First time home buyers MUST READ THIS...

[Firehawk1120]

Ok as a realtor I can't tell you how HUGE this is for first time home buyers. IF you didn't already know last year there was a $7,500 tax credit if you bought your home but it was a low interest loan that had to be paid back over 15 years.

The NEW plan allows a claim of $8,000 or 10% of the home's value, whichever is less on 2008 or 2009 taxes.

Now this is limited to singles with an income of $75,000 or couples under $150,000.

You must be either a first time home buyer or not have owned a home in the past 3 years. So unfortunately it doesn't help those already in trouble.

Basic understanding is if you paid your taxes and owe $0 to uncle sam you get $8,000 back if you purchase a house this year. If you owe Uncle Sam $2,000 you'd get back $6,000 or if Uncle sam owed you $3,500 you'd get that plus the $8,000 so $11,500.

If this doesn't at least help get some potential buyers off the fence not much else will.

If anyone has any questions feel free to PM me.

Gene

[02Sweet]

with your exp. what is the lowest credit score needed to get a home?
Also what is the amount you need for down/closing money?
Just started doing my own research to find my first home and haven't talked to anyone yet

this credit is what made me start thinking about getting a home plus I cry when i write my rent check every month. my rent aint' cheap

[ssgtcarroll]

http://www.ls1.com/forums/showthread.php?t=106895

[Firehawk1120]

right now i'm under the impression that banks are looking for people with reasonable credit scores in the area of 650 or better. again, the lower your score the higher your rates is going to be because of the assumed risk.

As far as closing costs that is market specific. Here in NJ you need to have somewhere in the area of 3-5% as a downpayment. The problem we are running into is something called PMI which is mortgage insurance. if you aren't putting down 20% mortgage companies require you to pay an insurance policy payment as well and the PMI companies are now requiring people to pay more up front due to a term called DECLINING MARKET. if an area falls in this declining market classification then it's tough if you don't have a good amount of savings to get the loan approved.

I would suggest honestly talking to a local mortgage rep or an experienced agent in your area who knows someone that can do a pre-approval for you. most companies will do them for free so if they tell you they want to charge you to run your credit and do the pre-approval go someplace else. If you want to pm me I can get you a local agent to assist you if you tell me where in the country you live.

Gene

[ssgtcarroll]

I am 21 years old with a dept of about 9000 with the car payment. Make about 32k a year and just recieved a FHA loan at 5.875 30 year fixed with 3% down. My pre-appoved amount was 120k

[Firehawk1120]

yup FHA is a good program for first time buyers. But you can get better rates sometimes if you can put 5% down or if you don't have that 9,000 debt, or make $50,000 a year.

Like I said it's all market specific. But you won't know for sure if you can do anything if you don't get your credit run, and be honest about your financial situation and get that pre-approval.

[camaromechanic]

is the 8000 still a loan. i heard they may change the law so you dont have to pay it back

[ssgtcarroll]

Don't have to pay it back now.

http://www.federalhousingtaxcredit.com/

[camaromechanic]

i bought my house on Dec 31st. so i guess i get a interest free loan and not free money.

[Blackbird WS6]

I am 21 years old with a dept of about 9000 with the car payment. Make about 32k a year and just recieved a FHA loan at 5.875 30 year fixed with 3% down. My pre-appoved amount was 120k

if you dont mined me asking witch company did you use or have?, im looking in to buy a house this year

[bigrondownhiller]

I am 21 years old with a dept of about 9000 with the car payment. Make about 32k a year and just recieved a FHA loan at 5.875 30 year fixed with 3% down. My pre-appoved amount was 120k

I wish homes were that cheap around here. You are lucky to get anything around 200k.

[00z28bubba]

Ok as a realtor I can't tell you how HUGE this is for first time home buyers. IF you didn't already know last year there was a $7,500 tax credit if you bought your home but it was a low interest loan that had to be paid back over 15 years.

The NEW plan allows a claim of $8,000 or 10% of the home's value, whichever is less on 2008 or 2009 taxes.

Now this is limited to singles with an income of $75,000 or couples under $150,000.

You must be either a first time home buyer or not have owned a home in the past 3 years. So unfortunately it doesn't help those already in trouble.

Basic understanding is if you paid your taxes and owe $0 to uncle sam you get $8,000 back if you purchase a house this year. If you owe Uncle Sam $2,000 you'd get back $6,000 or if Uncle sam owed you $3,500 you'd get that plus the $8,000 so $11,500.

If this doesn't at least help get some potential buyers off the fence not much else will.

If anyone has any questions feel free to PM me.

Gene

this is why i just got back 9600 for my return. 2.1k for the house and 7.5k for the credit. money well spent for sure. i now own my camaro and have 0 debt outside of the house. i spent 7 of it for the car and credit card. car was 6.3k and 700 for the card. the rest is in savings and might possibly be applied to a gto

[Spaz]

there are also programs for first time buyer where you don't need to put a down payment and that the seller would pay closing costs...

[Smkn_TA]

Man, this really really makes me want to buy. Would love a house, be allowed to have pets again.

[Zapper2003]

Does this apply to people who build their own house and don't buy an existing home/manufactured home (double wide, modular etc)?

[02Sweet]

right now i'm under the impression that banks are looking for people with reasonable credit scores in the area of 650 or better. again, the lower your score the higher your rates is going to be because of the assumed risk.

As far as closing costs that is market specific. Here in NJ you need to have somewhere in the area of 3-5% as a downpayment. The problem we are running into is something called PMI which is mortgage insurance. if you aren't putting down 20% mortgage companies require you to pay an insurance policy payment as well and the PMI companies are now requiring people to pay more up front due to a term called DECLINING MARKET. if an area falls in this declining market classification then it's tough if you don't have a good amount of savings to get the loan approved.

I would suggest honestly talking to a local mortgage rep or an experienced agent in your area who knows someone that can do a pre-approval for you. most companies will do them for free so if they tell you they want to charge you to run your credit and do the pre-approval go someplace else. If you want to pm me I can get you a local agent to assist you if you tell me where in the country you live.

Gene

Yeah just looked into that PMI shit. To put enough down to not pay the PMI on the places I like (2 car garage) I would be stretching my self too thin. Plus a wedding this year the wife to be and I think it would be best to wait till after that day.

[issues]

my mortgage is fucked, completely fucked and my credit scores average was 793

[ssgtcarroll]

We used PNC Mortgage. Also the seller provided 5,000. I offered them the full asking amount plus 5k and they bit.

We went to closing with just 2600 in hand.

Payments are about an even 1000 a month. Thats with taxes of coarse. (Stupid high PA school tax)

[gwballin]

Yeah just looked into that PMI shit. To put enough down to not pay the PMI on the places I like (2 car garage) I would be stretching my self too thin. Plus a wedding this year the wife to be and I think it would be best to wait till after that day.

There are ways around PMI...

[02blkws6]

I missed out on the free $8k. I bought my 2nd home 6 mo. after I sold my 1st home. I'd rather be where I am now than poor.