Are you planning to buy a home for the first time? Do you have enough cash or you need to take out a mortgage loan to buy a property? There are several financial institutions that offer loans for first time homebuyers. Before taking out a home loan, it is advisable that you gather proper knowledge so that you can obtain a suitable mortgage loan that suits your financial condition. Reading through this article will also make you aware of how to take advantage of first-time homebuyer tax credit.
* Types of mortgage loans
There are primarily 2 types of mortgage loans for first time homebuyers – FRMs and ARMs.
1. Adjustable Rate Mortgage (ARM) – The interest rate remains fixed for a certain period and which it gets adjusted periodically.
2. Fixed Rate Mortgage (FRM) – The rate of interest remains fixed throughout the term of the mortgage loan.
* Documents to produce
You need to produce the following documents in order to take out a mortgage loan.
• Income proof
• Address proof
• W-2 forms for the past 2 years
• Paystubs for the past 2 years
• Your Social Security Number
• Recent statements of your stocks, bonds and deposit amounts
* First-time homebuyer tax credit
Barack Obama has signed a law that enables you to get a first-time homebuyer tax credit if you buy a primary residence between April 8, 2008 and April 30, 2010. Moreover, you can also take the advantage if you enter into a binding contract before April 30, 2010. By signing this contract, you can claim the federal tax credit if you can settle the purchase before June 30, 2010. You can get a maximum of $8000 homebuyer tax credit if you satisfy the eligibility criteria of a first-time homebuyer.
* First-time homebuyer – Eligibility criteria
In order to take advantage of the federal tax credit, the purchased property needs to be the primary residence of the taxpayer. Moreover, the taxpayer shouldn’t have purchased a primary residence within a period of 3 years prior to buying the current house. If you are married, then you or your partner shouldn’t have owned a residence within the said period. In order to get the full tax credit, the MAGI (Modified Adjusted Gross Income) need to be within $125,000 for a single tax filer and $225,000 for joint filers.
You can take help of online forums if you want to know more about loans for first time homebuyers or first-time homebuyer tax credit.
Useful sites :
Cash Advance Services – you are looking instant cash loans then you can apply now at CashLoanWorld.com that is a gateway site in providing fast advance payday loans within same day.
Letting agents docklands – Lourdes is an established and reputable estate & letting agent in Limehouse providing property for sale and rent across E14, Canary Wharf, Isle of Dogs and the Docklands.
House Builders Sussex- Search for homes for sale at affordable prices in East and West Malling, Ashford, Ditton, Kings Hill and more. Hillreed Homes is a leading property developer in Kent, East and West Sussex offering houses for sale.
Houses to let – Leaders, the Rental agents are the ideal partner in residential property letting. From marketing properties to finding reliable tenants, we take care of it on behalf of Landlords.
Walk in baths – Premier Care in Bathing is the World Leaders in Walk-in baths and Easy Access showers featuring contoured bath seats, hydrotherapy, easy access entry, disabled baths.
Property to let Bristol – Intire Property Management Agency provides a unique approach in property to let in Bristol. They are helping Bristol landlords let their property quickly at the best possible rent for an all inclusive fee. For more details visit at www.intire.co.uk