First Time Home Buyer Credits and Other Valuable Incentives

Today is a great time to purchase a home. Home prices are at a record low and housing stock are at an all time high. What is even more exciting for purchasers and particularly first time home buyers are the various incentives that can be taken advantage of. The Federal Government’s $8,000 first time home buyer tax credit has been extended until April 30, 2010. A first time home buyer has until April 30, 2010 to go into contract to purchase a property. The purchase must be completed no later than June 30, 2010 in order to take advantage of the tax credit. Home buyers still have two months to find a home to fall in love with and be eligible to receive the Federal tax credit. Congress is even giving current homeowners who have lived in their primary residences for the last five years a tax credit of up to $6,500 when they purchase a new home. The tax credits are available to individuals whose annual incomes are $125,000 or less and for married couples of incomes of $225,000 or less. Another benefit of the tax credit is that the credit can be claimed on a purchaser’s 2009 income tax return. The tax credit does not apply to a purchase of a property in excess of $800,000.00.

First time homeowners can also take advantage of various grant and forgivable loan programs currently being offered by non-profit organizations as well as by some national lenders. First time home buyers may take advantage of the various non-profit organizations dedicated to providing first time home buyers with education, financial counseling and access to various grants and forgivable loans. Pratt Area Community Council, Neighborhood Housing Services, and Neighbors Helping Neighbors, which have offices throughout the five boroughs, are just a few of the many non-for profit organizations that can be a treasure trove of information for first time home buyers. What is so great about these organizations is that the information, counseling, and financial programs offered are free. That is right. Free, there is no cost to the first time home buyer for participating in any of these excellent programs. Beside the programs being free, these various non-profit organizations offer first time home buyers access to down payment assistance, closing cost assistance and even home buyer grants of up to $25,000. For example, Neighborhood Housing Services offers a grant of up to $25,000 which can be used to purchase either a residential home, condominium or even a cooperative unit. That can add up to large savings to the first time purchaser. In addition, national lenders such as Bank of America, Chase and CitiMortgage will work in conjunction with the non-profit organizations and also provide their own grants of varying amounts.

Although we are in a bad economy, there is no better time to purchase a home. Home buyers who take advantage of the various monetary grants, forgivable loans and the federal tax credit can realize enormous savings.

Ryan J. Walsh, Esq.
rjwesq@gmail.com