Jim Curry - Home Buyers Guide V2 Book

federal grant. Besides pre-qualifying for a mortgage, you will need to get your credit checked (and possibly fix ed, depending on what the report reveals), and your income level (and proof thereof) will play a factor, as well. For the majority of grants, you’ll need to fin d a balance between demonstrating that you do, in fact, require down payment assistance (or fin ancial assistance in other areas, such as closing costs), but also that you are making enough money to be able to qualify for a home loan and a ff ord monthly mortgage payments. It can b e a fin e line. Application Th ere are steps to follow when applying for a buyer grant. First, fin d a home buyer grant that fi ts you. Th en, check the requirements of that grant program. Finally, fin d an approved lender and fi ll out all the application forms correctly. Th e HUD website is a great resource for buying a home, whether it’s your fir st or your tenth! (https://hud.gov) SPECIFIC HOMEOWNER TAX BREAKS Penalty-free IRA withdrawals. First-time home buyers are eligible to withdraw $10,000 during their lifetime from their Individual Retirement Accounts (IRAs) without paying the 10% penalty for withdrawal before the age of 59 ½, assuming certain requirements are met — mainly that the money must be used to buy or build a primary residence. Mortgage interest deduction. Th is is one of the most bene fi cial tax breaks that home buyers can take advantage of, both fir st-time and repeat buyers. Basically, the IRS allows you to deduct from your taxable income the interest you pay your lender. Home mortgage interest is one of the largest deductions for those who itemize their tax returns. Lenders will report your mortgage interest on a 1098 155

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