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.
Don’t hesitate to shoot Lane a message if you have any questions, or need any help. And check out the new links for FREE Property Searching, FREE Comparative Market Analysis and FREE Market Reports. They are near the top of the page…
