| There are many troubling aspects of buying a | | | | binding agreement to buy a home by April 30th, |
| home in this economy. Firstly, you have to have | | | | 2010, you can get a tax credit of 10% of the |
| saved enough to come up with the down | | | | purchase price of your home (up to $8,000) that |
| payment. Then, there is the dreaded interest on | | | | you need not pay back unless you move out or |
| your monthly payments. And on top of that, | | | | sell your home within the first three years. The |
| there is the risk of losing your job. The good | | | | first time home buyer tax credit can only be |
| news though is that the federal government's | | | | claimed towards a home that is your primary |
| $800-900 billion dollar stimulus package now offers | | | | residence. It need not even be your first home |
| you a suite of incentives that could very well | | | | purchase - only your first home in three years. |
| make this the best time to buy. A key part of | | | | The provisions are fairly lenient but some |
| the stimulus program is the first time home buyer | | | | restrictions and qualifying criteria do exist (such as |
| stimulus which is designed to kick start the | | | | to discourage "house flipping"). Claiming your tax |
| housing market and encourage people to buy | | | | credit is also straightforward. You essentially claim |
| homes. An increased number of home purchases | | | | it when you file your tax return. You just need to |
| will also put more money into the economy and | | | | fill out IRS Form 5405 to determine the amount |
| help stabilize it. | | | | of your credit, attach a copy of your HUD-1 |
| So what are the benefits to buying a home now? | | | | settlement form, and enter your credit amount |
| For starters, you do not have to come up with | | | | on line 67 of the 1040 income tax form for 2009 |
| the full 10% percent down payment on your own. | | | | returns (or line 69 for 2008 returns). |
| The federal government will help you pay for it. | | | | If you have a stable job and are serious about |
| Next, to help ease your worries about paying | | | | buying a home, do not procrastinate. Make sure |
| interest on your monthly mortgage payments, | | | | you jump on this boat while all these great |
| rates have been slashed by a couple of | | | | incentives are still available. |
| percentage points. Best of all, if you enter into a | | | | |