Benefits of the first time home buyer credit
Have you been thinking about buying a new home? Well now is the best time ever especially if you are a first time home buyer. House prices are at an all time low and even better, you will receive eight thousand dollars thanks to the first time home buyer credit when buying a new home. An eight thousand dollars discount when buying a new home is a thing to be happy about no matter the situation. The government is helping first time home buyers by allowing them to use the first time home buyer credit to make a down payment on their future home. Also, first time home buyers benefit not only out of this interest free loan, but also of the 15 years they have at their disposal in order to repay the loan.
History
This first time home buyer credit helps first time home buyers to come up with the down payment that until now was a very big problem. It also stimulates home sales; it helps stabilize the housing problem and even helps the economy.
For first time home buyers to be able to benefit from the new first time home buyer credit decisions, they are supposed to buy their houses through the following agencies or lenders:
• Lenders that have FHA approval;
• Local, state or federal agencies;
• Non-profit organizations approved by the FHA.
Features
A short-term loan is received when buying your home through these agencies or lenders. It’s called a bridge loan and it amounts to eight thousand dollars. The total amount of this short-term loan is proportional with the price the house will be selling for and thus it will always be equal to the sum of money a buyer can expect to receive from the first time home buyer credit.
One must be careful though, because this credit doesn’t apply to those that have owned a house in the past three years. That counts for the spouse as well. If you intend to buy the house together with a parent or children, the first time home buyer credit applies to the party that is a first time home buyer. You also have to intend to live in the house you buy to qualify for this first time home buyer credit. Also, income limits have been established for the first time home buyer credit. If the person earns more than seventy five hundred thousand dollars a year (as a single) or one hundred fifty thousand dollars a year (as a couple) he cannot apply for the full credit.
Tips and comments
A large variety of real estate is covered by this first time home buyer credit, not only single family homes but also mobile homes, condos, townhomes or new construction.
More information regarding the process of accessing the first time home buyer credit funds are expected to be released soon but all in all, this credit is a good way to reduce some of the expenses when buying a new home. Anyway, this first time home buyer credit will encourage people to take that first step in acquiring their dream homes and giving people this opportunity is all that matters.
