Boise First Time Home Buyers Leverage Tax Credit

craig — Thu, 23 Dec 2010 22:19:11 +0000

Once again, it is time to remind all Idaho first time home buyers that have NOT taken advantage of this free money gift, that the time is running out. Even though there is much talk about extending the tax credit, don’t count on it. The loan has to be CLOSED by November 30th in order to qualify.

One way to leverage the $8,000 tax credit, is to increase the down payment. If a Idaho first time home buyer were to buy a $100,000 home, for example, they could put down the whole $8,000 instead of the traditional 3.5% ($3,500). That would reduce the loan amount on the first mortgage and lower their mortgage payment approximately $30.00. Remember every little bit helps!

A second way to capitalize on this great offer, would be to pay off some consumer debt. Back to the 100k example, a first time buyer could put down the regular 3.5% ($3,500) and use the remaining $4,500 to pay off a car loan. Imagine that, no car payment. How empowering. Now the new home owner can take it to the next level by leveraging the monthly car payment and applying it to other debt. That extra monthly savings can also be applied towards the new mortgage. If a home owner were to make one extra payment a year, a 30 year fixed would be reduced to a 22 year loan. That difference could save a home owner 30-40 thousand in finance charges. Saving money and leveraging limited income is the key to financial success.

And yet another way to leverage the $8,000 tax credit is to contact a local H & R Block tax professional and have 2008 tax returns amended. That would put the cash in a new home owner’s hand in a few weeks, instead of waiting until next spring.

Always consult a tax professional regarding the $8,000 tax credit! Everyone’s tax situation is different.

When is comes to financial responsibility, home buyers need to take control. Set up a Personal Budget and don’t live beyond your means.

Other post like this one-

Guild Mortgage – Boise Home loans – Craig Ballhagen 208-713-3309

Idaho First Time Home Buyer Instant Gratification

Request for No Obligation Boise Home loan Analysis

Tax Credit for Boise First Time Home Buyers

craig — Wed, 15 Dec 2010 23:43:03 +0000

The Tax Credit is Designed to assist First time home buyers, in Boise, to obtain 100% (zero down) financing for home purchases. This releaves young people entering real estate home ownership from coming up with the normally required cash for a regular 3.5% down payment.

Here are a few highlights about the Tax Credit

1st time buyers only: a buyer may not have owned a principal residence for 3 years prior to the purchase.
Credit limits: the maximum amount is 10% of the home’s purchase price, or $8,000 (whichever is less).
Timing: only purchases of a single family home made on or after January 1, 2009 and before December 1, 2009 qualify for the credit. Also buyers must own the home for three years to obtain the credit.
Income limits: single taxpayers with adjusted gross incomes up to $75,000, and married couples with incomes up to $150,000, qualify for the full tax credit.
Easy to obtain: buyers simply file their tax return and complete Form 5405 (First-Time Home buyer Credit Form) which calculates the amount of credit due.

The tax credit loan is offered by Idaho Housing Authority through Guild Mortgage in Boise. I would suggest taking the first time buyers class at IHA at the intersection of 5th and Myrtle.

Pring out your own Boise First Time Home buyer tax credit IRS form 5405