Mike Duncan, an experienced Southside REALTOR, explains how parents can help their adult children buy a home. With experts still touting real estate as a sound investment, the buyers could also get up to $8,000 in return. If they qualify for FHA financing and can get a little help from mom and dad, they could have a once-in-a-lifetime option to buy instead of renting.
If you are a parent with children 18 years or older, and they qualify for FHA Financing, you are eligible to help them buy their first home. With FHA financing, the down payment amount is only 3.5%. Lenders allow the parents to “gift” the down payment to your children by just writing a letter. And, if the property is closed on or before November 30, 2009, your child is eligible for a tax credit of up to $8,000 paid directly to them. Free money is being offered if one wants to take advantage.
In order to close before November 30th, they should be under contract no later than 10/15/2009. As an additional benefit, mortgage rates have not been this low since the 1960’s. Never before in history have homes been this affordable. So if it is at all possible anyone interested in buying a home should act now before this opportunity passes by…”
Submitted by Mike Duncan
Homes are one of the most costly investments you will make in your lifetime; but it doesn’t have to be that way. You can optimize your living arrangements to better suite your needs and desires. Buying a home can often times be to your advantage, but there are times when it may not be. Therein lies the question… “Should I rent or buy?” Click here to make sure you are asking yourself the right questions: