I didn’t say it WAS free money… but the next best thing.

There are two three things that I want to bring up…

• The Federal Government is trying to spur home buying and the tool that they are using a $7500 “tax credit” for first time home buyers.  It is cool, but there are a few things that need to be disclosed.
• Ken over at Novation Mortgage has found a source for 95/5 loans for decent borrowers.  That means that some buyers are able to get 100% financing.
• I have come across some properties that are exceptional deals… and a couple of them have closing costs paid by the seller.

The First Time Home Buyer Tax Credit is an interesting thing.  It is a refundable tax credit, but isn’t necessarily a credit.  It is for First Time Buyers (and people that haven’t owned a principle residence for the last three years)… and it is claimed through tax filing.  But, it isn’t really a tax credit.  It is more of an interest free loan.  Basically, it has to be paid back over 15 years (that would be $500/yr.) or when the home is sold.  If the home doesn’t appreciate enough to cover it, then it is forgiven.

The bottom line is that if you are a first time home buyer, this might be a good time to get into the market. There is a LOT of inventory.  There are some great deals… some not so great deals… but there are a few that are outstanding.  There are some good loans at great rates.  There is a $7500 credit for some buyers.