The Importance of Frist Time Homebuyers

The recovery of the real estate market depends on first time home buyers.  Not only do they represent a large number of sales, but without them there would be no move-up market.  Current homeowners would not be able to move-up if they can’t sell their current homes.

HUD now says that first time homebuyers who qualify for the federal tax credit can apply as much as $8,000 to the down payment when financing a home with a FHA loan.  FHA currently requires that buyers make a minimum down payment of 3.5 percent of the sales price of the home…this means that a first time homebuyer can borrow as much as $228,500 and buy with no money down!

Four important things to keep in mind:

1. You don’t qualify if you have owned a home during the three years before you plan to purchase.
2. You must close before December 1, 2009
3. Your income must not exceed $75,000 if single and $150,000 if married.
4. You can’t use the credit against the down payment from just anyone, it must come from state housing agencies or certain non-profits.

If you are a first time homebuyer the time to act is now.  A closing by December 1st, 2009 means you ought to have a contract written by November 1st, and to write a contract you ought to begin looking for homes in September and October.  Even if you were to follow this schedule you may still be cutting it close.  ACT NOW and contact us!