| While many believe that over-extended first time | | | | A 10% tax credit is available to those who purchase a |
| home buyers played a large role in creating the current | | | | home between January 1, 2009 and December 31, |
| economic crisis, the Federal Government nonetheless | | | | 2009. Depending on purchase price, this credit may be |
| is trying to woo even more new home buyers with | | | | up to $8000. The credit must be claimed within two |
| their current stimulus package. Afraid you can't afford | | | | years of buying the home. The tax credit might be |
| to buy a house? Worried you won't qualify for a loan? | | | | used to offset the property taxes and to recover |
| Never fear ? the government will come to your | | | | some of the downpayment, which is often a barrier to |
| rescue with its 'First Time Home Buyer Stimulus | | | | home ownership. |
| Package,' which is being targeted to both first time | | | | Speaking of down payments, the second incentive |
| buyers and those who have not owned a home for at | | | | introduces the possibility of having to raise a smaller |
| least three years. | | | | sum. A typical down payment amount is 10% of the |
| Owning your own home remains the American dream. | | | | sales price -- $20,000 on a $200,000 house. If you |
| That's the philosophy behind this program, which | | | | don't need to put down so much, the government |
| includes both pre-owned and newly constructed | | | | hopes you'll spend that savings on home |
| homes. If successful, it could reduce the current | | | | improvements or other investments. They might also |
| inventory of unsold homes, replenish construction | | | | offer you a loan with lower points, resulting in lower |
| industry coffers and put some unemployed builders | | | | closing costs or a lower monthly mortgage. This |
| back to work. There are three components of the | | | | program is restricted to individuals earning up to |
| program: | | | | $75,000, or couples earning up to $150,000. |
| 1. Tax credits | | | | A final alternative being offered is a tax rebate on the |
| 2. Down payments funding | | | | loan's interest. This is different from a tax credit. |
| 3. Lower interest rates | | | | Investment property owners are also eligible to take |
| The first stimulus programs were instituted in 2008 at | | | | advantage of the tax rebate for expenses that are |
| the beginning of the economic downturn. As these | | | | considered part of the property's maintenance and |
| programs were found to be insufficient, the | | | | therefore an income tax deduction. |
| government unveiled additional incentives to spur home | | | | The government foresees many positive benefits |
| ownership. The goal was to reinvigorate the | | | | from the First Time Home Buyer Stimulus programs. |
| real-estate market at a time when people must | | | | Beyond helping people to become homeowners, it is |
| overcome their fear of spending and of home | | | | viewed as a way to revitalize the economy, and keep |
| foreclosure. | | | | our head up in the eyes of the world. |