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Office Location 205 SE Spokane St
Portland, OR 97202
Phone: (503) 789-5832
Fax: (503) 200.1042

Once in a Lifetime Opportunity for 1st-time Home Purchasers

Posted by Melinda Morgan on Monday, March 30th, 2009 at 5:03pm.

 

As part of the billion dollar federal economic-stimulus package, first-time homebuyers who purchase a home between Jan. 1 and Dec. 1, 2009, are eligible for a tax credit of 10 percent of the value of their home, up to $8,000.

The incentive is geared toward single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000.And unlike the tax credit available to first-time homebuyers in 2008, which was a $7,500 interest-free loan to be paid back within 15 years, the 2009 program is a dollar-for-dollar benefit that doesn't have to be repaid. Besides the tax credit, a wide selection of inventory and lower prices are also bringing out buyers who couldn't have afforded entry-level homes in the Portland area a few years ago. Portland-Metro area single-family homes sold last month for a median price of $259,000, down from $280,000 in February 2008, according to the RMLS. Just like we now hear of the Baby Boom era, I think our nation will have a time when we speak of 2009 as “The year of first-time homebuyers”.Bargain shopping Some first-time home buyers are mining for bargains in the area's plethora of short sales (A short sale is when the house is sold for less than the outstanding mortgage).and foreclosures (Bank owned). Just to get an idea of what’s out there. I did a search in SE Portland area (using area 143). I found 1565 properties total for sale with 99 of them (6%) being Bank owned and another 138 (9%) of them listed as short-sale. Buying a home in foreclosure or pursing a short-sale can take extra processing time and has its issues but some first time home buyers are finding the inconveniences worth the savings. Homebuying tips: Before heading out to get your piece of the American dream, consider these steps:
  • Take a class: Many Realtors (including myself) offer 1st time home buyer classes that cover everything from how to avoid predatory lending scams to the importance of home inspections, and are designed to arm potential buyers with the information they need to get through the home buying process. You can join a small group class or get a personal consultation addressing your specific questions and needs. These classes should be offered free of charge. Contact us now to schedule a free class or ask questions.
  •  Get prequalified: Contact your bank, credit union or a mortgage broker to run a credit report and find out how much of a home you can afford. You really should get preapproved before starting your search. There's no sense in trying to guess what you're looking for. Your Realtor can usually recommend a lender if you don’t already know someone. Contact us here if you want to get more info on prequalifying.
  • Find an agent: The easiest way to find a real-estate agent or broker is to ask friends and family members for a referral. Some real-estate offices have agents who specialize in first-time buyers, as well. View testimonials
  • Check out options: There are numerous down-payment assistance programs available to first-time homebuyers. One website that has numerous resources is Fair Housing Council of Oregon
  • Be your best advocate: Buying a house involves stacks of contracts and legal paperwork, and first-time homebuyers are often afraid they might lose a deal if they question the details. But that's one of the reasons why many homeowners are struggling to stay current with their mortgages, or have ended up with short sales and foreclosures. Some didn't fully understand the concept an adjustable-rate mortgage, or were allowed to finance a home they simply couldn't afford. Don't be afraid to ask questions. And if you're not getting answers - run.


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