TAX INCENTIVE TIDBITS

As we get into this program, more and more informationis being disseminated. The more I learn the more I see how astute young people can get a head start with their financial future. A student or young adult just out of college with a good credit history*, a current job*, and parents who might gift him a down payment* just might qualify for the tax incentive. As with most government programs there is a time constraint that insures the home must be used as a primary residence, but it is relatively short only 36 months. During this period you are free to rent bedrooms to help pay the mortgage. The home cannot be purchased from a relative. You do not have to be married and there are income caps. Also, two single adults can purchase a home together and each receive a portion of the credit (see IRS NOTICE-12 for guidance.) If the person is buying a newly constructed home most builders will pay most if not all closing cost. This is also a negotiable item with resales. This is an exciting time to be young and be in the housing market just do not wait too long. The deadline is approaching rapidly!

* Not government requirements but necessary for a mortgage loan...if a young person does not have a down payment often parents will give a tax free gift that helps with down payment or closing cost assistance. ( The photo has absolutely nothing to do w/ this post I just like it !)