Are you interested to get this free cash? The thing is you need to have a good credit score to get it. So here are the important steps you have to do get $8,000 for free.
Tax Credit for First Time Buyers
You are probably not aware that the program called First Time Home Buyer Tax Credit was extended. Instead of ending in 2009, sit was extended further into 2010. Simultaneous with the extension, the program was slightly modified and it now includes home buyers who will Move Up.
If you are a first time home buyer, you can get a tax credit windfall of 10 percent of the sale price up to $8,000. On the other hand, you will get 10 percent tax credit up to $6,500 if you belong to the Move Up buyer category.
To qualify for this tax credit, you need to make sure that a contract for the new home will be signed by April 30, 2010. The mortgage loan must be closed also by June 30, 2010.
There is no need to pay this money back if you live in your home for at least 36 months. The cash is ultimately yours without question.
In case you qualify, it does not mean that you have to owe taxes so that you can get the tax credit. As long as you qualify, the tax credit is yours. If you do not owe taxes and you qualify for the free money, then a check amounting to $8,000 will be sent to you.
Challenges When Buying a Home
To get the free government money, you need to purchase a home. Naturally, you will probably need a mortgage so you can pay for the new home. This is where things get challenging. Most lenders will only consider your loan application if you have a credit score of at least 620.
Other reasons that may hinder you to get an approval may include insufficiency of your income against your current debt payments.
Other items in your credit report like unpaid judgments or delinquent student loans are also factors that may affect your capacity to qualify for a mortgage. You may have to get a new credit card and use it wisely so you can reestablish your credit. This will also show your capacity to effectively manage your debts.
The Crucial Step Is to Improve Your Credit Score In Order to Qualify
If your credit score is not good, then it is not the end of the world for you. Having bad credit score is not and will not be a reason why you can not get your dream house.
Whether you believe it or not, your credit score can be raised even if you have past history of bad credit. It is not proper to think that a bad credit is a permanent noose around your neck.
Time heals everything. In due time your credit score will improve as long as you take positive actions. You can certainly get the free money offered by the government once you qualify for a new home loan.
