Sacramento's First Time Buyers...and how did the Giants loose tonight?

In light of the fact I am completely annoyed that the Giants' bullpen somehow managed to blow their 3 run lead this evening, rather than watch the rest of the game, I have decided to write a blog instead. I had a really long day and was hoping to relax in front of the tube and watch the Giants win...but I find blogging very therapeutic, so here we are.

So lately, the vast majority of my buyer clients have been first time home buyers. This is truly an exciting time to be a first time buyer! Why?

In many cases, your monthly mortgage payment will be roughly the same as your monthly rent payment. The median home price in Sacramento County in April 2009 was $165,000. Using an FHA loan program, $165,000 with the required 3.5% downpayment ($5,775), the monthly payment comes out to approximately $1,132...that is the fully loaded monthly payment for a 30-year fixed loan at 5%, including your principle, interest, property taxes, homeowner's insurance, and mortgage insurance.

There are some very advantageous tax credits available to first time buyers at both the state and federal level. The California state tax credit is up to $10,000 spread out over 3 years, applies only to new construction homes purchased until March of 2010. There is a cap on the total tax credit of $100M...so the money runs out, and all that make qualifying purchases may not be able to take advantage of the credit. The federal tax credit is up to $8,000 for any principle residence purchased before December 1, 2009. Please check with your CPA to see how you may qualify for these tax incentives.

There are several first time buyer grants and downpayment assistance programs available. Many are based on your profession, household income, number of people in your household, and the city or county where the home is. These programs change all the time, and availability of funds changes all the time too...be sure to work closely with your loan officer to see if you qualify.

All good stuff...the combination of these circumstances is just too much for most first time buyers to resist!

Anyway, in the time it took me to write this post, the Giants LOST to the Mets 8-6! What a joke...Starting pitcher Tim Lincecum got a no decision. GRRR.