Expert: Diann Tonnesen - 9/21/2009

Question
where can i find out what kind of programs there are to help a low income family of six in buying a better home my wife needs to move closer to doctors   and i was woundering what and how this tax thing works i do have meny questions on buying a home ......

Answer
Hello Sean,

There are both local and national programs to help homebuyers. For local programs you should call the city housing department where you live and ask about what they have available to offer. Some programs are based on profession (for teachers, police officers, etc.) and others are based on geographic boundary locations. Your local real estate agent may also be able to assist you in finding local assistance programs as well.

The national first time homebuyer program is for buyers who have not owned a home at all in the past three years. The federal government will give the buyer the lesser of 10% of the purchase price or $8,000. This money will first go towards any taxes owed in the current tax year, and the balance will be sent to the buyer in cash. So if, for example, you owe a total of $3,000 in taxes for the year which you have already paid through payroll deductions, they will actually send you a check for the whole $8,000 if you buy a home costing $80,000 or more. If you had not yet paid the $3,000 in taxes (or whatever you owe), they would pay it for you and then send you a check for the $5,000 difference. This program does expire at the end of November 2009, so to take advantage of it, you will need to find something pretty quickly.

Keep in mind that you will still have to qualify for a mortgage. Most of the local programs may offer slightly lower interest rates or down payment assistance to help you get into a property. But you will still have to have good credit and be employed.

Good luck in finding something and best wishes for your wife that she is able to get the medical help she needs!