(PRWEB) October 02, 2012
Getting a good understanding of the current government programs and learning how to take advantage of them can really help customers save tens of thousands dollars over the lifetime of a loan. Today, to accelerate the growth of housing market, the American government has provided billions of dollars to be earmarked for both federal and local housing programs.
“The mortgage rate is record low currently, and the new government programs are made to spur the housing market. We can see some best deals ever appeared in the US housing market,” said a mortgage specialist from Mortgage Hands, “To a potential home buyer, knowing the new IRS home tax credit rules can save thousands of dollars and get easy cash.”
Unfortunately, most of the home buyers do not take the time to do their homework – to study and research what’s out there that can potentially save them thousands of dollars. Below are several programs that Mortgage Hands professionals suggest home shoppers to consider.
One of the main ways that the federal government is allotting the stimulus money is in the tax programs, tax refunds, tax credits and tax rebates for example. A refund is the money the IRS pays to the homebuyers as compensation for expenses. A tax credit is a reduction of the taxable income. And the tax rebate is the money paid to the taxpayers. The IRS home tax credit rules are changeable. For example, the US government started to provide $8000 stimulus money to stimulate the economy in 2008. And in 2010, the funds were extended.
Also, the federal government also provides no down payment programs with low mortgage rates. USDA, FHA and VA loans are the most popular ones. USDA loans are the best choice for qualified borrowers in the rural areas. With this loan, it is possible for homebuyers who have a minimum credit score of 600 to get into a new house. FHA is the most popular one. And VA loans are greatly suitable for veterans who are experienced in house purchase.
More programs are also provided for local residents in the United States. The Bond Program 77 is a local program for Texas. It provides 4 percent assistance of the mortgage for a $100,000 loan to the low-to-moderate income families. Another popular program in the state of Texas is the MCC Program, or known as a Mortgage Credit. This program allows qualified homebuyers to get up to $2,000 on their income taxes.
Before buying a house, it is advisable to find out what your state is providing for you. Do not always blindly follow the regular steps that the bank or the mortgage broker offers. You should get a good understanding of the mortgage industry in person. If you do not have time to learn about the mortgage information, at least ensure that your mortgage broker can make the effort to understand your situation and your needs, and propose a home loan option just for you. You also need to find out if they have checked if you are qualified for any government programs.