A Key Housing Program

The $8,000 Home Buyers Tax Credit is only available to qualified taxpayers who have not owned a house during the previous three years, and who close by Nov. 30th, among other requirements. Buyers can amend their 2008 returns to claim the credit or claim it on returns for 2009.

However, efforts are being made in various states to find ways to provide the money upfront to buyers who need money for down payments and not next year after they file their federal returns and get refunds. Check with your state housing finance commission or a similar agency.

Now is the Time to Buy Real Estate

Home Ownership versus Renting

There is no better time to buy real estate. The mortgage interest rates are fantastically low. You can choose either a 15 year or a 30 year mortgage and still save money over what you would pay in rent for an apartment in a good area. Houses are selling for at least 15% to 20% less than last year. Moreover, you build equity in homeownership never in renting.

If you choose 15 year mortgage, you will actually own your home at the end of that time. Consider where you will be at the end of renting for 15 years.

Two Choices for Financially Troubled Homeowners

Loan Modification or Refinance - Reduce the Burden on Yourself

There are now two choices available for homeowners who are feeling the financial pinch and want to adjust their mortgage payments.

The loan modification requires very minimum qualifications and can give you an opportunity to reduce your monthly payments but allows you almost no cash out. You will keep your same mortgage company. Whereas refinancing requires qualifying and will both allow you reduce your mortgage payment and get cash out subject to the loan to value and how much cash you want. In refinancing, you may choose to have a new mortgage company altogether.

More details on this later.