First time home buyer tax information is good to know. Find cool homestead exemption info and other tax credit information for first time home owners below.
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.
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.
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.
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. You can find many of those by looking through the housing authority in your area. Sometimes it is an incentive for certain areas in your state.
It's worth checking out, perhaps the very area you are looking for has one of those special incentives. If you want to find the website for the housing authority in your state....go to our nav bar and look at "Grants by State" and go to your particular state. I usually have a link to that state's housing authority to help you.
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.
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. Are you looking for a real estate agent that specialized in the needs of first time home buyers? Once again, go to the nav bar and select "Find a Real Estate Agent." That area of my website will help you find one.
Get the most out of your new house by taking advantage of the first time home buyer tax benefits that are available to you.
Understand what 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.
Go to House Buyer Solutions Home Page.
Oct 08, 19 08:33 AM
Hello, I have a question regarding USDA vs. FHA home loans. I am in the process of getting a home in the next month but was told I wouldn't be approved
Aug 05, 19 10:44 PM
Hi Help please! I am a first time home buyer, buying a home with my fiance'. He is selling his home currently on the market for $125K with no contingencies.
Apr 15, 19 12:36 PM
When buying a home out of state, should we wait for employment contracts? Or can we use our current state's bank? Find the answers here.
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