The United States is experiencing some economic difficulty right now, as is much of the rest of the world. The news is almost full of nothing but really negative reports on just about every front. Our housing market has plummeted; sales are very low, loans are hard to get, and foreclosure is at an all-time high.
President Obama's administration has allocated funding to stimulating the housing market through several facets: loan refinancing, loan modification and the first time home buyers stimulus. This program that assists first time buyers is a silver lining to an otherwise gray cloud. During these hard times, you may actually be at an advantage if you are shopping for that first home, or have not owned a home in the previous three years. Besides the assistance you will receive financially, this is a great time to find amazing property at rock-bottom prices, often half what it was worth a year or so ago.
This program is for a primary residence, where you live. The home must be purchased between January 1 and December 1, 2009. It is in the form of a tax credit for 10% of the purchase price of the home, but the maximum is $8,000. This credit does not have to be repaid, unless you sell the house before the end of three years. The great thing about this tax credit is that is it refundable, meaning that you do not have to owe that much in tax liability to take advantage of it.
To qualify, you cannot make more than an adjusted gross income of $75,000 for a single applicant and $150,000 for a couple. This is the income qualification for the full credit stimulus money. If your income exceeds this, you may qualify for the reduced tax credit.
Owning your own home is still the main thrust in the American Dream; it is still a possibility despite difficult and perilous financial times. In fact, the difficult times may actually help you obtain a mortgage you can afford, and the downturn in the market may actually benefit you, too. You will be able to find more house for your money, and be able to operate with motivated sellers in a buyer's market.
Historically, when our economy is bad, that is when those who are in a position to do so, profit on land acquisitions. The First Time Home Buyers Stimulus puts you in that enviable position!
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