• Value
• FHA First Time Home Buyer Mortgage Program
• Tax Credit
• 10 Year Real Estate Tax Abatement
• Low Risk

SAMPLE TRANSACTIONS:

REASON ONE: Value

Everyone can appreciate the low price point, minimal condominium fees and virtually no taxes! We have done the math, and it is more prudent to buy in this brand new building then to rent a far less superior product in the area. In addition each unit includes 1 car parking in a secure, gated lot. The generous finish package includes: stainless steel appliances, carbonized bamboo flooring, European style walnut laminate cabinetry in kitchens and bathrooms, subway tile backsplashes and shower surrounds, fabrique noir daltile bathroom tiles, brushed chrome hardware, sleek lighting package and delta faucets. Lots of bang for the buck!!!

REASON TWO: FHA First Time Home Buyer Mortgage Program

First time home buyers can purchase using a special FHA (Federal government guaranteed) first time home owner mortgage program, that requires just a 3.5% down payment (approximately $3,800-$8,500 depending on unit type). Additionally, with the FHA program, the developer will be able to pay for any buyer’s settlement costs through a “Seller assist,” which means that the sole out of pocket expenses will be the 3.5% down payment.

REASON THREE: Tax Credit

Here are six things you need to know about the freshly-enacted $8,000 first-time home buyer tax credit.

1. Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home – although it's capped at $8,000 – and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.
2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.
3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.
4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.
5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.
6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

REASON FOUR: 10 Year Real Estate Tax Abatement

One of the most significant incentives for new housing development and housing rehabilitation in the City of Philadelphia is the 10-year real estate tax abatement offered by the Board of Revision of Taxes (BRT). The abatement freezes the real estate tax amount at the current level for 10 years, and is also 100% transferable in a sale.

REASON FIVE: Low Risk

Philadelphia Business Journal – Thursday, October 2, 2008

The risk of housing prices falling further by 2010 in the Philadelphia area is far lower than in most U.S. metropolitan regions, according to the latest U.S. Market Risk Index by PMI Mortgage Insurance Co.

PMI said there was a 2.1 percent chance prices would be lower in the area in two years. That compares with 99.5 percent in the two areas with the highest risk: Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla., and Riverside-San Bernardino-Ontario, Calif.

Areas with the least chance of a price decrease included Dallas and Pittsburgh, where the risk was less than 1 percent.

The index considers factors including labor market statistics, housing prices and mortgage rates.

"[The $7,500 reserve] will make borrowers less likely to fall into default," said Ken Goldstein, an economist with the Conference Board, "since it gives them a nest egg should they run into trouble."