First time home buyers, you are living in an unprecedented time. The market is flooded with low cost housing, Congress is trying to think up incentives to lure you into buying these houses and tax breaks and incentives for home buyers abound. Lucky you!!
However, on a less positive note, most of the zero down mortgages have disappeared from the landscape and they won’t be back for a long time. You can probably purchase a home today with the equivalent of zero down but note that word “equivalent”. If you qualify for some of the city, state or federally sponsored first time home buyers programs, you will collect cash either before or after closing on your new home. In the case of the federal tax credit, you still need the cash to close to collect the credit.
If you have family or friends who are willing to help you out by gifting you money for your down payment, that could help you through the rough patch. You could accept the “gift” and then make a promise to repay when your tax credit refund arrived. Be sure to work with a talented and ethical mortgage consultant when purchasing a home. These folks can track down every dollar to which you are entitled and make creative suggestions for how to bridge gaps that may arise.
For more detailed information, come to our FREE NO OBLIGATION FIRST TIME HOMEBUYER class or wait for future blogs. “Simple answers to home ownership questions”.