2009 is the time to be a new home buyer!  The government is making a strong effort to boost the housing market and the presence of first time home buyers with this update on the tax credit.  Last year- the credit was worth $7500 and you had to pay it back each year in $500 increments- basically an interest free loan from the government for 15 years.

But as of January 1st, 2009- the credit was increased to $8000 and you no longer have to pay it back!  What a deal!  And just this week- the government will now give you the $8000 at closing to put towards your downpayment.  Therefore you could get away with little or no cash needed to purchase a home.

Here is an example of what it would look like to buy a $200,000 loan.  FHA requires a 3.5% downpayment right now so that’s $7000 on a $200,000 house.  Your closing costs might be around $6000 so the cash needed to close the loan would be around $5000.  And the tax benefit that you will receive by being a home owner is significant- you get to write off your interest, mortgage insurance and the property taxes that accompany your home payment.  You will likely come out ahead compared to renting.

Prices are low.  Interest rates are WAY low- 2009 is the time to buy your first home.  Our team is experienced and has help many new home buyers be successful in this market, so give us a call and we can detail your numerous options.

Call Sarah at 503-416-4178 or email at snorton@realtytrust.com