Fha First Time Home Buyer

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Published: 25th June 2015
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A first time home buyer is a buyer that has NOT owned a primary home in the last 3 years prior to the purchase (If married, both partners must qualify as first time buyers). If you own vacation homes or rentals they generally do not count, but it is best to check with your states Real estate policies.

First Time Home Buyer Mortgage Programs come with $8000 Tax Credit, Low Down Payment and Fixed Interest Rates on Government FHA Loans. Financing Assistance at Affordable Rates.

With the $8000 first time home buyer tax credit you know that is a check that the government sends you for up to 10 % of the sales price of the home up to $80,000 Its capped at 10 % and you are not going to get more than $8,000 back. You may get less if you buy for less than $80,000, but whats truly interesting about this is you can, if you have already filed your tax return, submit a 1040X and obtain that credit sooner. You don't have to wait until April 15th to get your tax credit. You put the cash down today, close on the mortgage, move in, submit your 1040x, there is a form that is called the 5405 but thats not all that important, and you can have that refund in your pocket right away. (These are all subject to change and should be independently verified).

First time home buyers are often enticed by FHA loans due to their lower down payment requirements, which can sometimes be as low as 3 % of the total cost of the home. There are qualification demands that need to be met in order to get an FHA loan. A good credit history and proof of income to cover the loan payments and various other financial obligations must be shown. Your mortgage payment, home insurance, and property taxes must not be more than 29 % of your monthly income. All other debts plus your housing expenses should not be more then 41 % of your gross monthly income. (These are all subject to change and should be independently verified).

Now if you are a first time home buyer living in an apartment and you are thinking about buying; you are looking at low interest rates, you are taking a look at the property values which have come down over 50% (subject to verification), FHA is generally going to be the direction that you are going to want to go, right?


The housing market, combined with the recent tax incentive, has produced a new target audience for Real estate agents and Loan Officers. The need for a sales and marketing plan to resolve education, developing relationships, and communication will create increased business for the Loan Officer and Realtor to provide aid to first time home buyer.

For the first time home buyer it may actually be better to buy in a cooler real estate market than a hot market. Why? In the hot real estate market we have had over the last year buyers had to move quickly to get a home before the next buyer got it. There was little time to review homes, negotiate the best terms and think about whether or not that house was the right one. Sellers were in a very good position, there were lots of buyers and very few homes on the market, so sellers were able to get terms that were beneficial to them. The homes they were selling were frequently in less than perfect condition and buyers were still eager to purchase the property.

The first time home buyer's tax credit has been boosting U.S. summer home sales. The question is: can it last? With budget cuts, layoffs and an all-around depressed economic climate, there are some questions regarding whether this jump in home sales will last and, whether the people purchasing homes will be able to keep those homes.


Terra Bruns is an expert when it comes to First Time Home Buyer programs. To find out everything about first time home buyer programs, visit her website at bellaterrarealty.com.

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