First Time Home Buyer Tax Information

There is a benefit that is sometimes overlooked when thinking about buying a house, that is the tax savings they will have. One this page I will describe the various savings and tax information you may want to consider.

The excitement of finding that perfect house, picking the neighborhood and even checking out the schools in the community can quickly occupy your time. Those are the fun things in selecting the place you want to raise a family.

But when considering the tax information for that first house, which is less exciting than buying a house, there are several areas to focus on. All of these areas are equally important. They also save you tax dollars.

First Time Home Owners Homestead Exemption

An awesome first time home buyer tax extra is the homestead exemption. This exemption is for first time home owners. How does this work? It helps families in a couple of ways. The first extra is the lowering of your property taxes. Lower taxes mean a lower house payment if you have an escrow set up for your taxes and insurance.

How does this lower your payment? When your payment is figured, your property taxes for the year are divided by 12 and added to your monthly mortgage payment. Thus lower taxes means a lower payment.

You can only benefit from this exemption if you are the owner and live in the house. There is a protection included with this you may not have considered. What if something happens to you? The Homestead provision protects the house from being sold in a forced sale to pay creditors out from under your spouse.

FHA Loan Programs

Be sure to look into the FHA home loan products. They have the most available for first home buyers. It may not be an actual credit, but the savings is generally higher than any former credits that were out there.

Tax Credits for Home Buying

There was an awesome tax credit if you made your house purchase during the 2009/2010 year. That particular credit was a nationwide credit. Unfortunately that one ended. But many communities have their own savings and is worth considering.

There is talk of a new national tax credit coming for future house purchases. We'll see if that transpires. While in the market for buying a house, keep an eye open for this possibility.

Other Tax Credits

First time home buyer tax incentives vary from community to community and unfortunately, are overlooked. It is true that the homestead provision is not in all states, there are other incentives to benefit new house owners out there. All you have to do is investigate your community and see if you qualify.

Check with your local real estate agent for what savings are good in your area. .

Get the most out of your new house by taking advantage of the tax benefits that are available to you.

Understand what First Time Home Buyer Programs are available for you.

Want to know more about FHA home loans? This page gives you a nice explanation of the FHA loan products.

Have more questions? Have a Question is a cool place to look for answers and pick the brain of an expert.

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