With less than five months left to find, purchase and close on your first home, you don’t want to miss out on this incredible opportunity! It is the perfect combination for First-Time Homebuyers as home prices are at all time values, interest rates at historical lows and an $8,000 tax credit. Wow . . . if only all homebuyers can enjoy this opportunity but I won’t go there for now!
Let me try to convey this once in a lifetime opportunity for First-Time Homebuyers . . .
The American Recovery and Reinvestment Act of 2009 instituted a “First-Time Homebuyer $8,000 Tax Credit” which expires on December 1st, 2009.
- The tax credit does not have to be repaid.
- The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
- The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
Who qualifies as a First-Time Homebuyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
As of May 2009, the active inventory of 6,594 resulted in a 27% decrease from May 2008. The months of inventory was at 6.8, down from 8.5 in May 2008 and the median price of homes sold was $170,000, down 16% from May 2008. The Tucson market has seen four months of stability and it has been announced that we have reached bottom.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
Tucson Home Prices
As of May 2009, the active inventory of 6,594 resulted in a 27% decrease from May 2008. The months of inventory was at 6.8, down from 8.5 in May 2008 and the median price of homes sold was $170,000, down 16% from May 2008. The Tucson market has seen four months of stability and it has been announced that we have reached bottom. Long Mortgage – The Damon Buckner Team
Before you begin looking at homes, you should begin the mortgage loan pre-approval process. In today’s highly competitive market, buyers who have already arranged their financing will have a distinct advantage. With a pre-approval in hand, you can shop for your home knowing what your approved loan amount is and how different loan amounts will affect your monthly.
Months of Inventory (MOI) is a good indicator of market health, taking into account both current inventory and sales rates As a rule of thumb a market is considered “balanced” when Months of Inventory is around 6.
Long Mortgage – The Damon Buckner Team
Before you begin looking at homes, you should begin the mortgage loan pre-approval process. In today’s highly competitive market, buyers who have already arranged their financing will have a distinct advantage. With a pre-approval in hand, you can shop for your home knowing what your approved loan amount is and how different loan amounts will affect your monthly mortgage payment. This pre-approval will also help your real estate agent know what price range to keep your home search within. Sellers will take your offer more seriously because you have a lender that is committed to backing your offer. In a competitive situation, a pre-approved mortgage could make the difference between getting the home of your dreams, or losing it to someone else. Feel free to give Damon Buckner a call at 520-603-2043 to find out about the great interest rates and loan programs!
First time home buyers, listen to this.
So that’s it in a nutshell, there is no better time for First Time Homebuyers to purchase their new home. If you would like to learn more or would like to start looking just drop me an email or phone call and we will get started!
