How Do You Buy A House In A Recession For First-Time Home-Owners?
Housing prices are falling, interest rates are at record lows, and new government housing programs mean that now is a great time to buy your first house. All you need is a job, a little savings, and decent (though not perfect) credit. So how exactly do you buy the home of your dreams? 1. Order your credit report. Once a year you can order your credit reports for free from all three credit reporting bureaus. Cleaning up any mistakes means you will qualify for better rates. 2. Research government programs. First-time buyers who purchase their home By July 1, 2009 are eligible for a $7500 tax cut which can be taken in 2008 or 2009. This is a dollar-for-dollar tax break which means as long as income levels are not exceeded you get a $7500 check minus whatever you owe for taxes. Use this money to cover any unexpected expenses you incur so that your house is not foreclosed on. 3. Save for a small down payment: FHA loans are government backed and require just a 3 1/2% down payment. Take a loa
