Home Buying in Providence>Question Details

R. Demo, Home Buyer in Providence, RI

Are there any programs for first time buyers, with higher incomes, purchasing a foreclosure?

Asked by R. Demo, Providence, RI Tue Jan 19, 2010

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It would really depend on if you are buying an investment property versus a primary residence. If you don't qualify for the first time home buyers tax credit due to your income being over the limits, you can always look into doing an FHA loan, or if needed, look into a 203(k) Rehab loan if whatever you are buying needs work. The interest rates for the FHA loans are in the low 5% range now and can be closed in 45-60 days time. Plus, you only have to put down 3.5% for a down payment as well.

The 203(k) rehab loan is a little more extensive since you have to get bids from a licensed contractor who would be okay with doing the work after the home closes and then getting paid when the work is fully completed.

If you go with a conventional loan, then you're looking at putting minimal 5% down and if an investment property, then you may have to put up to 20% down. If looking to purchase a home to reside in, then you can also try to go with a 100% financing through the USDA program, but you can only purchase properties in certain rural towns, rather than in the city of Providence. A lender would have a list of towns to consider for this type of a program if you were to qualify with your income levels.

I would highly recommend talking with a local bank or mortgage broker in the Providence area to get an idea of what is out there. Much also depends on how much you have to put as a downpayment, if you need closing costs, what are your assets, credit history and score, etc.

There are definitely a lot of foreclosure properties in Providence and even in the surrounding towns that would benefit from someone picking them up and residing in them, or at least renting them out to those who could use a place in this economy.

If you'd like any assistance, I am licensed in both RI and MA. You can check out what the market is doing on my website below. Prudential also has a great website that I can register you on for free and can send you properties for your convenience. Good luck with your search!

Angela Dolber
Prudential Prime Properties
0 votes Thank Flag Link Tue Jan 19, 2010
Hi there, how are you? There are a lot of programs out there for people with higher incomes buying any real estate. Are you looking to finance a foreclosure?

I would love to tell you more about the process, but I need to know more.

I am available and I can set up a meeting for you and I to discuss all your options.

Feel free to call me or email me, if you would like to search for REO in RI, please visit the URL below.

Thank you;

Jorge Muralles
0 votes Thank Flag Link Tue Jan 19, 2010
R. Demo, the tax credit is for any home purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit. Are you looking for higher income levels than this ? Joe
Web Reference: http://www.joedelsesto.com
0 votes Thank Flag Link Tue Jan 19, 2010
Here is a FAQ pulled off of http://www.federalhousingtaxcredit.com

8. Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $235,000. The applicable phaseout to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $138,000. The buyer’s income exceeds $125,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
0 votes Thank Flag Link Tue Jan 19, 2010
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