The first time home buyer tax credit, which Congress increased in February to $8000 from $7500 eliminates the repayment requirement, and is an incentive consumers should definitely take advantage of.  If you qualify as a first time homebuyer, meaning you haven’t owned a property in the last three years prior, and purchase a home before December 1, 2009, you will receive an additional $8000 at the time you file your taxes for 2009.  This $8000 could easily pay your mortgage for six to twelve months, depending upon the purchase price. 

FHA loans are attainable for those buyers with limited access to funds for downpayment.  With only a 3.5 percent downpayment and a decent (but not necessarily excellent) credit score, FHA loans are ideal for qualified, first-time homebuyers who have low or manageable debt-to-income ratios but may not have tons of cash for a conventional-loan down payment.

For those first time home buyers who qualify for credit but lack down payment cash, one possible solution can help.  Increase the number of dependents on your tax withholding statement that you file with your employer.  It frees up more money from each paycheck, helping buyers accrue down payment and closing costs funds.  There is hope that in the near future mortgage financing agencies will be able to give buyers access to this tax credit at closing through a loan facilitated by the FHA, thus helping those first time buyers short on cash.

 Call me today, and I can help you with a plan to purchase your FIRST HOME SWEET HOME!  If you want to know more about  financing, mortgage modifications, sellers assist, tax credits or credit restoration and counseling services call me.