Downpayment Assistance
Do I Qualify for Downpayment Assistance?
Simply determine if you qualify for the Federal First Time Home Buyer Tax Credit by answering these simple questions:
1. Have you owned in your own names AND lived in a primary residence in the last 36 months? If not, assuming you meet the other criteria, you qualify
2. Did you get a tax refund in 2009 and do you expect another one in 2010? If so, assuming you meet the other criteria, you qualify
3. Are you buying the property from an immediate relative? We already know the answer to that one
4. Did you make more than $150,000 combined last year? If not, assuming you meet the other criteria, you qualify
In short, if you haven’t owned and lived in a primary residence in the last 3 years, don’t owe back taxes and didn’t make more than $150k last year, you qualify. Almost everyone who hasn’t owned a home qualifies
Does Renting to Own Really Qualify me for the first time home buyer tax credit?
Actually, no. It would not be legal to file for the first time homebuyer tax credit under a standard rent to own deal. The reason is that renting to own does not actually qualify as a sale under the IRS guidelines. For this reason, we structure our down payment assistance deals under an owner financing structure. Owner financed homes do qualify as a sale under IRS guidelines and therefore it is completely legal to use the tax credit as a portion of the down payment.
When you uses down payment assistance and the owner finance option, you will still be required to make some sort of down payment. How much depends on the home and your personal situation.
What if I have a down payment, but really want an owner financed home?
Even if you do have a down payment, you may still use this option. Many people want to find an owner that will carry the note for two or three years. They try to find owner financed homes for sale and are unable to locate them. The truth is that it is very difficult to find owner financed homes, mostly because sellers do not understand how it works. Once we explain to them how this program is very similar to our regular program, most sellers are more than happy to participate.
If you have not already, make sure that you check out our rent to own homes listings today!
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