Programs available for first-time buyers and homeowners

By Malcolm Payne

Payne Realty

A mortgage is a lien on a house that is secured by a loan paid over a set period of time pre-set by the buyer and bank. Typically, monthly payments are over a 10-, 20-, 30- and even 40-year term.

Different programs are set aside for buyers by the state and city for the purchase of homes or updating currently owned homes.

The government is attempting to stimulate the economy on the real estate side by offering a one-time grant up to $8,000, based on 10 percent of purchase price. If you buy a home for $80,000 and your income for a single person is less than $75,000, income for a married couple is less than $150,000, you qualify. The only other stipulation is you cannot be related to the seller, and you cannot sell within three years. Be a first-time buyer and agree to debt counseling by a DOJ-approved counselor.

Current owners can recoup 30 percent of the cost of installing energy-saving features in their homes. Credit up to $1,500 of improvements, including windows, doors, water heaters, furnace and air conditioning.

Credit checks are free, and counseling usually is, too.

Most people with an income can purchase a home. Income consists of money coming on a consistent basis.

Payne Realty is at 318 Park Ave., Rockford. Contact Malcom Payne at (815) 962-4898.

From the September 2-8, 2009 issue

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