New Year’s Resolution Ideas for Buying a Home

New Years Resolution Ideas for Buying  a HomeNew Year’s Eve is just around the corner, which means that if you haven’t already started thinking about your New Year’s resolutions, it’s time to get on it! If one of your New Year’s Resolutions is to figure out how to buy a home in the coming year, then make a series of smaller, more manageable resolutions to help you reach the big one. Here are some ideas to help you prepare!

Set a Savings Goal

If you’re buying a new home, you’ll most likely need to make a down payment on that home, and it could be the full 20 percent, or a lesser amount. Most people don’t have the kind of cash lying around without diligently saving for months or years, which means you should start saving now. Even if it’s only a little bit, having a clear picture of your finances and committing to putting away a certain amount each month can help a lot in the long run. Keep in mind that you will most likely be approved for a loan, even if you don’t have the full 20 percent down payment.

Fix Your Credit

Your credit will have an impact on whether or not you get approved for a mortgage loan, and if so, what your mortgage loan interest rate will be. If you have poor credit, you should start working to fix your credit asap. This means putting a plan in action to:

 

    • Pay down your debt;
    • Making all payments on time and in full;
    • Reduce your credit card balances or stop using your credit cards completely; or
    • Consolidate your debt.

 

If you have poor credit, you may be unable to secure a loan, or may get stuck with a high interest rate.

Get Your Documents in Order

Alright – you’ve fixed your credit score, saved up a good chunk of change for a down payment – what’s next? Now you need to start getting all of your mortgage loan documents in order. In order to get pre-approved for a loan, and certainly before the mortgage lender will issue you a loan, you’ll need to provide a variety of documents. These documents will likely include: at least two years’ worth of tax returns, W-2s, employment history, income/bank statements, and proof of assets. The sooner you start organizing these documents, the sooner you’ll know where you fall short and can start taking steps to correct this.

Find the Perfect New Home

Of course, before you can buy your new home, you have to find it first! Take time to explore your options, look at homes in different neighborhoods, determine your budget, and consider whether you want to buy brand new or used. Newer homes often have many benefits that older homes lack, require little maintenance, and can be personalized to fit your style!

Our Home Builders Can Help

At Hayden Homes, we have your dream home for sale! Come see our new homes sprinkled throughout the Northwest, in Washington, Oregon, and Idaho. Buying your first home is exciting – let us help!

Tips for Getting Preapproved for a Home Purchase

Tips for getting preapproved for a home loanBefore you can make an offer on a new home, and sometimes, before a realtor will even take you to see a new home, you must have a preapproval letter from a qualified lender. Getting preapproved means preparation and an understanding of what lenders are looking for. Here are some tips to help you along the way!
What Is a Home Loan Preapproval Letter?
A mortgage pre-qualification or preapproval is an estimate of how much home you can afford based on an estimate of how much a lender is willing to give you. It’s important to remember that a preapproval is not always 100 percent accurate. For example, if you get preapproved for $300,000, the bank may end up only giving you $279,000 as more granular details about your financial situation are uncovered. However, a preapproval is important because it will allow you to start looking at homes in your price range – or at least within the ballpark.
What Goes Into a Home Loan Preapproval?
While the preapproval process is not as comprehensive as the loan underwriting process, it will take into account numerous different factors. Some things that a mortgage lender will likely consider before pre-qualifying you include:
  • Proof of income – Understandably so, your lender will want some sort of proof of income, such as W2s, tax statements, or pay stubs.
  • Knowledge of existing debts – You’ll also need to provide your lender with any information about existing debts that you have, including car payments, credit card debt, student loan debt, existing mortgages, and other financial obligations that you might have.
  • Your credit score – Your credit score can affect the amount of money you are able to borrow, as well as the rate you’re offered. The higher your credit score, the better your chances are of being approved with a favorable interest rate. Start working on improving your credit score now. It takes persistence and patience, but you can do it!
In addition to the above, you’ll also need to provide personal information, such as your date of birth and Social Security number. Have this type of information ready when the time comes to get preapproved.
Tips for Getting Preapproved for a Home Loan
You don’t just want to get preapproved for a mortgage loan; you want to get preapproved for a specific amount that is reflective of the value of the home that you want. This may mean spending time – months and even years preparing your finances for preapproval. Some tips to improve your chances of preapproval include:
  • Avoid making any large financial purchases or changes in the months preceding your home purchase (if you can help it).
  • Get your financial documents in order – be prepared to present at least two years’ worth of tax documents. This can take anywhere from a couple of hours to several days to gather, so this is something you can get done well ahead of time.
  • Ask your preferred lender for more information – the preapproval process can be a little complex, so don’t be afraid to ask for more information and counsel. Feel free to reach out to us if you have questions!
Finding the Perfect New Home for You
If you’re looking for a new home in the Northwest, not only do we have brand new homes for sale in Washington, Oregon, and Idaho, but we work with a preferred lender that can help you out. Contact us today to learn how we can help get you into your dream home.

Why you Should Look at Buying a New Home in Hayden, ID

New-Homes-in-Hayden-North-ThumbnailFor many, moving to a new area can be intimidating. It can be hard to be without one’s familiar community! Keeping that in mind, a move to a new home community in Hayden, ID is worth the moving aches and pains. Hayden, ID in Northern Idaho is one of the most beautiful places around. Its citizens have a high quality of life and our Hayden Homes’ brand new homes are breathtaking. No matter how you feel about relocating, our new home community in Hayden will change your mind for the better!
Top Reasons to Live in Hayden, Idaho
Hayden may very well be one of the most beautiful places to live in the entire country. Tucked in amongst tall, thick pines and gorgeous mountain views, and sitting on the western shores of Hayden Lake, living here is truly unique. It’s an outdoor lover’s dream. Countless recreational opportunities are available to you including canoeing, boating, kayaking, beach-going, golfing, hiking, exploring, and more. As a suburb of Coeur d’Alene, Hayden also offers plenty of opportunities in terms of dining and entertainment, too.
Cost of Living in Hayden
In addition to the fabulous quality of life Hayden residents have, the cost of living and real estate in Hayden at the moment is another reason to invest now. Hayden isn’t yet too expensive, but home prices are rising so now’s the perfect time to buy if Hayden is of interest to you! According to a Zillow Market Report, the median home price in Hayden is $318,600, and home values have increased a whopping 17.4 percent over the past year! Zillow predicts another 2.5 percent increase over the next 12 months.
Reasons You’ll Love Your New Hayden Home and Community 
If the Hayden area sounds nice, but you’re not totally convinced that a move here is right for you, our Hayden Homes’ community may have you convinced. We think you’ll love these features of our new homes and Hayden community:
  • Master-planned community. A move to a master-planned community like Hayden North means a quaint neighborhood atmosphere, a park that’s perfect for young kids, plenty of walking paths, and more.
  • New home warranty. Our homes come backed by our new home warranty, which gives you peace of mind when you’re making a purchase as significant as a new home.
  • Convenient financing options. We want to make sure that the process of purchasing your new home is as straightforward and simple as possible, which is why we work with preferred lenders to help you secure competitive financing.
  • Amazing new homes. The quality of our homes speaks for itself. Enjoyed by thousands across the Northwest, our brand new homes feature high quality building materials, energy-efficient appliances, spacious living areas, and custom features upon request. Explore our Hayden, ID community to learn more about what’s available.

Plan Your Trip to See Our New Real Estate in Hayden, ID
If you want to live in a community where spending time outdoors is a key part of life, Hayden is the place for you. If you love Hayden Homes but aren’t set on Hayden, ID or Northern Idaho, keep in mind that we have brand new home communities all throughout the Northwest, including Idaho, Oregon, and Washington. We are ready to help you find your dream home, whether you’re buying your first home or upgrading to your next. Come check out our new homes for sale in a community near you, and learn more about how we can serve you as a potential homebuyer! 

10 Reasons You Could Be Happier in a Smaller, Newer Home

10 Reasons You Could Be Happier in a Smaller, Newer HomeLarge homes can be fantastic, especially for growing families. At the same time, smaller, newer homes have benefits too, especially for older homebuyers who are ready to downsize, or first-time homebuyers who are looking for something modern and low maintenance. Here are 10 reasons why you may be happier in a smaller, newer home:
1. Smaller Homes Are Less Expensive to Buy
Perhaps one of the first reasons that buyers turn to smaller homes is that these homes are, on average, less expensive to buy than larger homes. A less expensive home typically means a lower down payment, a lower mortgage, and more financial flexibility.
2. Smaller Homes Are Less Expensive to Care for, Decorate, Etc.
Not only is a smaller home less expensive to buy, but it’s also less expensive to fill with furniture, decor, repair, paint, cool, heat etc. This means that the savings keep on giving, year after year.
3. Smaller (Newer!) Homes Mean Less Maintenance
Don’t want to spend years of your life on maintenance tasks, like fixing the leaking roof or replacing the floors? With a brand new home, you don’t have to. And besides, if you do want to engage in a renovation or repair project, a smaller home will be more manageable than a larger home.
4. Smaller Homes Mean Less Cleaning
No one wants to spend their free time cleaning, and with a smaller home, the amount of time that you spend dusting, sweeping, mopping, vacuuming etc can be significantly reduced. Smaller homes are easier to keep clean.
5. Small Homes Are Greener
Whether you care about saving on your energy bill each month or want to be environmentally friendly, a smaller home can get you there. Smaller, newer homes are more energy efficient and reduce a homeowner’s carbon footprint.
6. Smaller Homes Ask You to De-clutter Your Life
With a smaller home, there isn’t enough room for all of your clutter. Which means that you’re forced to get rid of those things that you truly no longer need. This can be both physically (you need the space!) and psychologically rewarding.
7. Smaller Homes Encourage More Family Interaction
Smaller homes have fewer rooms so family members are naturally spending more time together. This can help to foster strong familial ties and a sense of togetherness within the home.
8. Smaller Homes Can Help You Let Go of Material Possessions
When living in a smaller home, it’s difficult to have an overwhelming amount of material possessions, plain and simple. Realizing that your happiness is not derived from material items can lead to a higher quality of life as you turn your attention more toward friends, family and neighbors.
9. Smaller Homes Give You More Time
With a smaller and newer home, you’ll likely have more spare time. This is because there will be less maintenance and less pressure to work overtime to pay your high mortgage. This means that you’ll have more time to do the things you really love including hobbies.
10. Smaller Homes Provide You More Financial Flexibility
Finally, having a smaller home provides you with more financial freedom. Often times people will stretch themselves financially to get into the biggest possible house. When you don’t have to stress about mortgage payments – in addition to life’s other expenses – you’ll have more financial flexibility when it comes to taking a trip, making a purchase, or taking time off from your job.
Come See Our Brand New Homes Today
We know that the one size fits all approach doesn’t work for everyone. But if you’re interested in downsizing or buying a newer, smaller home in the Northwest, we have homes of all shapes and sizes that you’re sure to love. Come see our new homes in Washington, Idaho, and Oregon today. View our gallery of both large and small home plans HERE.

Tips on Evaluating and Locating Schools When Buying a New Home

If you’re a parent who is planning to make a move with your family, finding a great school for your child is most likely a top priority. Most parents prioritize good school districts when looking for a new neighborhood and home in which to live. But finding a great school can be challenging – where does a parent even begin? If you’re looking for new homes for sale and want to be sure that a new home is located within a great school district, here are some tips.

Do your research to find good schools near youDo Your Research

The first step in finding a good school that’s close to the Northwest neighborhood in which you want to live is to do your research. In today’s digital world, most information about schools is available online. And with many parent forums available online too, you can likely gather a sense of a school’s culture well before your child ever attends. In fact, you can even look up things like the number of kids who benefit from the free school lunch program, the student-to-teacher ratio, test scores, school ratings and more.

Think about things other than test scoresThink About Things Other Than Test Scores

It can be easy to look at a school, see that its students perform very well, and decide that that must be the best school for your child. What other needs does your child have? Does the school offer a great art or music program? An accelerated math program – perfect for a child who’s a high achiever? A dual-immersion program where your child can learn Spanish, or speak in their native language? In regard to school sports, does that school offer the competitive sport or activity that your child is interested in?

Find a neighborhood you likeFind Neighborhoods You Love, then Look for Schools

Another tip when trying to find the right school for your child when you’re looking for your dream home is to start with neighborhoods you love. If you do the opposite – start with schools that you love – you may end up falling in love with a school in a neighborhood that you can’t afford or isn’t practical for your daily commute. Once you’ve found a few neighborhoods that are perfect for you and your family, then start looking at schools. This will immediately cut down on the myriad of options, and may help you to choose the location for the home of your dreams. After all, it takes a community to raise a child right?

Visit the school in personGo See the School in Person

Finally, before you enter a buy-sell agreement and decide where it is you’ll be living for the foreseeable future, consider taking a trip to the prospective school. Does the school mesh with your vision for your child’s education? How does your child feel about the school environment? How does the school feel about school security? Is the administration and staff helpful and courteous? If all goes well, you may have just found the perfect neighborhood for your new home!

View School District information on our websiteSchool-District-Community-TabWe Provide School District Information on our Website

One final tip to help you during your new home search is to know that we have done some of the leg work for you. We provide a list of neighborhood schools, for all of our communities, on our website. You can find this information, by navigating to a community and then clicking on the “Schools Tab”. Plus, our knowledgeable Community Managers are always here to help you through this process.

We Have New Homes for Sale in Neighborhoods Throughout the Northwest

At Hayden Homes, we know that you’re looking for not only a new home but also a new neighborhood and community. We are building brand new homes in cities throughout Washington, Idaho, and Oregon and have prioritized the things homeowners care about most, including proximity to great schools, growing communities, and recreational opportunities. If you’re buying your first home or ready to upgrade to your dream home and want to learn more about our homes for sale, call us today! We are here for you.

6 Essential Tips for First Time Homebuyers

Essential Tips for First Time HomebuyersBuying your first home is one of the most exciting ventures of your life. Whether you’re buying an existing home or working with a builder to construct a new home, there are a lot of things you need to keep in mind to set yourself up for the smoothest, most enjoyable experience possible.

1. You’ll Need to Budget for More than your Mortgage

One common mistake first time homebuyers make is building their budget around their new mortgage. In reality, your monthly expenses will be more than your mortgage payment. They’ll include:

  • Property taxes;
  • If applicable, mortgage insurance;
  • Utilities;
  • Maintenance costs;
  • Homeowner’s insurance; and
  • If applicable, HOA fees.

2. Don’t Open Any New Credit Lines Before you Close

Pay close attention to your credit while your mortgage application is pending, because everything you do will affect your credit score and your application. The time to make and large purchases or do things like finance new furniture for the home is after you close and move in, not while you’re waiting for approval.

3. Get Pre-Approved

Since the recent housing-market crash, securing a loan can be harder than it used to be. In addition, the housing market is competitive. Therefore, it’s better to get pre-approved before you start looking for a home or make an offer. Wherever you decide to go for your home loan, you can submit your financial information and get a pre-approval letter for the max amount that they are going to loan you. You may find, through this process, you can afford more than you think.

4. Be Willing to be Flexible – And Creative!

Don’t go into the home search with a specific type of home in mind. Instead, go into it with specific needs in mind, like the number of bedrooms you need or a home with a driveway and a garage. Do you want an open floorplan? Do you want something new with modern appliances and building materials? Asking yourself these types of questions will help you narrow down the homes you look at based on what fits your needs.

5. Determine your Options for Tax Credits and Other Perks

Many states and municipalities offer first time home buyers tax credits and other perks to promote purchases. You might qualify for a low interest mortgage loan, a specific tax credit, or a special assistance program that makes homes more attainable for first-timers. Your real estate agent and loan officer, should be able to talk to you about the various perks and programs you qualify for.

6. Don’t Get Too Emotionally Attached

This one’s as important as the others, and it can be more difficult. When you visit a home for sale or look at a model home with a builder, it’s easy to fall in love. You might immediately see what you’ll want to change in the home and how you’ll fill its spaces with your family. But until the day you close on a home, it isn’t yours.

There are different things that could cause you to have to back out of a deal between making your initial offer and closing on a home. If your buying resale, maybe the home inspection comes back that there’s substantial water damage inside the home’s walls, which means you’ll have to begin a large-scale renovation project before you can move in. Maybe something comes up in your personal life that causes you to have to put the home buying process on hold. Keeping an even head throughout the home buying process will help you make smart decisions and avoid heartbreak if things don’t pan out.

Move into your Dream Home by Working with an Experienced Home Builder

At Hayden Homes, we work with first time and experienced home buyers and we work with preferred lenders who are attentive and supportive during this exciting time in your life. Whether you’re looking in Oregon, Washington, or Idaho, our team can help you move into a home that’s just right for you and your family. Contact us today. We look forward to answering any questions you may have about preparing for, and making, your first home purchase.

Mortgage Insurance: What You Should Know in 2018

What Is Mortgage Insurance? When home buyers are approved for a home loan, mortgage insurance may be required. Here’s a summary of what you need to know about mortgage insurance in 2018.

What Is Mortgage Insurance?

As explained by the Consumer Financial Protection Bureau, mortgage insurance (often called PMI or Private Mortgage Insurance) is a type of insurance that is designed to protect your lender. In the event that you fall behind on your mortgage payments, your mortgage insurance will kick in, ensuring that the lender receives the payments they’re owed.

When Is Mortgage Insurance Required?

Mortgage lenders want to make sure that when they’re lending out tens and hundreds of thousands of dollars borrowers are going to repay that money. If the bank questions your ability to repay your loan in the slightest (i.e. you do not make a big enough down payment (20 percent), you have average credit score or limited credit history, etc.) then you may be required to carry mortgage insurance. Mortgage insurance is also more common for certain loan types; FHA loans and USDA loans typically require mortgage insurance. In some cases, private mortgage insurance may help you to qualify for a loan for which you would otherwise be denied.

Paying for Private Mortgage Insurance

In most cases, you will not pay a lump sum amount for mortgage insurance; rather, the payments will be included monthly with your regular monthly mortgage dues.

According to Freddie Mac, the cost of your PMI depends on your loan-to-value ratio (the amount of money that you owe on your house vs. the amount that your home is worth) and your credit score. In most cases, a typical borrower will pay between $30 and $70 per month for every $100,000 borrowed. So if you borrow $200,000, the $30-$70 amount will double.

Should I Move Forward with Mortgage Insurance?

Whether or not you should get mortgage insurance really depends upon your financial situation. If waiting another five-to-10 years to save up enough for a down payment is the only other alternative, you may want to get a foot in the door with home-buying by choosing PMI. If you’re only a year or two away to your goal down payment and credit score, waiting may save you more money over time. You may also be able to cancel your PMI after a certain amount of time or when refinancing to take advantage of better interest rates. Talk to your lender to learn more about your options.

Financing Options and New Homes for Sale

Are you buying your first home? Thinking about moving to something bigger? Looking to relocate to a great community? We can help. At Hayden Homes, we have homes for sale throughout the Northwest, including in Idaho, Washington, and Oregon. Browse our floor plans here and start building your plan to get into your dream home today!

The Dos and Don’ts During the Home Loan Process

In order to be approved for a new home purchase, potential homebuyers must work closely with their loan officer and provide a variety of documents including financial documents, proof of employment, credit check, and more. With your brand new dream home on the line, there’s a lot at stake, so here are some dos and don’ts to consider during the home loan process:

What-to-Do-during-the-home-loan-process

Dos: Things to Do While Your Home Loan Is Being Considered

As you’re getting your home loan documents together, or as you are waiting for a loan underwriter to approve your loan, there are a number of things that you can do to improve your chances of being approved. These include:

  • Do include all financial information in your loan application. Failing to disclose something can result in a delay in approval.
  • Do use the money you saved for your down payment, just for that. Your down payment. Odds are, you’ve likely saved for a while to pay for your down payment and you’ll want to use that money solely for that purpose.
  • Do be honest. Fudging documents to improve your chances of getting approved won’t work, and will likely hurt your chances instead.
  • Do follow up with the loan officer. Chances are the loan officer in charge of your loan is processing multiple other applications simultaneously. With so much on their plate, it never hurts to check in with your loan officer on a regular basis and ask questions about the loan process. Be responsive, so that the process can speed along.

Donts-during-the-home-loan-processDon’ts: Things to Avoid During the Home Loan Process

Just as there are a number of things that you can do during the home loan process, there are also a number of things that you should avoid doing when applying for a mortgage loan. These include:

  • Don’t open new credit cards or apply for other loans. Financial changes right before applying for a home loan, or during the approval process, can harm your chances.
  • Don’t quit your job, change jobs, or become self-employed. A bank will only give you a loan if you can prove that you have the means to repay it, which typically means a steady stream of income. Quitting or changing jobs right before getting a loan can result in home loan denial.
  • Don’t make any unusual or large purchases. Remember, a lender will consider all of your financial history and financial transactions before approving your loan. Things like buying a new car, enrolling in graduate school, or even buying large furniture before you buy your home, could hinder your chances of being approved.
  • Don’t take other financial risks/changes. This includes things like co-signing on a purchase for someone, changing to a new bank or making a large deposit into your bank. Your lender will want to ensure that you are financially stable and any of these things can hinder your chances of being approved.

Learn More About the Lending Process and Buying a New Home Through Hayden Homes

If you have fallen in love with your dream home by Hayden Homes, the next step is securing financing. At Hayden Homes, we not only have brand new homes for sale in Washington, Oregon, and Idaho, but we can help you get in touch with our preferred lender to get the process started. Your preferred new homebuilder is ready to get you into your beautiful new home today!

Contact us today, we look forward to working with you!

 

What Is Private Mortgage Insurance and How Do I Avoid Paying it?

When you are buying a new home and asking a lender for a mortgage loan, there are a lot of different documents and financial terms that you will need to review and become familiar with. And depending upon your financial situation, you may be asked to purchase Private Mortgage Insurance (PMI) in order to qualify for your loan. Here’s an overview regarding what you need to know about private mortgage insurance, and how you may be able to avoid paying it:

Buying a new home with Zero down home loan - USDAPrivate Mortgage Insurance – What’s That?

Private mortgage insurance, or PMI, is a type of insurance that protects the lender from losing money if the borrower ends up not making payments on their loan, eventually resulting in foreclosure.

PMI isn’t always required, and there are many homeowners throughout the nation who do not have PMI coverage. However, your lender may require you to purchase PMI if:

  • You are asking for a conventional loan; and
  • You are making a down payment of less than 20 percent.

How-much-does-PMI-costHow Much Does PMI Cost?

How much you have to pay for private mortgage insurance depends upon how much you are borrowing, with Bankrate.com explaining that the average rate is between .3 and 1.5 percent of the original loan amount per year, with a lower percentage being based on a greater down payment amount. ConsumerFinance.gov describes more about the process of making payments, detailing that premiums are typically added to the monthly mortgage payment. It’s important that you review your loan disclosure and closing documents so that you know exactly how much you may be liable for.

How to avoid paying Private Mortgage InsuranceHow to Avoid Paying for Private Mortgage Insurance

There are drawbacks and advantages to PMI. The biggest advantage is that if you agree to purchase PMI, you may be able to qualify for a loan that you otherwise would not be eligible for; the biggest drawback is that you have to pay more every month to insure your loan. It is very important that you discuss your options with your lender before you commit to anything.

It is sometimes possible to secure a conventional loan without PMI even if you don’t put 20 percent down. In exchange, you may be offered the loan at a higher interest rate. There are also other types of loans available that you may consider, such as FHA loans. Read our post on How to Determine which home loan is right for you!

Spacious New Hayden HomesHayden Homes Can help Get you get into Your Dream Home

Being a homebuyer who is looking into buying a new home, even if it’s not your first home, comes with a number of questions. At Hayden Homes, we can help you answer those questions and get into your dream home.  To view our new homes for sale throughout the northwest, including in Washington, Oregon, and Idaho, call our Online Home Concierge today at 541-797-0097, or contact us online.

What Is a Mortgage Credit Certificate and How Can It Help Me as a First-time Homebuyer?

First-Time-homebuyers-using-an-IRA-photoIf you’re thinking about buying a home, or have recently bought a home for the first time, understanding the Mortgage Credit Certificate program could help you to save money when it comes time to pay your taxes, and could even help you to qualify for a loan. Here’s what you need to know about the mortgage credit certificate program and how it may help you as a first-time homebuyer.

Understanding Mortgage Credit Certificate: The Basics

As explained by the National Homebuyers Fund, Inc., a mortgage credit certificate–or MCC–is a tax credit from the Internal Revenue Service (IRS) that reduces how much an individual must pay in federal taxes by subsidizing the monthly mortgage payment. The site further explains that the benefits are twofold: first, the MCC is based on the amount of interest that the homebuyer pays annually, and can also help the buyer to qualify for the loan initially because it increases net earnings and decreases tax liability. Indeed, the reduced tax liability is a dollar-for-dollar amount based on the mortgage interest paid yearly (as a note, there is a cap on the amount of tax liability that can be reduced).

The purpose of an MCC is to help lower-income families afford homeownership for the first time.

State and Local Governments and MCC Programs

An MCC should not be confused with the federal first-time homebuyer credit. Unfortunately, the federal first-time homebuyer credit of $8,000 offered by the IRS has expired, but there are still many state and local governments that offer the MCC for residents. What’s more, the MCC continues year-after-year, so long as you continue living in your home, and continue paying your loan. Here’s how eligibility for the MCC typically works:

  • The candidate must be a first-time homebuyer;
  • The candidate must meet certain income requirements; and
  • The home that is purchased must be eligible (based on location and purchase price limits).

Worried About Qualifying for a Home Loan?

If you are worried about qualifying for a home loan in order to purchase your first home due to a lack of sufficient income, a Mortgage Credit Certificate may help you get approved. This is because many lenders will count the offset of the portion of the mortgage interest as a tax credit, not a tax deduction, bolstering an applicant’s annual income.

How to Find Out More

If you are interested in the MCC program, check in with your state to determine whether or not an MCC is offered where you live.

If you don’t qualify for an MCC, there are a multitude of other programs and financing options that may be available (Read our Blog about different loan options here) if you’re buying your first home in Washington, Oregon, or Idaho. To learn more, reach out to our Hayden Homes team members for questions – we have simple financing options available, and can put you in touch with one of our preferred lenders who can help you get into your dream home as soon as possible! Contact us today to learn more about financing, as well as new homes for sale in your area.