In the mortgage market today it’s possible for a first time homebuyer to receive downpayment assistance up to 4% of the sales price. For example, a first time homebuyer of a $300,000 home can get $12,000 credit toward closing costs.
What’s even better news is that even though you may have owned a home in the past, you may still qualify as a first time homebuyer. If you have not owned a home during your last 3 years of tax returns you qualify for this first time homebuyer secret assistance.
How it works. The 4% credit towards your closing costs sits as a “silent second” mortgage. You make no payments on that, and there is no interest on it. In our example it means $12,000 less cash that you bring to closing.
I have helped many first time homebuyers come to closing with less than $500 out of pocket. One homebuyer recently who had put down a $1,000 earnest money deposit actually got money back at closing.
“The latest survey reports nearly 1.8 million first–time homebuyers in 2016, representing 1.5 percent of all U.S. households and 38.5 percent of home purchases that year.” – CityLab
One of clients was a 60+ year old who had owned multiple homes in the past, but had been renting for the last few years. He was pleasantly surprised to learn that he qualified as a first time homebuyer. It made all the difference in the world to him.
A lot of good people today are renting because they do not know about this kind of available help. If you know someone who might benefit from this, please forward this post to them. They will thank you for it.
The American Dream of owning a home is just around the corner for many first time homebuyers who think the only way to make it happen is to save more money. This little first time homebuyer secret may be the thing that helps them achieve their dream sooner.
If you live in the Austin area, give me a call and let’s see if you qualify. 512-516-4666. Dan Forbes, Forbes Property Group, RE/MAX 1.
