First Time Home Buyer Programs

Reader Question: What qualifies you for first-time home buyer?

Well, if you are buying your very first home, then you meet the definition of first-time home buyer. I don't mean to be blunt, but that's the answer to the question you've asked.

But let me assume for a moment that you meant to ask about first-time buyer programs. In this case, we have more to consider.

This is a subject that confuses a lot of people, and it's easy to understand why. There are all kinds of programs designed to help first-time buyers purchase a home. But these programs range from private grants to federal tax credits, so it's nearly impossible to explain them all in one article. So let me zero in on a couple of things you might want to research:

Grants for First-Time Home Buyers

I've written about this subject a couple of times in the past. Here's one blog post that addresses grants, and here's another that offers helpful links to related information. I always suggest that people start with their city and state to find home-buying grants they might qualify for. There aren't many federal grants around anymore, but there are quite a few available through private sources and also through city and state programs. So try doing a Google search for the phrase first time home buyer followed by your city ... and then do the same search for your state.

Tax Credit for First-Time Buyers

As part of the federal government's efforts to stimulate the economy, there is a new tax credit available to first-time home buyers in the U.S. Basically, it's an incentive designed to encourage more home-buying activity, thereby stimulating our troubled economy in the process.

But there's a time limit on this benefit. As of this blog post (November 08), the eligibility cut-off date is July 1, 2009. It's a $7,500 federal tax credit for first-time buyers who buy between April 2008 and July 2009. The National Association of Home Builders (which is really hurting right now) has launched a website that offers more information on the tax credit.

Hope that helps. Good luck with your first-time home buying experience!