18th Mar, 2009

First Time Denver Homebuyer Wins!

Denver’s first-time homebuyers win hands down.  Buyers who purchase their Denver Colorado homes between January 1 and November 31, 2009 get in on the tax and real estate bargains of the decade.  Thanks to great deals for Denver CO homes, a large selection of Denver real estate on the market, tax credits, higher FHA loan limits, and low interest rates, it’s time to encourage every possible first-time buyer possible to stop renting and to start building home equity.  It’s a win-win proposition.

Buyers today have the largest selection of Denver homes that has been available in 15 years.   With FHA loan limits for real estate in the Denver metro area recently increased to $406,250, first-time home buyers may be able to choose more favorable neighborhoods for their families—neighborhoods that looked too expensive a couple of years ago.   Additionally, they may be able to select larger homes with extra bathrooms or bedrooms.  The stimulus package increased the FHA loan limits for the remainder of 2009 and we do not know future plans. 

In a buyers’ market like we have not seen for 8 years, great deals can be found.  Home prices are reduced, having been stripped of inflated equity.  Sellers are also willing to negotiate, to pay down interest rates, and/or to pay many of the buyers’ closing costs.  One more thumbs up!

We are seeing some of the lowest interest rates of our lifetimes.  Moreover, if rates go down even more dramatically, the FHA has a streamlined refinance program wherein buyers will not have to re-qualify.

Now, about the tax credit for first-time homebuyers:  If a home is purchased before December 2009, the buyer may receive up to $8,000 or 10 percent of the value of the home in tax credit.  The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes over $75,000. 

A tax credit is not a tax deduction.  It is equivalent to money.  For example, a homeowner who owes $8,000 in income taxes for 2009 may not have to pay a dime.  If the taxpayer doesn’t owe anything, he/she could receive a check for $8,000—just for buying a home this year.

Somewhere between impatient sellers, the roller-coaster economy, and the stimulus package, first-time buyers look to be in the most advantageous position.  Through FHA, they can still get into a home with 3 percent down, a job, and reasonable credit.  They have the added flexibility of not needing to sell their existing homes in order to move.  Sound like first-time homebuyers are the all-around winners this year.

For more information about real estate in the greater metro area, including farms and horse properties, call Michael Paul of Realty Oasis at (303) 268-6052.

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