Tagged: purchasing a house

Alternative Options to Consider if you are not Eligible for the First Time Homebuyers Tax Credit

So if you are not eligible for the first time home buyers tax credit should you still consider buying a home?  For most people the answer will probably be yes as long as you have the necessary income to make a down payment and to pay your mortgage every month while still having enough money for additional expenses.

The home buyers tax credit requirements are not able to be filled by everyone looking to purchase a home especially if you have owned a home within the last three years so where does that leave the buyer who is not eligible for the tax credit but still is looking for a break.  Here are some some reasons to buy a home now if you are not eligible for the first time homebuyer tax credit:

  • Low interest rates – For some who are considering purchasing a house they may find that their monthly mortgage payments for their house will actually end up being less expensive than renting an apartment. Mortgage rates have been at record lows over the past year and right now are still low (in the 5% apr range).
  • Special provisions for military members – There is a special provision in the first time home buyers tax credit for military and some federal members that was recently added by Congress that allows military member to not have to abide by all of the requirements for the first time homebuyers tax credit.  A military member does not have to live in their new home as their primary residence for the first three years if they receive PCS orders to depart from their unit and get restationed within that period of time.  The will be able to sell the house or rent it out to someone else and will still be eligible for the $8,000 credit.
  • Lower house prices – While home sales are up house prices are still down lower than what they were worth a few years ago.  Sellers are still not able to raise the prices of their homes if they want to sell their house quickly or, in some circumstances, at all.

If you are interested in purchasing a house in New York you will want to cover all of your grounds before signing a contract.  One of the first steps you will want to take once you have found a home you are interested in is to contact a New York real estate lawyer, such as Steven T. Decker a Staten Island real estate lawyer, and discuss your home purchase with him/her.  Your real estate attorney will go over your contract of sale with you so that you understand its terms and conditions.  To speak with a real estate attorney call 718.979.4300.

Military Members Looking to Purchase a Home Can Now Take Advantage of First-Time Homebuyers Tax Credit

If you are a military member who is looking into purchasing a home for the first time you may be curious to know if you qualify for the first time homebuyer tax credit that everyone has been talking about this year.  Many service members that purchased a home over the past year using this tax credit have quite possibly had the question run through their head “Will I have to pay back the first time homebuyers tax credit if I have to get re-stationed?” or “I just came back from a deployment – do I have enough time to purchase a house before November 30 when the tax credit deadline is?”.  Thanks to an extension and revision of the bill these questions have now been answered.

The Service Members Home Ownership Act of 2009 was presented not even a month ago for approval and last week Congress approved both the extension of the first time homebuyers tax credit for an additional year for service members who were deployed outside of the U.S. for over 90 days in 2008 and it would also allow service members to not have to pay the $8,000 credit back if they have to get re-stationed before the initial three years of owning their home.

Many military personnel who purchase homes usually either have to sell their homes or rent them out if they are getting changing locations and are no longer going to be able to live in the home.  This was causing a lot of military members to not want to purchase a home and take advantage of the first time home buyers tax credit because more than likely they would have to relocate within the first three years of owning the home and the chances that the new home could remain their primary residence is usually slim.  With the Service Members Home Ownership Act of 2009 military members no longer have to worry about these provisions in the First Time Homebuyers Credit.

Robert Dietz, the director of tax issues for the National Association of Home Builders, predicts that the approval of the Service Members Home Ownership Act of 2009 will probably result in an additional 10,000 home sales.  While he says this won’t have an impacting effect on the national level of the housing market it will have an effect on the local communities, especially the communities that are near Army, Marine, Air Force, Navy or Coast Guard bases.

No matter if you are in the military or if you are not there are certain tips you will want to use when purchasing a house whether it is in New York, New Jersey or anywhere in the U.S.  To get more information on what steps and precautions you should take when purchasing a home get a no cost, no obligation copy of “5 Myths that Can Ruin the Purchase of Your Home” by Steven T. Decker.  This book is being offered free to residents and those who are looking to become residents of New York or New Jersey.