Buying a home is expensive. It is particularly expensive in the initial stages, when down payments, closing costs, insurance, and taxes bombard the prospective homeowner.

The Federal Housing Administration (FHA) has a new program that will help first-time Tampa, FL home buyers (and others across the nation) save on mortgages. The program, called the First-Time Home buyer Tax Credit, offers up to $8,000 as an up-front tax credit to qualified first-time home buyers. The government hopes this money will help jump-start home purchases nationwide. Unlike previous home buyer tax credits, this 2009 credit does not have to be repaid.

FHA Tax Credit Eligibility Requirements

The program aims to help over $100,000 first-time home buyers across the nation. There are several eligibility requirements, however.

-The applicant must be a first-time home buyer, meaning that he or she has not owned a primary residence in the past three years.
- The home buyer must be able to make a minimum 3.5% down payment out of their own pocket.
- The lender must be approved by the FHA (most are).
- The qualified lender must offer a type of loan called a bridge loan.
- The new home must be purchased between January 1, 2009 and December 1, 2009.
- The home must be used as the borrower’s primary residence.
- Single taxpayers with a modified gross income over $95,000 ($170,000 for married couples) are ineligible.
- Once you purchase the home, you must remain in the home for at least three years; otherwise, you may have to repay the tax credit.

How Does the FHA Tax Credit Work?
Through the new FHA program, qualified first-time Tampa, FL home buyers can get up-front cash by applying for a short-term bridge loan. The home buyer will use the bridge loan to borrow against their tax credit, and then repay the loan with their tax refund.

Each borrower receives a tax credit based on the price of their new home. The tax credit total amount is 10% of the home’s purchase price; the maximum allotted credit is $8,000.

How Borrowers Can Use the FHA Tax Credit
First-time Tampa, FL home buyers can opt to use the mortgage tax credit in several ways. They can use the money to pay for closing costs, or to obtain a lower interest rate. Borrowers may also use the credit to make a larger down payment (more than the 3.5% requirement) to lower their principal balance, thus ensuring a lower monthly mortgage payment.

How the Credit Helps First-Time Tampa, FL Home Buyers
This new program helps qualified first-time Tampa, FL home buyers in many ways. It reduces the up-front costs of buying a home, whether the borrower uses the credit towards closing costs or as an additional down payment. The more a homeowner puts down on their home, the less they will have to pay in the long run. The program aims to help thousands of families, both in Tampa and across the nation, afford their first home.

What If I Can’t Afford the Down Payment?
If you cannot afford to make the required 3.5% down payment to qualify for the FHA tax credit, there are lenders who can help. Contact the Florida Housing Finance Corporation or any local or nonprofit lender and ask if you can receive down payment assistance. You may also wish to inquire about Florida’s new Home Buyer Opportunity Program, which has budgeted over $30 million to help first-time home buyers purchase a home by meeting the required down payment.

If you think you may be eligible to receive the first-time home buyer FHA tax credit, speak with your local Tampa, FL mortgage lender or financial advisor to learn more about how this program can help you.

With the new grants, it’s an exciting time for first home buyers.
When is a good time to build/ buy? What is going to happen next in this financial crisis? I was planning on waiting until the new year before acting.

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Its completly up to you and your financial situation. if you find what you want before 30 June 2009 go for it. if not well its only $7000 that you didn’t have. dont just buy a house because of the grant.

im going to buy my first home in ireland over the next couple of weeks and want to know is there a first time buyers grant?

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There isnt a first buyers grant anymore, but you wont have to pay stamp duty (unless they change that in the next budget).

I’m living with my parents, saving and investing. I want to buy an apartment in full. I hate mortgages because of upfront fees and non-tax deductible interest.

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You do not need to buy the property with a loan to qualify for the FHOG. If you have not owned property before, and qualify for the grant, then yes, you will receive the grant. Appl;ication form and guidelines are available from:
www.osr.nsw.gov.au

how long does it take for your first home buyers grant to come though?

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The FHOG is not always just taken off the home loan as another answer stated. On your application you probably would have stated an account number for the FHOG to be deposited into? It will go where ever you elected for it to go, and ours took about 1 month, if that.

My husband and I are thinking of buying a transportable granny flat and putting it in his folk’s back yard. The granny flat costs $108 000, but would we get the first home buyers grant of $21 000, even though its not an established “house”?

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The grant is for the purchase of your first home which assumes it is on its own block of land or in the case of a unit it owns strata title to the space occupied by the unit plus a proportion of the common areas.
Additional information: I just read the other day, that the grant is available for caravans providing that they are fixed to the ground with water and electricity connected and with council permission to be permanently at that site.

My boyfriend and I are thinking of buying our first home, I’m a student, therefore minimal income (until summer 2008), he works, and we know nothing about buying property. We started saving up recently and have a few hundred pounds but from now on we want to start saving more every month until next year, when we want to get a mortgage.
I have seen banks offer mortgages with 0% deposit required, should I be wary of these? How about interest only mortgages? There’s so many types of mortgages, it’s hard to figure out the advantages and disadvantages of all.
Apart from a deposit, what other kind of money allowances should we make (I know we should put money aside for stamp duty, furniture and repairs/diy for the new house). Is there anything else we should think about?
Any other useful information?
Thanks!

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OK.. here’s my thoughts.
First: A mortgage is going to be a 30 year commitment. This means that for the next 30 years you will be committed to working for and paying for a home that will be co-owned by your boyfriend. You haven’t made the commitment for marriage.. how can you make the type of long term financial commitment that will affect your credit and financial well being with out a strong commitment (ie marriage) to your partner? I would work this out first.
Now.. let’s talk about first mortgage. Understand that a 0% down mortgage is financine 100% of the value of your home. This means that from day 1 you will have absolutely no equity in your home. Therefore you will owe more than the home is worth for at least 5 years or more and then after that only have a very small amount of equity. Therefore if you decide to sell the home in less than 10 years you will lose money in the investment unless the real estate market rises a lot in that area. This feeds into the first statement I made above.. let’s say you two buy this home (no marriage) then the relationship falls apart and he moves out. If you can’t make the mortgage payments and he doesn’t provide you with assistance.. you lose the house and both of your credit ratings will be destroyed. Simply because you won’t be able to sell the home for what is owed and you won’t have the cash to make up the difference.
When it comes to a new home purchase here’s my formula for success:
1. Have at least 10% for the downpayment.
2. Have the full amount needed for all closing cost.
3. Have enough money available for any needed repairs that will need to be done prior to move in.
4. Have enough money available for any furniture, appliances, etc that you might need when you move.
5. On top of 1 through 4, have at least a month’s and a half mortgage payments in a saving account that you can draw on should a problem arrise that affects the financial stablity.
6. Work out a budget prior to buying the home. Include in this budget the mortgage payments, homeowner association dues, increase in utility payments, repairs etc.
7. Request your credit report and credit rating. Resolve any and all problems there that you can to push your credit rating as high as possible.
8. Shop around for a lender with the best terms.
9. Get a pre-approval letter from the lender with your maximum available loan amount.
10. Use a realator unassociated with the seller of the home you are wanting to buy and unassociated with the lender you have selected.
Hope this helps and good luck!

What is escrow? Escrow is an arrangement between two parties – such as a buyer and a seller – in which a third party will hold money or documents, then dispense them according to instructions on which both parties have agreed. What this means in simple terms is that a title company officer holds on to the payments and the deed to the property, until the conditions that the buyer and seller agreed on have been met. The escrow agent then delivers the funds to the seller, and the deed to the buyer. The escrow agent is also responsible for closing the escrow account, and giving both parties with a statement which details the terms of the closing. An escrow agent can be recommended by a broker, but the decision as to who is employed should be a mutual choice made by both the buyer and the seller.

Must I Use Escrow?

You are not required by law to use an escrow agent in real estate, but you will have a hard time finding a bank or lending institution that does not require escrow. This is due to the size of funds which is changing hands in the transaction plus it is a protection for your investment. Escrow acts as a protection against either party not honoring the terms of the transaction.

Escrow: Some Things to Keep in Mind

Once escrow actions begin, be sure to provide your photo identification and bring along the information on the home insurance you are purchasing. Closing normally occurs within 30 to 60 days, and the escrow account provides a guarantee that the money placed in it be paid out when all terms of the contract have been fulfilled.

The process of buying a home is time-consuming, and sometimes chaotic. You will be kept busy with many activities, such as getting homeowner’s insurance and hiring a home inspector to evaluate the home. It is important that you keep in touch with your escrow agent. Return messages as soon as you can, and do not hesitate to contact your agent with any questions that arise. An escrow agent can only discuss escrow-related matters, but you need to know and understand all the information, in order to meet deadlines. Any obligations the seller has agreed to must be met, so you need to inform your agent if you are still not satisfied. Always read every document for accuracy, and let your agent know of any corrections that need be made, or of any updated information. As with all closing fees, escrow costs may fluctuate according to region and who is overseeing it.

Escrow is not restricted to real estate. Nearly any sort of valuable property may use escrow to ensure the transaction goes according to plan. Business sales can also use escrow accounts, as do expensive websites and occasionally the source code of popular software. Beware of escrow fraud, however. A number of online escrow agents are fraudulent, so make sure you are dealing with a real company. Find out the company’s address and telephone number to make sure it is located in the United States. Call to talk to an actual agent, and question him about his experience. You may also want to check with the Better Business Bureau to make sure the escrow agent is a member.

If for any reason the original date of closing cannot be met, escrow can be canceled. Documentation from both parties must be shown attesting to the need to cancel, and a fee may occur for a return of the funds. However, assuming each party has fully met the list of terms prior to closing; escrow can now come full circle and be dispensed.

It is unlikely that escrow agents will hold onto files for a long time, so make sure you have copies of everything. You will need to produce the escrow documents to your tax preparer when you file taxes. Of course, when you purchase any property, you should always keep every document relating to the sale for your own records.

Escrow and closing proceedings can take a large amount of time, and can be slightly increased if there is an illness or other interruption. The primary goal is that buyers and sellers keep proceedings rolling in a timely manner. By staying informed, and making sure your needs as a buyer are satisfied, your escrow will soon turn to ownership.

Check out Affordable Real Estate for Sale in San Diego. For information about San Diego Communities, look at our California Community Guide blog.

Last summer, Congress eagerly passed a bill for first time buyers giving them a financial incentive at the time of purchase (which needed to be paid back) in a failing attempt to help the crumbling housing industry. Needless to say, it didn’t have much of an impact on the market, and in fact made potential buyers wary of getting the incentive. Now, those terms of the bill have been amended to provide a greater incentive. It’s a sort of “sale” to entice those who might want to buy but are waiting for any number of reasons. There are certain qualifications that need to be met in order to get this incentive.

The first requirement is being a “first time” buyer. You must have NOT owned any property used for residential purposes during a three year period prior to purchasing. You can own other property, say a rental or vacation home and still be considered a “first time” buyer.

The maximum amount of the credit is $8,000.00 or 10% of your sales price (the credit will be the lesser of the two). The incentive is for homes purchased in 2009. It will run through December 31, 2009. If you keep the home for a minimum of thirty-six months, there is no repayment. In order to get the maximum credit, married couples need to have a gross annual income of less than $150,000.00. Single people need to make less than $75,000.00. You are still eligible to receive partial credits if your income is over $150,000.00 but less than $170,000.00 for married couples and over $75,000.00 and less than $95,000.00 for single filers. If you are married but file separate returns, you can each claim one-half of the incentive on your tax returns.

If you purchased a newly constructed home in 2008, but it wasn’t ready until 2009, you can still qualify in you take possession in 2009. Your tax professional can help clear up any questions you may have prior to filing your taxes.

For tips and facts about how you can benefit from Obama’s Stimulus Package – or to find out if you qualify, visit our no nonsense home buyer stimulus guide: First Time Home Buyer Stimulus.