Man! It is a good time to be a “first-time homebuyer!”  Not only are home prices at their lowest in years (at least in many parts of the country) and mortgage interest rates in a very affordable range,  but now, according to an article in the LA Times, the government has even announced that home buyers using the newly instituted tax credits can turn that break into cold, hard cash. That amount, up to $8,000, can be used for things like higher down payments, points paid to lower the loan interest rate, escrow fees or other various closing cost charges.

There are some strings attached. In order to take advantage of this cash offer:

• Borrowers must be “first-time homebuyers,” meaning they have not owned a home for the past three years. 
• Single borrowers must make no more than a gross income of $95,000 and married couples can make no more than $170,000 to qualify.
• Borrowers must buy their homes with FHA loans, in most cases this means providing a down payment of at least 3.5 percent of the home purchase price.
• Homebuyers must close their home sales before November 30 of this year.
• Buyers must stay in their homes for at least three years or they will have to repay the tax credit.

So if you are ready to get into a home, and have even a little bit of money saved up for a down payment, now is the time! Lock in your interest rate today, and start the paper work.  You have less than six months to make use of this free $8,000.