About First-time Home Buyers Assistance
A first-time home buyer is defined by the U.S. Department of Housing and Urban Development (HUD) as someone who has not owned a principal residence within the past three years. The availability of programs benefiting first-time home buyers vary widely, so be sure to get housing counseling before buying a home to learn what is available to you. Some programs may give you a tax credit, down payment assistance or a lower mortgage rate. Many of these programs are for a limited time and change periodically, so review the links below for current information.
Other People Are Reading
-
Housing Counseling
-
HUD has approved housing counselors throughout the United States. These agencies can provide you with the latest offerings to first-time home buyers in your particular area. There may be federal, state, county, city or other locality programs that can help you save on taxes, get a lower interest rate or get help with a down payment. These programs change frequently and often do not have large public awareness campaigns, so these local housing counseling agencies are the best clearinghouses for information you may not be able to find elsewhere. Click the link below for "HUD Approved Housing Counseling Agencies" to find the one nearest you.
First-Time Home Buyer Tax Credit
-
A $7,500 federal tax credit is available to first-time home buyers if they purchase a home through June 30, 2009. Single taxpayers making up to $75,000 or married taxpayers making a combined income of $150,000 qualify. However, the tax credit is not a gift. It is an interest-free loan that is payable in $500 per year on their taxes two years after taking the tax credit. For instance, if someone took the credit in 2009 on their 2011 taxes, they would pay back $500 of the $7,500 tax credit and continue paying it back annually until 2024 or until they sold their home for a profit of at least the remaining amount due from the tax credit. If there is no profit at the time of sale the remaining tax credit is forgiven. Click the "First Time Home Buyer $7,500 Tax Credit" link below for more details.
-
Downpayment Assistance Grants
-
First-time home buyers may be qualified to receive down payment assistance in the form of grants or forgivable loans by government or non-profit agencies. Typically your income must meet the requirements of the program and you cannot have outstanding tax liens, loan defaults, unpaid child support or a recent bankruptcy or foreclosure. These grant programs vary widely across the county so, as noted above, it is best to consult a housing counselor in your area to learn more about them.
Fair Housing Assistance (FHA) Loans
-
FHA loans are government-backed loan programs that help to take the risk from lenders so they may be able to make loans at lower rates to first-time home buyers without 20 percent down payments. FHA loan programs allow for a low 3.5 percent down payment and permit this money to come from a nonprofit/charitable organization (as described above), family members or even employers. Many conventional (non-FHA) loan programs do not allow this. Fees on FHA loans are generally lower than conventional loans. In addition, FHA loans are also available to those with less than perfect credit. For more information, click the "FHA Frequently Asked Questions" link below or call 1-800-CALL-FHA (800-225-5342).
Other Sources for First-time Home Buyers Assistance
-
There are numerous sources of information for home buyers. These include a licensed Realtor in your area or a local loan officer. These individuals are licensed professionals that can help guide you in your home purchase. If you don't have a Realtor or loan officer, check with your friends, family or local housing counselor for referrals.
-
