This is the beginning and the end is nowhere in sight...
Saturday, February 28, 2009
First Time Home Buyers Update
According to Paul Bogenschutz of the Home Builders Ass. of Northern Ky, the Kentucky Housing Corp plans to advance the federal first-time home buyer tax credit (up to $8,000) to be used as down payment money at closing.
Folks, here in the Covington Arts District, we've already got a $6,000 forgivable loan that can be used at closing for down payment. If you buy here in the district that's up to $14,000 in down payment help that doesn't have to be repaid if you buy your house this year and live in it for 5 years.
Plus, if you do a full rehab (which it appears at this point is "building a home" for the purposes of the credit) you can also qualify for home energy tax credits if you replace windows, doors, furnaces, insulate, and possibly even if you put a metal roof on your home. This is a credit of up to $1500 at 30% of the cost of the applicable project(s).
Remember, the first-time home buyer tax credit is a REFUNDABLE credit. If you don't owe taxes, they cut you a check. There are income limits, but they're generous. The CARD loan/grant has no income guidlines.
Many of these funds can be used for new construction like the Pulse Lofts or for a rehab project like this one in our first post about the financing incentives.
Add these credits and grants to the extremely low rates that are available (5.1% right now for a 30 year), and, well, this is a heck of a time to buy a house, lemme tell you. These credits could be gone at the end of the year, however, so now is the time to get a move on.