Home Buyer Deals and Incentives

November 27, 2008 at 2:43 pm Leave a comment

Today’s real estate market offers many incentives for home buyers. These incentives are aimed at stimulating the housing market by increasing home sales. Let’s take a moment to find out what the details are.

1. HUD Homes – A buyer can purchase a government-acquired home, called Housing and Urban Development (HUD) homes, with only $100 down payment on an FHA loan. HUD will pay upto 3 % of the buyers closing cost and give $1,000 bonus on a full price offer. The new guideline hopes to contain the increasing foreclosure of HUD homes for sale. HUD will pay up to $5,500 in repair costs. A pre-inspection and appraisal has been done by HUD prior to selling these homes. An inspection report on each HUD home is available online. This provides home buyers with valuable information on the condition of the property they are interested in bidding on. Only HUD-licensed real estate brokers can participate in purchasing HUD homes. Realty Executives is a licensed HUD broker. To find out which brokers participate in the HUD program, visit http://www.mcbreo.com.

2. First-Time Home Buyers – A tax credit of $7,500 will be given to first-time home buyers purchasing an owner-occupied home from April 9, 2008 to July 1, 2009. This credit is payable for 15 years at $500 annually and may be paid from the proceeds of the sale of the home. If the home sells at a loss, the $7,500 repayment is waived. First-time home buyers may barrow the $7,500 from a family member to close the home and pay it back during the tax season. This incentive is available to U.S. citizens filing annual income tax returns with a modified adjusted gross income of less than $75,000 for single filer and $150,000 for joint filer.

3. Six months with no interest payments – If a seller is willing to pay 6 percent of the purchase price towards closing costs and pre-paid taxes, insurance and HOA fees (if applicable), part of this money can be used towards payment of the mortgage interest for six months. This will reduce your first six months of monthly mortgage payments by roughly $600 on a home that is purchased at $140,000 – even more for a higher-priced home. This allows the home buyer to ease into the home mortgage structure.

4. 100% Financing, No money down – This USDA program may sound to good to be true and may elicit a negative response. After all, many borrowers that used this loan term found themselves in default. This loan program is not for everyone. It is suitable for people that meet income restrictions and will live in the property. The home should be located in assigned areas like Maricopa, Queen Creek, Anthem, Surprise and others. This program is ideal for people who have good income but don’t have the money for a down payment. The mortgage payment will be higher than if there is a huge down payment but it could get you into a home without out-of-pocket expense.

5. 203K Streamline – This loan allows a home buyer to finance the repair costs on a home that is not move-in ready. If you are buying a bank-owned property that is priced low but is in need of repair, this is an option that would come handy.

6. Other loan programs – Below are other available loan programs in today’s market.

· 1% Down FHA with grant money
· 2% Down Conventional loan
· 3% Down FHA

For more information about any of these buyer incentives, contact me at 480-650-0075 so I can connect you to the right lender. Every lender offers different loan products and some may be more familiar with one product over the other. It is important to get connected with the right lender suitable for your specific needs.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Phoenix Real Estate, Real Estate Deals. Tags: , , , , .

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