First time homebuyers are generally defined as a buyer that has not owned a property for 3 years. So, even individuals that have owned a property, as long as it was at least three years ago will be eligible for many of the first time homebuyer programs.
First time buyers enjoy more loan benefits than any other type of buyer. There are low interest rate loans, subsidized low interest rate loans, down payment grants, down payment gifts, as well as government loans that are designed for the owner occupant first-time buyer.
You can maximize your efforts by working with a team of professionals that specialize in 1st time buyers. These specialists are authorities in knowing what the best loans packages are for you as well as the pitfalls of some of the programs; such as, recapture equity penalties that are better to avoid when other choices are available.
Did you also hear about the new tax break for first-time homebuyers?
President Bush signed new legislation on July 30, 2008 that provides first time homebuyers with a $7500 tax credit. This tax credit is available to first time homebuyers only. This credit is only good between April 9, 2008 and July 1, 2009. So, you have a limited amount of time to take advantage of this great benefit. We think it is the perfect window of time to take advantage of buying a home since the prices are rock bottom and most renters can buy currently to obtain a mortgage payment for what they are paying a month in a rental payment. The tax credit works like an interest-free loan and must be repaid over a 15-year period.
In Virginia, there are delicious mortgage opportunities for first-time homebuyers. We'll talk about two of the loan types here for you now.
VHDA has helped thousands of Virginians buy homes by offering loan programs tailored for first-time homebuyers.
Rural Housing (RD) Direct Loans are loans that are directly funded by the Government. These loans are available for low to very low income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a new home to be built, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans.
Sometimes, you find the perfect house for the greatest deal but work needs to be done and you don't have the extra money to accomplish that. Well, as an owner occupant buyer, you will enjoy the benefits of rehab loans that are designed for needed buyers home improvements while keeping the loan affordable and within the buyers qualification amount.
If credit or job stability is an issue that is preventing you from becoming a homeowner in this "buy now before its too late" market, then rest assured, help is right around the corner. Don't attempt credit cleanup, establish credit, or even guess in knowing what you have to do to have the most successful outcome. There are many lenders, but just as in any industry, only a few are spectacular. We can help get you to the right one!
There are more tidbits and details that will be shared with you once we get the ball rolling. It's important to begin your journey, now, before your market starts to slip away. Many buyers don't know that the real estate market is cyclical and there are always ups and downs. The current market is a little more dramatized downward than usual, but it will come back up. Most buyers fail to see the signs and buy later than they should have when everyone else does causing prices and interest rates to be higher for them. We are in a HOT market now that is poised for First time buyers JUST LIKE YOU!