There are many resources available for first time homebuyers. It is very overwhelming to purchase a big investment let alone your first large investment. The government has devised plans to assist with home buyers who are purchasing for the first time. A couple of the programs include the Illinois grant and also the first time homebuyer tax credit. Understanding what programs apply to you and how much you qualify for is important when making your purchase.
The state of Illinois provides free money for its residents who are buying a home for the first time and need help with the down payment and closing costs. This money comes in the form of grants. There is currently one first time home buyer grant program available in Illinois. Low-income families can receive a grant of up to $3,000 to help with both the down payment and closing costs. If you have very low income, you may be eligible for a $5,000 grant. Not only is there a state grant but there are also federal grants available to first time homebuyers in Illinois as well. This grant is available through the Homes and Communities program of the United States Department of Housing and Urban Development.
The other resource that first time homebuyers can take advantage of is the first time homebuyer tax credit. This credit has now been extended through March. For this tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase. The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
Every first time home buyer should research what programs the state and government have to offer. There are many benefits that come with being a first time homebuyer and free money is one of them. It is very important to see what you qualify for before purchasing your first home. Take some time to investigate these offers before making the big purchase. The government is encouraging homebuyers to make the investment and to allow for a recovery. If you are looking to purchase take advantage of the system and save some money.