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Finally you can use the $8K Tax Credit for Down Payments
First time home buyers can now use their $8,000 tax credit to buy their home -- giving them 100% financing for their FHA loan.
A special pilot program has been launched by a not-for-profit that will allow buyers to borrow their 3.5% FHA down payment. It is expected that the buyer will use their $8,000 first time home buyer credit to repay the loan. This program conforms to FHA rules.
But time is of the essence. There are only a few spots available for buyers in this pilot program. We are one of the few lenders that were invited to participate in this pilot.
Remember, to get the $8000 tax credit, IRS rules say buyers must close by November 30, so only consider making offers on properties that can enter into contracts in the next few weeks (i.e. no initial offers on short sales!) and can close by before December.
There is a charge to the seller of $995 for this program (paid to the not-for-profit at the closing) so the seller will have to agree to this in their contract.
Buyers will need reasonable credit (higher 600s score) to qualify. They will also have to meet all the usual requirements for the First Time Homebuyer Tax Credit.
What to Know When Buying Your First Home
You’ve made the decision to make one of the largest investments you’ll ever make in your life: buying your first home. You’re excited, but at the same time anxious. Some of the questions you may be asking are: Will I be able to afford the home of my dreams? Do I have enough money for a down payment? Is my credit good enough?
Rest assured, you are not alone. The home buying process can be overwhelming for anyone, but if you go into it prepared, your first purchase can be a great experience. Here are some things to consider before making the purchase.
Getting a Mortgage
Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, we will get you pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage when there are multiple offers for a specific home. The fact that your loan has already been approved is of great value to the seller because it shortens the purchase process, and there is less of a chance that the buyer will back out of the sale.
Mortgage Payments
The costs involved in the purchase of a home can be overwhelming to first-time buyers. However, with the help of a professional, you can calculate out how much you will be able to pay each month in mortgage payments, and from there, what prospective homes offer a feasible payment plan.
Down-Payment
The down-payment amount varies depending on the value of the home you choose and the loan program that you qualify for. Using Government programs (click on the Government Loan Programs button to the left) you may be able to buy your home with zero down to 3.5% down. First-time buyers often forget to consider the closing costs when making an offer on a home. These programs allow the seller to pay the closing costs for you -- if you negociate that as part of your offer. However, a smart first-time buyer takes this into account before making an offer, and with our help, the costs can be estimated in advance.
As your Loan Officer, I will give you the personal attention you deserve and treat you with the respect due a valued customer. I understand you're making a commitment in buying a new home, so I make a commitment to you. I will help you qualify, apply and be approved for the right mortgage loan for you. Not anyone else!
Please navigate my website to learn more about me, what Hometown Lenders can do for you, and how easy it is to get started.
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