If you’ve been following the housing market in recent months, you know that mortgage rates are rapidly on the decline. For many would-be homeowners, buying a house would end up saving them money when compared to the average cost of rent across the country. This is reason enough to start looking at properties, but 2021’s tax credit proposal for first-time home buyers makes the idea of homeownership even more attractive.
There’s More Down Payment Assistance
The Biden administration’s tax credit program increases the amount of down payment assistance available to first-time home buyers. Qualified home buyers could receive up to $15,000 to use toward their down payment. Even better, you’ll receive those funds when you close on the house. That means you won’t have to wait for your tax season to take advantage of the credit.
More New-Construction Homes Are Coming
Believe it or not, there are fewer homes than there are buyers. This makes it hard to get into a house at a price that you can afford. More competition means sellers can ask unreasonably high prices and get them, even if they have to wait a little longer. The Biden administration is trying to address this inequity by encouraging builders to construct an additional 1.5 million homes in the next 10 years. They’re also trying to make those homes more accessible to first-time home buyers with lower incomes.
Even better, they’re trying to get rid of the “exclusionary zoning” restrictions that limit affordable housing and low-income-friendly real estate to the fringes or less desirable parts of local communities. This makes the properties more accessible for those that rely on public transport or just want to get their kids into better school districts.
What This Means for You
If you’re thinking of buying a house in 2021, the expanded tax credit program means that homeownership may be more accessible. The important thing to remember is that prices and interest rates are variable and will change throughout the year. This means you need to be willing to stick to your budget and take your time when searching for properties. Remember, the tax proposal is just that—a proposal. Nothing is set in stone just yet, so waiting may be in your best interest.
When You’re Ready, Apply for Financing
Once you’re ready to buy a house, start looking into financing as soon as possible. Apply online and get pre-qualified before you find your dream home. This will make it easier for you to make a qualified offer quickly.
