Other Tax Exemptions I Should Know About?
Question:
I’m about to buy my first house and all I hear about is what a good time it is to buy… I know that you can get the 8k credit or do the 0% down FHA loan, but are there any tax exemptions or any grants that I should be trying to apply for?
Just wondering if anyone has stumbled across anything? Are there any other Government handouts for first time home buyers besides FHA?
(We answered on Zillow)
Answer:
Hi, As a first time home buyer you will qualify for the $8000 credit, and could get an FHA loan. Most loans will require the borrower to have a small down payment, FHA is now 3.5%. There are programs available, state by state, that are supported by state bonds or non-profit groups that offer down payment assistance or low rates or special financing programs. Your best bet would be to look for a loan officer that specializes in first time home buyers and knows about such programs. I’m in Washington State where there is a program called the “House Key”. You attend a class for home buyers, which will fill you in on all the requirements of receiving the assistance. Often the loan program will also require you to stay in the home for a specific length of time, presumably so that you will have built some equity. Also the lender doesn’t make money as fast with the lower rate or the longer term that is offered. I put this search statement into Leapfish.com search engine, “[your state] first time home buyer programs” and came up with some good results. That will give you some programs to ask loan officers about.
Good luck!
Lynette Hensley — Associate Broker