Housing Funds

Yesterday I attended a Home Buyer Education class with the Nashville Housing Fund. Fortunately my Realtor (Marti Klecka) and Loan Counselor (Connie Eddy with Countrywide) have been great about informing me of every step in the home buying and loan processing process, so I had a heads up on a lot of the info. I still learned a ton! There are so many options out there for first time home buyers, I wanted to share a few things with you.

1. First time home buyers qualify for an $8000 tax credit to go towards either your 2008 or 2009 taxes, depending on when you buy your home in 2009. This is a tax credit, not a tax deduction. That means that $8000 is added to your tax value once taxes are complete. If you had to pay $1000 in taxes, for example, you will receive a check for $7000, or if you received money back, you will get the full $8000 in the mail. You must be a first time home buyer, purchase in 2009, and fall within a certain income range. See if you qualify!
2. First time home buyers looking to purchase in Davidson county can qualify for a $7000 Home Down Payment Assistance (not to be paid back until you refinance or sell your home). To qualify you must fall within a certain income range, the purchasing house must be your primary residence, complete home buyer education class, and your home loan must not exceed 35% of your gross income. Purchaser only needs to bring 1% down payment.
   
3. Through the same organization, Nashville Housing Fund, you can also qualify for the Home Ownernership NOW program, which is a loan for up to $8,500 towards your down payment. The amount you can borrow and the interest rate you receive is determined by your income level. This loan must be paid back with $50 per month until the full amount and interest is paid back. Similar guidelines to the Down Payment Assistance apply.
4. Many home buyers qualify for an FHA loan, which is a government insured loan that requires only a 3.5% down payment. Debt-income ratio must be less than 31% of your income, but with good or excellent credit this ratio can be increased. Ask your loan counselor to "run your clues" to see what price loan you can get.
   

My roommate wants me to share a home energy tip. Insulate your water heater! This can save 4%-9% in water heating costs.

"Unless your water heater's storage tank already has a high R-value of insulation (at least R-24), adding insulation to it can reduce standby heat losses by 25%–45%. If you don't know your water heater tank's R-value, touch it. A tank that's warm to the touch needs additional insulation. Insulating your storage water heater tank is fairly simple and inexpensive, and it will pay for itself in about a year. You can find pre-cut jackets or blankets available from around $10–$20. Choose one with an insulating value of at least R-8. Some utilities sell them at low prices, offer rebates, and even install them at a low or no cost."

More information can be found on the US Department of Energy: Energy Efficiency and Renewable Energy website.