Congress plans to extend this credit into next year and also add a new credit of $6500 for existing home owners.
If you have been a homeowner for 5 years or more, you may qualify for the $6500 on a new home purchase next year.
By far, this no down payment mortgage loan has become very popular with first time home buyers this year. Specifically, Wisconsin has many areas in which the property you are looking to purchase will be eligible for this program. Wisconsin mainly consists of rural areas.
Here is a direct link to a map that shows the areas of Wisconsin that are eligible for a rural housing loan.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11
The rural housing loan does apply throughout the nation, but you have to find the site that pertain to your state. Each state is going to have different areas that allow eligibility.
To learn more about the details of the Rural Housing Loan, go to no down payment mortgage loans in Wisconsin.
Since this blog has been around for almost 2 years now, many new readers may not be aware of some of the other helpful mortgage advice topics that have been shared in the past. First time home buyers seem to be the type of buyers that are actively looking to buy a home this year, so much of this advice will be for the first time home buyer. The more mortgage advice that can be absorbed the better.
Every time I take on a new first time home buyer client, I take the time to educate them with the entire mortgage process. This is a necessary, because the entire process of buying a home and financing it can be overwhelming. If there isn’t someone to walk you through the entire process, then take the time to gather up all the mortgage advice posted here.
This year is now being considered one of the best years to buy a home, because of a large tax credit for first time home buyers, interest rates at record breaking lows, and home prices have dropped over the years. These buyer benefits have helped many people decide that 2009 is a great year to buy a home.
I wanted to remind you of some of the other content on this site that could come in handy when looking to buy a home in 2009. Use this mortgage advice to your advantage and you will be sure to find a great deal when buying a home this year.
Here are 3 posts worth your time to read:
What is a FHA mortgage loan? – This has become the most popular mortgage loan today. A detailed look at what the FHA mortgage loan is.
Top 5 questions answered for first time home buyers. – Popular questions and answered that all first time home buyers should know!
Get your mortgage quote in writing. – Talks about what paperwork to look for when getting your mortgage quote in writing.
Free money, yes free money for buying a home this year!
You can get a tax credit of $8000 or 10% of the purchase price (whichever is less) that you can claim on 2008 or 2009 taxes if you bought or plan on buying a home this year.
Unlike the first time home buyer tax credit last year, you DO NOT have to pay this money back. (There are some rules to follow with not having to pay this money back and I have a direct link below to the IRS form that lists these rules). Add this to the historic low interest rates, surplus of inventory on the market, and home prices being much lower, this is a great year to buy your first home.
This is what’s necessary to qualify for the tax credit:
If you bought or plan on buying the home in 2009, you have to follow a few rules in order to qualify in not having to repay the money.
Here is a direct link to the actual IRS Form 5504 that explains all this in detail. This form has been updated Februrary 2009.
I always like to hear your feedback about incentives like this. Would this encourage you to buy a home this year? If not, what exactly are you waiting for? I like both postive and negative feedback.
Here is a detailed list you can print or save about the tax credit.
2009 First Time Home Buyer Tax Credit
For more information regarding this credit go to 2009 federal housing tax credit.
A reality check perhaps? This chart shows the trend of the 30 year fixed interest rate for the last 37 years. Let’s say it’s the 1980’s and you are looking for a home. You give me a call about getting yourself pre-approved for a new home loan and I share with you how the rates are currently doing.
18% for a 30 year fixed rate? With 20% as a down payment on a $200,000 sales price, that’s a mortgage payment of $2411.34. That’s just the principal and interest payment.
Now, the current 30 year fixed rate is about 6.0%. With a 20% down payment on a $200,000 sales price, that’s a mortgage payment of $959.28! That’s a difference of 1452.08 every month!
Here an even better way to look at it. Let’s assume the first mortgage payment of $2411.34 was affordable for you. That same payment with today’s interest rates will buy you a home in the price range of $500,000! Yes, that’s half a million dollar home!
Now, perhaps a half a million dollar home is too much, (it would be too much for me at the moment) but you can see how today’s mortgage rates are still at a historical low.