Finance Credit

First Time Home Buyer Credit Qualifications

Published at 07/15/2011 10:13:55

One of the efficient ways to own a home is to be a credit home buyer. Purchasing a home could be a great investment for anyone who wants to enjoy the fruits of their labor. Buying a home without credit would be too much to bear for regular citizens. The best way to own a home is through this approach. There are several factors that are involved to qualify for purchasing a home through this process.

For the first time credit home buyers, you must be qualified in order to obtain a home through such program. Eligibility is a must for these cases. The IRS and lenders would basically investigate if the buyer has not made any home purchases for the past three or four years. For married individuals, the government would also require the same eligibility requirements from the spouse. The home must not also be purchased from a direct relative for both couple if the buyer is married.


There are limitations with these procedures as well. A buyer could only purchase a home with the amount below eight hundred thousand dollars. Houses that have higher value amount are ineligible for this credit program. Individuals with annual gross income above one hundred forty-five thousand dollars are also not included in the list. The individual’s track records are very essential in this plan. Ensure that your annual gross income would be appropriate for the needs of the qualification of such program.


Houses to be bought must also be single-family houses. This virtually means that larger homes or duplexes are not allowed for this credit program. However, houses such as apartments, beach homes, and boat houses are qualified for the specific arrangement.


Lenders would also check the credit and rental history of the buyer. The majority of these lenders would only allow individuals that are capable of paying bills on time. Late bill payers are often rejected by several lenders. Credit card bills are required to qualify for this program. If you are planning to venture in this, then it would be ideal for you to pay your debts on time. Try to settle your debts, and avoid any late payments.


The annual gross income must also fit to the requirements of the lenders. There is a standard debt to income ratio that the buyers must follow. Your previous debts, along with the accumulated annual payments of the house, should not exceed more than forty-two percent of the expenses of your annual gross income. It would be advisable to settle some of your debts first before buying a home in order to qualify immediately.


A regular loan of such plan would often require ten to twenty percent down payment of the projected house price. Some lenders would allow only three percent down payment. If you are planning to apply for this plan, then it would be ideal to secure the computed cash for down payment before buying the house.

A home is one of the basic needs of everybody. Buying a home is certainly much better than renting a space. There are investments that could be very useful in the future. Purchase a home and be a credit home buyer to be able to acquire such investment.

Tips and comments:

Being a first time credit home buyer needs a lot of preparation. You need to know your options, determine your position, and find the best deal. Shopping around, you will certainly be able to locate a company the offers the deal most suitable for your lifestyle.