CreditObama Hopes to Repair Housing Market with New Stimulus Package Aimed at First Time Home Buyers!
In efforts to jump start the housing market Obama has implemented a number of different programs in the stimulus package. The bulk of them include helping to pay off mortgages, but there is one that stands out from the rest. It is for first time home buyers, and it is to help them out with some expenses that they would normally have to pay for themselves.
The government will assist them with a portion of the down payment. Normally this would be ten percent of the cost, so there are the initial savings. Your monthly payments will be a little lower than thought as well because the interest rate on the mortgage will be reduced by a couple of percentage points for you. These savings will already save you thousands of dollars in the long run.
There is also a tax credit waiting for you. Depending on the gross cost of the home, you can apply for a tax credit for up to $8000. It is calculated by finding 10% of the gross price of the home, and anything that amounts to over $8000, will not be considered. You can apply this tax credit in the present year or over two years, it is up to you. This extra money could go a long way for you.
With these three aspects, investing in a new home is no longer as financially stressful for you and you can concentrate more on the excitement of the new chapter in your life. You can even start thinking about what's next in life!