FIRST TIME HOMEBUYERS CREDIT

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FIRST TIME HOMEBUYERS CREDIT MAKING HOMEOWNERSH
IP A REALITY

Julia Craig/Neil Vacek Family Housing Advisory Se
rvices, Inc. 2401 Lake Street Omaha, NE 68111 4
02-934-6749
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FIRST TIME HOMEBUYERS CREDIT

• WHAT IS THE CREDIT?
• 2008 tax credit
• 2009 tax credit
• HOW MUCH IS THE CREDIT?
• 7,500
• 8,000
• WHEN DO I HAVE TO BUY A NEW HOME TO RECEIVE THE
  CREDIT?
  
• April 8, 2008
• December 1, 2009

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FIRST TIME HOMEBUYERS CREDIT

• WHO IS CONSIDERER TO BE A FIRST-TIME HOMEBUYER?
• - Not owned principal residence three years
  prior to date of purchase
  
• ARE THERE INCOME LIMITS?
• - 150,00 - 170,000 married couple
• - 75,00 - 95,000 other taxpayers

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FIRST TIME HOMEBUYERS CREDIT

• WHAT PROPERTIES DO NOT QUALIFY UNDER CREDIT
• - Rental Properties
• - Vacation Homes
• - New Construction
• REPAYMENT OF CREDIT
• - 15 Years interest free loan - 2008
• - Need to reside in home 36 months - 2009

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FIRST TIME HOMEBUYERS CREDIT

• HOW DO I APPLY FOR THE CREDIT? - IRS form 5405
  2008-2009 federal income tax return filing
  
• OTHER RULES OF THE CREDIT
• - Allocating credit between two unmarried
  tax-payers
  
• - Exempt income with no filing requirements
• - Moving out of primary residency prior to
  thirty-six month
  

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MAKING HOMEOWNERSHIP A REALITY

• WHAT IS A MORTGAGE?
• - A mortgage is a loan obtained to purchase real
  estate.
  
• The mortgage itself is a lien (a legal claim)
  on the home or property that secures the promise
  to pay the debt.

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MAKING HOMEOWNERSHIP A REALITY

• READINESS
• - AFFORDABILITY
• - CREDIT READY
• - FIRST TIME HOME BUYING COSTS
• - RESERVE ACCOUNT AVAILABLE
• - EDUCATION
• - PRE-APPROVAL

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MAKING HOMEOWNERSHIP A REALITY

• KNOW YOUR MORTGAGE LOANS
• - FHA (Federal Housing Administration)
• - Conventional
• - NIFA (Nebraska Investment Financing
  Authority)
  
• - Advance Buyer Credit (ABC) Loan Program
• - Creative Financing (Be aware of)
• - 100 financing
• - Variable rates
• - Interest only payments
• - Balloon Payments