Now may be remembered as one of the greatest buyer's markets
By BOB JEFFRIES
For first-time buyers
If you have not owned a home before or don't own one currently ...
THE GOOD NEWS: This may be remembered as one of the greatest buyer's market in our lifetime. You have a tremendous selection of new and existing homes with many sellers willing to unload them. While lending requirements are tighter, you can still get a mortgage with a terrific interest rate if you can put down 20 percent of the property's value up front and have a credit rating of 760 or higher (out of 850). This rating will vary with different lenders.
THE BAD NEWS: As far as prices have fallen, they could fall further, perhaps much further in some areas. Buy now and you may get a bargain or soon find yourself owning a home that's worth less than you paid.
Next step:
Buy soon and get a low interest rate if you plan to stay in a home at least five years. Consult a tax attorney on how much the tax advantages of homeownership may help you. But avoid purchasing a home simply because you feel the market may be close to the bottom. Ask yourself if you would still be happy in your new home if you saw 20 percent of your equity vanish in the next year. Now on to the next question involving first time home buyers. First time homebuyer credit. Depending on their income, first time home buyers, which actually means people who haven't owned a principle residence for three years-who purchase their homes between (being extended) Jan. 1 and Nov. 30, 2009, are eligible for an $8,000 tax credit ($4,000 for single filers or married filing separately). (Always check with your tax attorney or accountant as in today's market it changes so rapidly)
CATCH: The credit phases out at income between $75,000 and $95,000 (single), $150,000 and $170,000 (joint). Unlike last years' $7,500 credit, this one doesn't have to be repaid, unless you sell the home for a gain within three years or stop using it as your principle residence.
HOMEOWNERS: One break every homeowner can get regardless of income is a tax credit of up to $1,500 for energy-saving improvements, such as energy- efficient furnace, insulation and storm windows, (we in Florida missed it this year) made to a home in 2009 and 2010.