Did you know a number of benefits for first time home buyers exist today?
Buying your first home is an exciting, important, and sometimes stressful process. For first time home buyers, special benefits sweeten the deal and encourage sales.
The term first-time buyer refers to individuals who’ve not purchased a home in 3 years. Most first-time buyers range from 18-34 years old, however bounce-back come in all ages.
Whichever category you fit into, you might not know about the benefits available to you. In this article, we’ll go over some of the benefits for first time home buyers.
Mortgage Interest Deductions
Tax rates favor homeowners. In fact, home ownership is often thought of as a shelter from taxes.
For many, the mortgage tax deduction benefit overshadows the intangible benefits, like pride in owning a home.
How can you qualify? Your mortgage balance must not exceed the cost of your new home. Mortgage interest proves deductible on your tax returns. This is a great benefit because interest is the largest part of a mortgage payment.
Property Tax Deductions
Property taxes for your first home are deductible for income tax purposes as dictated by the Internal Revenue Service. Vacation homes can also benefit from this tax deduction.
Most people consider their first home a starter home. When you decide to move, you’ll benefit from gaining capital assets.
How does this work?
If the profit you make on your home is more than what is allotted for any tax exclusion, the profit is considered a capital asset. These profits receive special tax treatment.
Even if you profit from the sale of your home, the taxable portion of that profit remains small.
Use Your Mortgage To Build Equity
Each month that you pay your mortgage, you not only pay interest, you also pay the principal balance of the loan. The more of this you pay off, the more equity in your home you secure. This means more ownership for you.
Your Home Appreciates
The real estate market is volatile. It occurs in cycles.
Across the board, homeowners see their investment as a safeguard against inflation of the market.
First Time Homebuyer Loans
First time homebuyer loans come with low down payments, reduced interest, and limited fees. They’re offered to first time home buyers through the Federal Housing Administration.
This type of loan acts as a benefit for first time home buyers because of its minimal restrictions. Consider a first time home buyer loan a large down payment is out of reach, you cannot meet high-interest payments and fees, or your credit score is low.
All of these factors make these loans too good to miss out on for many buyers.
Benefits For First Time Home Buyers in 2017
As you can see, many tangible benefits for first time home buyers exist today. From tax deductions to an easier loan process, buying a home offers more than pride in ownership.
Starting your first home search? Contact us today to learn more about mortgage loans that work for you!