reality of it is, if a person has a minimal amount of money down, there is absolutely financing through the Federal Housing Administration with 3.5% down. You can buy up to about 8000 with only 3.5% down.

Now with Fannie Mae and Freddie Mac, we actually do have a few investors that will allow us to only put 5% down with those and that loan amount maximum is 7000. So there is still plenty of financing for primary residences.

Channel 4 – WSMV-TV in Nashville – did a story about the $8,000 first time home buyer tax credit/incentive. Reporter Deanna Lambert interviewed Kathy T. for the piece. You can see the piece linked directly through the news station [www.wsmv.com or watch right here.

Visit www.easydenverhomesearch.com if you were waiting for the Denver housing market to bottom out, we might already be there. Also Sam Wilson gives you a couple tips on how to qualify for the $8,000 first time home buyer tax credit.

Follow the adventures of Bob and Sally as they learn all about the Washington State Housing Finance Commission and the programs it offers for home buyers.

First Time Home Buyer Tax Credit Assistance and Federal Government Home Loan Program with Low Down Payment on FHA Mortgages. Buy Bank Foreclosed Homes at a Discount. Go To RealEstateMarketingThisWeek.com Part 2 (Excerpt) The median income family can afford twice the median priced home; prices drop over 50% And now I mentioned Dan Havey is back in the studio with us, Dan has done a lot of great things in the mortgage industry. He left us about a year and a half ago, is that right Dan? Yes, I left the mortgage industry in October of 2007. Tell us a little bit more about yourself. As you know I came originally from Wisconsin, where I got a degree in Business Finance and I came out here in 1989 and started working with my brother selling real estate owned-REO, bank owned properties for Fannie Mae, Countrywide, and the Resolution Trust Corporation-RTC which was the government entity that was put in charge of disposing of all the real estate owned by the 1800 S&Ls that had failed. I did that until about 1995 when I moved into the mortgage industry and there for 12 years I worked predominately with bankruptcy attorneys helping their clients get out of bankruptcy and foreclosure. I left the mortgage industry in October of 2007. Now I am working predominately in the arena of marketing for real estate and mortgage companies, helping out companies, just like Im here helping out Michael today, to get people to realize that right now actually is a really good time to buy.

Each month, This Month in Real Estate provides expert opinion and analysis on real estate trends across the nation.

For many first time home buyers, this will be the largest investment of their life. But there is no disputing the fact that buying a home is a sometimes an emotional process because of the amount of time and paperwork that is normal with any home purchase.

Even if you are just venturing out to look at homes or if you already know what you prefer to buy, purchasing a home requires some research and effort.

Any time that you spend in the preparation is worth the effort because it will help both the lending and closing processes proceed smoothly.

Before you ever contact a mortgage lender, you need to go ahead and get a copy of your credit report. After you get a copy, double-check it for any errors or potential problems.

If you discover an error, you need to contact the creditor to make sure that erroneous items get fixed on your report.

Even if you have a low credit score, it does not mean that you cannot get a home loan, but you may have to pay a higher interest rate.

Organize your Efforts

After you have determined which lender you would like to deal with as well as the mortgage rates you anticipate getting, your lender will request a Verification of Employment form. What you can do is ask your human resources department to keep an eye out for this form.

Then you can rest assured that your very important document is not simply buried in in a stack of mail or on top of a fax machine. If human resources is expecting the document, they are much more likely to complete it quickly.

You will also need a minimum of one month’s worth of pay stubs or payment records from your present employer. Make copies of these and retain the originals.

Find the most recent W2 forms that your employer sent you for the last two calendar years. Your lender requires these wage and tax statements from you as well as from your spouse or other person with whom you are applying for the mortgage.

Find your federal tax returns and make copies of the documents. Use the two most recent years of tax returns if you have not yet filed your return for the the just-past calendar year.

Gather All Necessary Documents

There are more pieces of paperwork that your lender is going to need. Most lenders want at least three months worth of checking or savings account statements.

Also bring copies of any assets like retirement accounts, stocks, bonds, mutual funds and so forth.

Your lender is also going to have to confirm your identity, so that means that a copy of your driver’s license or passport is also needed.

The final thing that you need to do is to make a financial inventory. Calculate how much debt you owe and make a list of each account.

This includes all loans, other real estate purchases and credit cards. Your lender will ask for copies of statements of all of these accounts.

You will also want to determine how much money you will have remaining after you have paid the down payment and the remaining closing costs.

A copy of your social security card is also required. Gathering all of this paperwork really is the difficult part, so being proactive in gathering the necessary documents is of great benefit.

Tips for Choosing the Right Mortgage Lender

A decision that is almost as important as which house to buy is which mortgage lender to use. It is important that the entire transaction is handled efficiently and professionally.