The decision to extend the tax credit to existing homeowners purchasing homes was decided becuase 60% of buyers currently own a home or have owned a home within the past 3 years whereas only 40% are first time home buyers.  Congress figures that by extending this credit to current homeowners it will boost home sales even more, by an estimated 10%, over the next few months.

If you are interested in taking advantage of the housing credit you will want to start your search for a home sometime within the next few months because you want to allow yourself enough time to find a house that you like and can see yourself living in for the next few years.  You will also want to allow enough time to get approved for a mortgage, if you plan on obtaining one, and to make sure the title is clear of all violations.

Finding the best Staten Island or Brooklyn real estate lawyer is key to making sure that your real estate transaction goes smooth and is done properly.  To contact Staten Island real estate attorney Steven T. Decker regarding your Staten Island, Queens, Brooklyn, Bronx, Manhattan or northern or central New Jersey property purchase you can either call 800.976.4904 or 718.979.4300 or you can fill out our form on the web and someone will get back to you about your purchase.

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Now that we have established some ground rules for purchasing a house here are some things to may help you decide to stop just thinking about buying a home and actually go do it within the next few months:

• Reason #1 – Housing Tax Credit – If the extension of the housing tax credit is approved (which more than likely it will be approved by the end of the week) not only will the provisions of the First Time Homebuyers Tax Credit be extended until the end of April 2010 but it will also be extended in the sense that a reduced credit will now be available to certain existing homeowners.   The new tax credit would consist of a tax credit that is 10% of the house’s purchase price up to $8,000 if they have a sales agreement in hand by April 30 and close title on the house by June 30, 2010.  This credit would be available to first time home buyers of those interested in buying a house that have not owned property in the past three years.  The limit for the household income if single will be $125,000 or $250,000 for a couple.  The next credit is a new incentive to take advantage of the housing tax credit which offers a reduced tax credit of up to $6,500 to certain existing homeowners.
• Reason #2 – Prices are Low – Because the economy is not stable enough to say it has fully recovered or come close to fully recovering yet housing prices are still low.  In fact, sellers in Staten Island, Brooklyn, Bronx, Manhattan Queens, most areas of New Jersey and nationwide are faced with having to list their houses at a low price and are sometimes forced to lower that price even more to sell their house.   For buyers this is a great thing because they are able to get a house that a few years ago would have cost tens of thousands more than what they are selling for now.
• Reason #3 – Foreclosures and Short Sales are at Record Highs – Distressed homes accounted for a significant number of houses sold this year.  Distressed homes include foreclosure’s being sold and short sales which usually sell for anywhere between 15 -20% less of market value.  Taking advantage of these types of homes can potentially benefit you as a buyer but buyers should also beware of the possible risks associated with short sales and foreclosures.
• Reason #4 – Low Mortgage Rates – Rates for mortgages currently run around the 5% APR range for a 30-year fixed mortgage.  This is much lower than previous years and the rate of a mortgage that you are eligible for is a huge factor in deciding factor in whether or not you will purchase a house and how much you are willing to spend on it.  The lowered mortgage rates are a big incentive for many people who are deciding to purchase homes right now.
• Reason #5 (applicable if you are purchasing a home in New York) – Mortgage Tax Credit – A mortgage tax credit is available if you are purchasing a home in New York City.  The tax credit can be used if you are a first time homebuyer and can be combined with the federal First Time Homebuyers Tax Credit.   If you do a real estate transaction in New York for a New York City home and obtain a new fixed rate mortgage through certain types of loans you will be eligible to receive up to 20% off of your mortgage tax for the entire life of the loan.
• Reason #6 (applicable if you are purchasing a home in New Jersey) – State Housing Grants – There are many New Jersey state housing grants available to first time home buyers looking to complete a real estate transaction for a New Jersey home.  There are many different types of New Jersey housing grants and the terms to each vary.

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Many of the first time home buyers looking to purchase a home and take advantage of the tax credit do not have enough money to put a down payment to wards a house.  This is one of the main reasons that stops many prospective first time home buyers from proceeding with their home purchase.

If you are a first time home buyer planning on purchasing a home in New Jersey you many be eligible to take advantage of the New Jersey First Time Home Buyers Grant.  This grant is free money to you that is offered by the state.  There are no penalties for taking advantage of this grant.

One of New Jersey’s most popular grant for first time home buyers is the Individual Development Account which gives you $4 for every dollar that you save up toward the purchase of your home.  If you are considering purchasing a house in New Jersey that requires a down payment of $20,000 you will only need to save up $4000 the rest of the money would come from the grant money that has been added to your Individual Development Account.

Aside from state based grant programs in New Jersey there are also grant programs based on the location in New Jersey that you are considering purchasing your home.  Below is a list of some local grant programs in New Jersey that may be helpful to you:

• East Orange Home buyers Purchase Program (HPP) (973) 266-5416
• Hudson County First Time Homebuyers Program (FTHP) (201) 875-5581
• Jersey City, First Time Homebuyer Program (201) 547-4793
• Monmouth County First Time Homebuyers Program (FTHP) (732) 431-7490
• Ocean County First Time Homebuyer Program (FTHP) (732) 929-2054

For more information on purchasing a home in New Jersey or if you are looking for a real estate attorney to represent you throughout your purchasing process and at your closing contact Steven T. Decker, New York and New Jersey real estate attorney, located at 1610 Richmond Road Staten Island, New York 10304.

Also, available to New Jersey residents and those looking to purchase a home in New Jersey get a FREE copy of Steven Decker’s real estate book, “5 Myths that Can Ruin the Purchase of Your Home”.  This book is a must have if you are purchasing a home in Middlesex County, Monmouth County, Union County, Essex County, Hudson County or Ocean County, New Jersey.

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Renters are being persuaded more now than ever to become a homeowner in todays market.  There are many advantages for the renters, especially if they are first time home buyers.  With current interest rates averaging around 4.25-4.5% there is plenty of reason for people to purchase a home or refinance.  Some renters may even find that the amount they would be paying monthly for a mortgage is equal to or less than the amount they are currently paying for rent.   Another advantage to the renter as long as they are a first time home buyer is the $8,000.00 federal tax credit for first time home buyers that will be given as long as you purchase a home between now and December 1.

As you can see there are many advantages to becoming a homeowner in todays market instead of renting a property.  Some builders are trying to potentially sell their newly constructed homes by offering custom designing within the homes, trying to promote the fact that you can have pets in your home (unlike some apartments) and even helping the potential buyer find a bank that is offering low affordable interest rates.

If you are looking to purchase a home in Staten Island or the New York area contactSteven Decker, Staten Island real estate lawyer, to get started on your purchase today.

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