Your First Indianapolis Home is a Dream Come True
The tendency of many first time home buyers is to think about their first home in terms of a dream come true. As they start their hunt they tend to search for what they perceive as the perfect home. Often the first time home buyer dreams about their lives in the home for years to come. They look at their first purchase with thoughts of things like adding on to the home, renovating kitchens and baths, and making the home perfect, for the rest of their lives.
Rarely does the first time home buyer embrace the fact that this is their “first home”, and that statistics show there will be many more homes for them down the road. While owning your first home is a dream come true, it will most likely not be your dream home.
How much home can I afford?
The most important consideration prior to searching for your first home is to have a very serious conversation with yourself as to what is a comfortable...
In the current real estate market, many people are taking advantage of home prices in Indianapolis, coupled with low interest rates to become first time home buyers. When you compare the cost of renting versus buying, it makes perfect sense for many. How can you best prepare for buying your first home?
Here are a few guidelines:
1. Know Your Purchasing Power
Many people begin their home search online and ultimately come across the perfect home. They want to make an appointment to view the home and decide it’s just perfect. They have run all the numbers on a mortgage calculator and accordingly, believe they are looking in the right price point. 9 times out of 10, there are costs they did not consider. It is always best to speak with a lender and know your purchasing power...
I've written many times about the first time home buyer program through Indiana Housing. The program allows first time home buyers to take advantage of down payment assistance up to 6% of the purchase amount or a maximum of $7500.00.
As of September 22, 2011, Indiana Housing has reduced their interest rate to 3.5%. Just a few years ago it was 5.5%. To give you an idea what this means in terms of dollar amount per month, I have provided a quick calculation of the principle and interest amount on a $100,000 home.
At 5.5%, the monthly principal and interest payment would be $547.92.
At 3.5%, the monthly principal and interest payment would be $433.33...
INDIANA HOUSING DOWN PAYMENT ASSISTANCE PROGRAM
If you are a first time home buyer in Indianapolis, you should know your financing options. The Indiana Housing Program for first time home buyers who are creditworthy, but may not have the initial upfront costs for down payment and closing costs is a great option. I received this information from one of my lenders with the guidelines for the Indiana Housing Down Payment Assistance Program.
The general guidelines are as follows:
1.First time buyers or someone who has not been entitled to real estate in the past 3 yrs.
2.Indiana Housing will provide down payment assistance in the amount of 6% of the sales priced capped at $7500.00
3.This down payment can be used for required down payment, closing costs and prepaids.
4.The buyers are required to take a home buyer counseling course...
In Pursuit of a Winning Bid
For the last eight months I have been working with a first time home buyer in the $80,000 price range. Based on her criteria, the area she wanted to live and price of the average home in the area, we knew it wouldn't be an easy search.
Not difficult, just not easy! Still, we were able to find homes she liked and made a few offers. One HUD owned home we lost by about $250.00. A couple of bank owned homes needed too much work; a few short sale homes we never received an answer on. Another lost HUD - this time by a lot more. Finally, last week we received confirmation our bid was accepted!
Not All Offers are Winners
The same week another offer made on a HUD home for a different client was rejected. Just so you know - I don't like rejection! Why the difference? As I stated last week, ...
HUD Homes are a Good Value
HUD homes in Indianapolis generally represent a great value for the home buyer's. Since the inception of the $8000 tax credit for first time home buyers, HUD owned homes have literally been 'flying off the MLS active list', with many being sold in the first ten days. As we near the end of the time frame for first time home buyers to receive the tax credit, REALTORS® in Indianapolis are witnessing a surge in activity and prices of HUD homes.
Why the sudden interest in HUD homes? Although HUD doesn't go in and repair the homes they own, many of their homes are in much better condition than bank owned homes. They do inspect the homes and often offer an insured escrow amount for repairs. There are those which are uninsured and need more work, but for the most part, HUD homes are a good value.
If you plan to use the First-Time Home Buyer Tax Credit program to buy a home in Indianapolis, time is running out. The program expires November 30, 2009 and closing on a home can take up to 60 days.
That leaves you about 6 weeks from today to find a home and go under contract.
The First-Time Homebuyer Tax Credit program was passed as part of . It credits up to $8,000 in tax payments to qualified buyers. The qualification criteria are as follows:
- Buyer may not have owned a 'main home' in the past 36 months
- The home may not be purchased from a parent, spouse, or child
- Adjusted gross income for the household must be below $95,000 for single tax filers and $170,000 for joint tax filers
Furthermore, not everyone who's qualified will get the full $8,000. The credit can't exceed 10 percent of a home's purchase price, for example, and households with income approaching program limits get lesser benefits, too.
Indiana Housing & Community Development Authority (IHCDA) lowered their rate today to 5.625%.
When the buyer completes their home buying class (mandatory), they can receive a rate of 5.50%. If you read my post a few weeks ago about the advantage of using the $8000.00 tax credit along with the Indiana Housing first time home buyer program, there has never been a better time to buy a home in Indianapolis.
If you have questions or would like to explore your home buying options, call us at 317.605.4174 or send me an email.
First time home buyers in Indianapolis have been given a great opportunity to buy a home! Changes on Friday in the first time tax credit and Indiana Housing have created a perfect storm for home buyers who have been trying to take advantage of the tax credit, which ends on December 1, 2009.
If you have never owned a home or it’s been three years since you have owned a home, you could qualify and buy your home this year. Changes to Tax Credit HUD announced on Friday the first time home buyer tax credit can now be used up front for closing costs, points, buying down interest rate and additional downpayment. You don’t have to wait to file your taxes to receive the credit.
Changes to IHCDA...
Indiana Housing and Community Development Authority (IHCDA) announced a much anticipated drop in their rates. Okay, it may only be me who was anticipating it; somehow, I think not. In October, Indiana Housing rates started moving up and have remained at 7.25% since October 28th.
Starting today, the rates have dropped to 6.25%. Although the rate is a bit higher than the current FHA rate, Indiana Housing allows down payment assistance for first time home buyers in Indiana.
The First Home Plus program provides up to 5% down payment assistance, capped at $3500.00, as a interest free loan. It’s not as complicated as it sounds. There are some ...
Today is July 1, 2008 and the interest rate on Indiana Housing loans goes up. This is twice in the last month. Effective today, the rate for a loan form Indiana Housing is 6.125%.
Buyers can still complete the online course and receive a .125% discount on the interest rate.
The Indiana Housing program is great for first time home buyers. Check here for more information about Indiana Housing guidelines.
Recent changes in loan programs have put the squeeze on some who were considering buying a home. I received an email two days ago from a client I had been working with, stating his pre-approval had expired and since he could no longer finance 100%, his home buying plans are on hold.
He is moving to Indianapolis from another state and didn’t make the move in time to keep the loan program he was initially qualified for, which would have put him in a home with zero down.
I responded to let him know there are loan programs available which will allow him to buy a home with little money out of pocket. Here in Indiana, we have the ...
I love real estate! This is a business with its ups and downs and sometimes sideways roads to maneuver. Even when you think you might have it all figured out, you usually don't. The next transaction will be the one which proves it to you.
There's always change......Rules change, contracts change, disclosures change and yes, the market changes. The one thing which never changes for me is the unbelievable satisfaction I get from helping my clients achieve their dream of owning a home.
One of my closings this week was a young couple who are first time home buyers. They wanted to buy a home, rather than throw their money away on rent. Their price...