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    Major Benefits of Being a First Time Home Buyer

    First time home buyers are constantly being bombarded and berated with terrors about buying their first home. Fearful of making big down payments or only being able to rent, they don’t believe they can buy a home. For almost all first time buyers their first home will be the biggest purchase they’ve ever made to this point in their lives, so being anxious is understandable.

    What we help our clients discover is that you can actually finance a home with NO DOWN PAYMENT by financing via USDA loan. USDA is a loan program geared towards helping lower income people buy a home. They provide 100% financing to those that qualify. The areas that are USDA eligible vary.  We have 4 full-time buyers specialists that help our clients find homes in USDA eligible areas.  USDA is a great program!

    Another amazing benefit that many first time home buyers don’t take advantage of is the Mortgage Credit Certificate (MCC) which can save you up to $2,000 every year on your income taxes. The immediate question a buyer might ask themselves when this is presented before them is: “How in the world can I get in on that?!” To qualify for the MCC you need to be a first time home buyer (or qualified military veteran) and meet the limits set on income and the sales (purchase) price of your home.  The last qualification for the MCC is that the home you purchase must be your primary residence. In other words, it can’t be a property you purchased for the purpose of renting, flipping or investing in other forms.  Contact us today and we can get you the information of a lender that can help you with the MCC.

    Per the NC Housing Finance Agency website, If you qualify, you can claim a federal tax credit for 30% of the interest you pay on an existing home (50% on newly built home) – up to $2,000 per year for every year you live in your home.  Here’s an example showing on the website.  On a $148,000 mortgage with an interest rate of 4.5% would mean the buyer is paying $6,660 in interest the first year. The MCC would allow you to take a federal income tax credit of $1,998 ($6,660 x 30%) for that year.  This is a huge benefit to help when what you qualify for is just below where you want to be.

    If you think you can’t buy a home, call us today!  We can help you get in touch with a lender that can help you with USDA, MCC, and many other great programs you may be eligible for. If you happen to not qualify at this time, the lender will be able to help you get where you need to be to become eligible. If you have any questions or don’t have a lender, please let us know and we would love to help!  You can join the long list of first-time buyers Johnson Property Group has assisted with their first purchase.

    By: Ezra Morrison, Inside Sales Agent

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