Almost like free money…
Posted By Lane Bailey on November 21st, 2008
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.
from LaneBailey.com
