01 May Graduation Season: Advantages to being a First-Time Home Buyer
Is it time to start planning and saving for your first home in Flagstaff or Lake Havasu City?
Graduation is fast approaching for many Northern Arizona University students here in Flagstaff. The natural next step after graduation (or hopefully a bit before) is to start planning for your future. That future may include a bit of travel, perhaps “popping the question” to that special someone, pursuing a new career path, or planning the purchase of your first piece of Flagstaff real estate. Especially those who are graduating with their Masters Degrees or other Graduate Degrees may have fallen in love with Flagstaff and may be looking to buy now. If that’s you, or you’re just curious about homeownership down the road a bit, here are a few advantages to buying your first home.
Take Advantage of First-Time Homebuyer Loans
Don’t have a huge amount saved for a large down payment? Haven’t established the best credit yet? An FHA (Federal Housing Administration) mortgage is insured by the FHA and therefore is less restrictive when it comes to loan qualifications. Often these loans also allow smaller down payments around 3.5%, non-occupying co-borrowers, and sometimes grants from the government, charities or nonprofits. You may qualify for and FHA loan if you are a first time homebuyer or haven’t owned a home for 3 years. Contact a qualified mortgage professional like the team at Academy Mortgage for up-to-date information and guidance.
Taxes: Deduct the interest you pay on your mortgage & more
Tax season just ended, and for many of us, that wasn’t a pleasant experience. For a lot of people owning a home can make the tax season a little less painful! The home mortgage interest deduction is one of the most well-known tax advantages for real estate owners. There are a few stipulations, but most first time home buyers will qualify for this tax deduction. At the end of the year the amount of interest you paid towards your mortgage will be reported on a 1098 form from your lender. This can be especially helpful for first time buyers who often will be paying more interest than principal in the first few years.
Low-income first time buyers may qualify for subsidized interest programs
Some people who qualify as low-income can qualify for subsidized interest programs. These programs allow you to pay only on the principle of your mortgage. This makes your payment more affordable and able to be paid of quicker. These programs are usually subsidized by the US government, but for those of you who prefer to avoid the help of “Big Brother”, other charities, organizations and individuals can also subsidize interest.
Ready to begin your search for homes for sale in Flagstaff? Contact The COLLINS TEAM today to help you understand the process! 928-774-3392