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Easy To Buy
Got $2500? Buy a House!
With market prices being the lowest in years, interest rates still low and tax credits abounding, now is still a great time for first time home buyers. Now that there are not many preditory lenders or trick mortgage rates buyers can cash in on a great deal.
With the $8000 tax incentive, average credit and less than $2,500 in savings, it's possible to buy a $150,000 starter home for about $1,000 a month, taxes and insurance included.
Also, the selection for homes is so broad now that a first time buyer can obtain a home that maybe just a couple years ago was out of reach. (Visit our Clarksville TN real estate affiliate for more information for first time home buyers)
Some people that want to buy now are also facing having to sell their primary home first. First-time buyers don't have that problem. But many don't have the down payment money either. But with the tax credit, the money can be used for the downpayment.
REGULATIONS FOR OBTAINING THE LOAN:
- You have not owned a home in the past three years.
- You're single and earning $75,000 or less, or a married couple earning $150,000 or less. Singles earning up to $95,000 and couples earning up to $170,000 can apply but get less than the full credit.
- You close on a home purchase by Dec. 1, 2009.
HOW MUCH CAN YOU COMFORTABLY SPEND ON A HOME?
It varies depending on how much you plan to put down on a home. A conventional 30-year fixed-rate loan usually requires a down payment of 20%. First time homebuyers typically don't have that because previous homeowners are using the equity from their current home to help finance the next home. First time buyers can use a 30-year fixed-rate FHA mortgage instead. The requirements are more lienent and usually can be obtained with just 3% down. The downside is that you must buy mortgage insurance -- to protect the lender in case you default -- which adds to the monthly payment. (Visit our Pasco real estate affiliate for more info on the tax credit.)
With the lower interest rates buyers that could only afford a $100,000 loan a few years ago can now buy a $200,000 home because with the lower interest making the payment lower the mortgage payment is actually about the same as it would be for the lower home. (our Huntsville AL real estate connection has excellent home buyer advice)
For more information on how to buy a home in the Ruidoso New Mexico real estate area fill out the below form and our agents would be happy to help find a loan and a home.
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