Ok, first time home buyers; this is a reminder that the $8,000 dollar tax credit is only good until Dec 1st, 2009. So you need to purchase a home by that time and if we do the quick math, it looks like you have about 6 months to get that done.
Letâ€™s go over how the program works: First, if you havenâ€™t owned a home for at least three years, you qualify. Second, you need a credit score of at least 620 and if you go with an FHA loan, all you need is 3.5% of the purchase price for a down payment. Combine that program with incredibly low interest rates and home prices and this really is a good opportunity to get into your first home. One other note about the program is that the IRS will send you a REFUND this year for homes that close between April 9th and December 1st 2009. You can actually get a check in the mail for $8,000 dollars. You can also amend your 2008 return and collect the tax credit/check this year.
Now I know what youâ€™re saying, â€œThe tax credit/refund is great, but I am not buying my first home because I am afraid of losing my job, my credit isnâ€™t so good, or I donâ€™t have enough money for a down payment/closing costs.â€ Well you are not alone. As I speak with first time home buyers, those were the exact three obstacles that prevent them from taking advantage of this offer.. So letâ€™s address each problem and see how we might be able to overcome each obstacle.
First, credit can be repaired and in some cases, in 30 days or less. So see a qualified lender who can help you clean up your credit report. Not every lender specializes in credit counseling so be careful who you speak with.
Next week weâ€™ll tackle the second and third obstacles mentioned above and talk about possible solutions.