Although the housing market has reportedly been dire, there is one small silver lining. Due to incredibly low real estate prices, excellent interest rates, and extremely generous government, first-time homebuyers are the only ones who can seem to buy a new home. The promotion market is at a virtual standstill.
If you’re buying your first home before December 1, 2009 and using it as your primary residence, you could pocket some money. The American Recovery and Reinvestment Act of 2009 allows you to claim a tax credit of 10 percent of the purchase price up to $8,000 in your taxes—just $4,000 for those who are married filing separately. The house must remain your primary residence for three years. Contact your tax preparer for more details and to see if you qualify.
City of Los Angeles Programs for First Time Homebuyers
In addition to the incentives offered by the federal government, the City of Los Angeles is also looking to help. The Los Angeles Department of Housing has a handful of homeownership programs worth checking out.
The City of Los Angeles Housing Department (LAHD) offers purchase assistance financing to eligible low-income, first-time homebuyers looking to purchase a home in the City of Los Angeles. This is a deferred loan for closing costs and down payment and rehab costs if needed.
The American Dream Down Payment Initiative Program is also available. All low-income applicants will also be considered for this program.
· The City of Los Angeles also offers Moderate Income Purchase Assistance Programs. This program offers financial assistance for closing costs and down payments and rehabilitation costs if needed.
While you may need to be placed on a waiting list for one of these programs, it’s worth checking out. In fact, your lender will probably be able to provide you with information about these programs.
In case you don’t think you qualify for a first-time homebuyer credit, either federally or locally, in most cases, a first-time homebuyer is defined as someone who hasn’t had a ownership interest in your principal residence in three years. . Many who think they are not first-time buyers may be surprised.
You can enter the Los Angeles real estate market by running
The government is making it easier for first-time homebuyers to enter the real estate market. The market is not being inundated with first time buyers by any means. As it happens, the promotion market is so stagnant as to be almost non-existent. When compared to that, the first-time buyer market seems big.
If you’re considering buying your first home in the Los Angeles area, make sure you get all the details before you sign your papers. Know what programs are available and what the stipulations are. For example, if you plan to move in a couple of years, you’ll need to pay the federal credit. Know what interest rates are available, and make sure the lender you choose to work with is up-to-date on all programs that the City of Los Angeles offers.