Some good news for first time home buyers. An $8-thousand tax credit is available, as part of an effort by HUD to stimulate our economy. What's different about this tax credit is its flexibility.
First time home buyers have options on how to apply it, to help in the financing.
To try and spur the economy, the federal government is offering free money to people who are buying a home for the first time.
"So in essence in the federal government, in this federal stimulus package is giving you $8-thousand cash back. It's absolutely the perfect for new or pre owned home," said Phil Hoffman, President of Louisiana Home Builders Association.
Hoffman was on the Fox 8 Morning News. He said this is an especially exciting time for potential first time home buyers in the Greater New Orleans area.
"We're kind of fortunate here, that Katrina was a blessing, even though it was a curse also. The blessing is that this kind of dulled the effects of the recession here in the Metro New Orleans area. Now what we're seeing because of the $8-thousand tax credit, around the state we are getting reports of buyers are out. They're visiting model homes. they are making appointments with builders and sales have begun to increase," Hoffman said.
"Buyers are coming out from everywhere because they are very excited about it, because it's basically like free money," said Broker Tammy Randles of Specialized Real Estate Services.
Randles says it enhances the financial possibilities for those looking for that first home.
"So they are able to go in and get in their house, utilizing a lot of the programs that we have out right now, with down payment assistance, bond programs, soft second in Orleans Parish for example and then once they're getting into their house, once they purchased and are getting their refund up to $8-thousand dollars back," Randles said.
Randles says the qualifications are very liberal.
"Single up to $75-thousand, married $150-thousand but check with a CPA," Randles said.
While some of the credit may be used as a down payment in other states, Randles says she's not seeing a lot of that in Louisiana. Nevertheless, Randles says homes sales have continued to increase since the beginning of the year and that many of them are first time home buyers.
Randles also says since in our area median incomes are lower, most first time home buyer probably qualify. By the way if you haven't owned a home in three years, you may also be qualified to use this tax credit.
