First Time Home Buyer

The recently launched web site, www.federalhousingtaxcredit.com, that was developed for the newly signed tax credit law has brought over 100,000 visitors.  This shows that there is a rather strong interest of first time home buyers wanting to take advantage of the temporary incentive.  The $7,500 tax credit is available for all first time homebuyers who buy a home from April 2008 to July 2009.  The tax credit was signed in hopes of encouraging potential first time homebuyers to take advantage of the surplus of available homes and buy now.  Many potential first time homebuyers have hesitated as the economy continues to dip; however, now is a buyer’s market and a great time to take advantage of the falling home prices.

According to the National Association of Home Builder’s President Sandy Dunn, in response to the number of hits on the website, “The initial response is encouraging”.  She goes on to say, “This could be the trigger that helps move prospective first time buyers off the fence and back into the market.  But it won’t last forever.”  The tax credit that is drawing so much attention is a part of several provisions that have been enacted into law recently that was meant to get the housing market and the economy back on their feet, so to speak.  The attention and number of hits is encouraging but time will tell.

The popular web site offers useful information regarding how the tax credit will work and includes the requirements for eligibility.  So far the site has attracted nearly 120,000 hits which work out to nearly 10,000 per day.  Details, questions and answers regarding how first time homebuyers can take advantage of the credit is divided into four user friendly sections:

• Tax Credit at a Glance:  Providing an overview of just how the credit works this section is valuable to the visitors who are just hearing about the tax credit incentive.
• Frequently Asked Questions:  This section offers an easy to understand common questions and answer format and contains basic information regarding the tax credit.  This includes the definition of a first time homebuyer, the homes that qualify for the credit, the income limits that will qualify as well as the payback provision and other common questions and concerns. 
• The Law’s Other Provisions:  This section offers a summary of a number of provisions from the Housing and Economic Recovery Act of 2008 in addition to the tax credit.  This section will offer information on how to prevent foreclosures, revive the housing market and how to make the nation’s economy stronger.
• Home Buyer Resources:  This section offers links and resources that will make the buying process simpler and smoother for the first time homebuyer.

The efforts of the website and the Act come at a time when the housing market is in crisis and the number of foreclosures is increasing steadily.  The crisis casts a shadow of gloom over the economy on the whole and by stimulating the housing industry with relief and incentives there is a hope that will move that shadow away and offer a ray of hope and sunshine.

The headlines are full of disappointing news regarding the housing industry; however, the current flat economy is creating opportunities for many. As in many areas around the United States, people who have wanted to buy in high end areas such as Boston but could not are reaching for their dreams of finding a first home in a coveted location. It seems that the buzz word in real estate right now is opportunity. According to many real estate companies, there are a lot of great deals to be found in today’s housing market. This does not come as a big surprise to the many folks looking to buy their first home, particularly in Boston. Massachusetts home prices have fallen around 10 percent since 2005 which is allowing many first time home buyers to enter a market they previously could not afford.

One of the big draws for the first time home buyer today is the perks they are finding. With the efforts of the government, housing development centers and other incentives available first time home ownership is a dream come true for an increasing number of people all over the United States and all over Massachusetts.

Many programs in Massachusetts offer a number of resources for the first time home buyer including classes, information, guidance and even a lottery system for the individuals that qualify to purchase condominiums and homes at below-market prices. There are plenty of enticing programs available for the first time buyer as well in the Massachusetts housing. If a person works for the town or city as a teacher, firefighter, police officer or other public service position they can be eligible for lower interest rate loans. Similar programs are available for people using public transportation or who are trying to rehabilitate a home that is in rough condition.

Naturally there are conditions to be eligible for most programs in Massachusetts and other places around the U.S. Income guidelines and limits as well as other stipulations may apply; however, it is always a good idea to see if you are eligible for any incentive programs. Doing so just may save you significantly on your first home and may allow you more home than you dreamed possible.

When it comes down to it, if you are considering buying a first home, the best time is now. It is a buyers market and there are a lot of great deals and incentives available to the first time home buyer! Expect to possibly be required to take a home buying 101 class or other classes that are offered through incentive programs. Additionally the governmental incentives and tax credits are available to most all first time home buyers to try to stimulate the stagnant housing market. If you are ready the market is primed just for you, run your credit, smooth out the wrinkles and start shopping for that dream home. Make your dreams your reality while the market is yours!

One of the country’s biggest home builders, Pulte Homes is offering dreams for many potential first time home buyers. Pulte Homes Inc. states that it will match the new $7,500 tax credit with its own $7,500 discount on homes for first time home buyers.

Pulte Homes Inc., one of the country’s largest home builders, says it will match a new $7,500 tax credit for first-time home buyers with its own $7,500 discount on homes. This comes as a dream come true for many who are looking to take advantage of all the incentives and enticements as well as the lower housing prices to become first time home buyers. According to Pulte, the goal of this offer which will be extended to any buyer of a Pulte home is “to draw attention not only to our homes but to the housing market in general,” reports Richard J. Dugas, president and chief executive of Pulte. With the decline in housing prices, the devaluation of homes due to the increase of vacant homes from foreclosures this may help those who are ready buy and take advantage of all of the incentives.

The tax credit that was signed into law last week was lobbied hard for by home builders. It is all part of a bigger housing rescue package that is beginning to spread. Currently the housing industry is working hard to get the word to consumers and is hoping the tax break will help pull the crippled housing market out of danger. President of the National Association of Home Builders, Sandy Dunn, states that many potential first time home buyers are now in a good position to buy a home but are understandable nervous about the market. In a conference call Monday Dunn says “This tax credit will help them off the fence”.

According to the NAHB, 40% of all house buyers are first time buyers. The first time home buyer is seen as the key to restoring the housing market. This is generally because the first time home buyer does not have to unload a home before they are able to buy a new one. Focusing the incentives on the first time home buyer now can help to stimulate the industry enough to make it a prime industry for all once again and eventually help stimulate and restore the economy on the whole.

Individuals looking to qualify for the tax credit can have an adjusted income of up to $75,000 a year or a combined adjusted income of up to $150,000 a year for married couples filing jointly. Under the law a person must not have owned a home in the last 3 years to qualify as a first time home buyer. Additionally, the home purchased must close between April 8, 2008 and July 1, 2009 to qualify for the credit.

The individuals who qualify for the tax credit will be matched by Pulte Homes in a discount when they purchase a Pulte home. This may just steady the nerves of the apprehensive first time home buyer who is ready to buy that first home.