Eugene Loan Guy

Believe it or not, a first time home buyer is not necessarily someone that has not owned a home previously. A first-time homebuyer is any person who has not owned a home in the previous three years. So even if you have owned a home in the past but have not owned a home in the last three years you qualify as a first-time homebuyer. Just so you know, this is 36 months at closing, not 35 and a half. So you could qualify for the $8,000 tax credit if you purchase a home before December 1, 2009 and haven’t owned a home in three years.

Why should I buy instead of rent?

When you rent a home you pay money every month to your landlord and you are not taking advantage of the tax benefits associated with owning a home. When you make your mortgage payment every month you are paying interest and that interest is a tax write off on your federal income taxes. You can also deduct the property taxes you pay as a homeowner. Owning a home is not for everyone as was proved in the latest housing bubble burst. Check out this post to see if it may be the right thing for you to do.

Do I need money for a Down Payment?

That answer to this is “probably.” There are, however, some programs that still offer 100% financing. One of these is the USDA Guaranteed Rural Home Loan Program and another is the VA Guaranteed Loan Program. Both have qualification requirements. Additionally, both Eugene and Springfield have assistance programs to help low to moderate income borrowers with their down payment. Eugene’s program, HAP, is, at last report, out of funds until the new fiscal year, but Springfield’s program, SHOP, has had a recent infusion of funds from the city. Both programs are $10,000 no interest, no payment second mortgages that can be used for down payment and closing costs. Additionally, FHA only requires a 3.5% down payment.

How do I know if I can get a loan?

A potential buyer should start by getting pre-approved. This allows you to find out how much of a loan you qualify for based off of your income, credit and other factors. The most important part of the pre-approval process is to find a reputable loan officer to work with. They will find out what you can afford to purchase and what you actually can be comfortable paying each month. What you qualify for and the amount you feel comfortable paying every month can be two totally separate items.

Items needed to apply for a mortgage?

• Social Security cards for all applicants
  
• Checking and savings account statements for two months
  
• Statements for any stocks, bonds or retirement accounts
• One month most recent paystubs detailing earnings 
  
• Copies of your last 2 years income tax statements
• Additional Items as needed

Next Step

Call me, or a mortgage professional in your area to find out if buying a home is the right choice for you. I offer counseling for first time home buyers to help them correct credit problems and set up a savings plan to put together the down payment if necessary. You can reach me at 541-342-7576/541-221-3455 Cell or at eugeneloanguy@gmail.com.

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