homeownership by assisting them in the process of getting their finances in order. By doing so, these individuals stand a greater chance of qualifying for a mortgage. For example, simple courses in home economics or household budgeting are important to the financial success of the individual, and achieving the grant program’s goals. Different states have different programs and conditions for home buying grants. The one thing they have in common is that all fifty states have explicit grants for first-time homebuyers. Check what grants are available in the community you are planning to move to. Find a homebuyer grant that fits you, then check the requirements of that grant program. Finally find an approved lender who can help you file the necessary forms.
PENALTY-FREE IRA FOR FIRST-TIMERS -TIMERS
First-time homebuyers are eligible to take $10,000 during their lifetime out of their Individual Retirement Accounts (IRAs) without paying the 10% penalty for early withdrawal. If yours is a traditional IRA, you will have to pay income tax on the money withdrawn. Roth IRA accounts are not subject to additional taxes as they are funded with money that has been taxed. Since the $10,000 lifetime amount earmarked for penalty-free withdrawal is for each individual, a couple could collectively withdraw $20,000 to pay for their first home. The money must be used within 120 days, though, or it becomes subject to the normal 10% penalty.
OTHER HOMEOWNER TAX BREAKS
• The Mortgage Interest Deduction. This is one of the most beneficial tax breaks that homebuyers can take advantage 26
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