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President Barack Obama’s $8,000 housing credit for new homeowners was supposed to expire at the end of November, but Congress has graciously extended it until April 30, 2010 and added an incentive for current homeowners.
The housing credit is something to be thankful for because home prices have fallen tremendously to offer great deals and to re-ignite a failing housing market. And the credit extension enables people who are building a home to relax through the three to six month new construction process.
First-time homebuyers get up to an $8,000 credit that can be used for a down payment and closing costs, and current homeowners get up to $6,500 toward the purchase of another home if they have lived in their home for at least five years.
The $8,000 first-time homebuyer credit came in handy for me in because I was able to replenish my savings account after nearly depleting it from putting up a down payment and closing costs, paying off credit card debt and going on several vacations.
Click here for more information on the housing credit.

The U.S. recession has caused unemployment to continually rise, and Americans are losing their homes for the worst foreclosure rates since the Great Depression in the 1920s.
However, the gap between a mortgage payment and rent has shrunk tremendously, and housing sales are on the rise because first-time homebuyers are taking advantage of falling home prices from foreclosures, low interest rates and President Obama’s $8,000 tax credit.
So while many Americans are losing their jobs and their homes, it’s a great time to buy a house if you’ve never bought a home or haven’t owned one in the last three years.
Personally, I have made the leap of faith and taken advantage of the tax credit to begin building my first house. I’m being rewarded for waiting out the housing boom because I’ve now got a lot of land and a big home for half what I would have paid two or three years ago.
In fact, the recession initially began because some Americans got into homes they knew they couldn’t afford and banks eagerly accommodated them with adjustable rate mortgages even if they had shaky credit and unstable employment.
The silver lining of the recession, record unemployment and record foreclosures is that banks have lowered interest rates to encourage people to take on a mortgage, Obama’s $8,000 tax credit helps with the down payment for that first home and great price deals await from the large volume of existing homes on the market from foreclosures to go along with a new homebuilding companies’ large inventory.
News of all the foreclosures can scare anybody from stepping out to make that first home purchase. But the majority of U.S. homeowners are not in jeopardy of losing their homes and most Americans are employed.
And with rising rents and lowering home prices, owning a home is now only $211 more per month than renting compared to $777 more before the recession, according to an Associated Press study. In some areas, such as Atlanta and Cleveland, the difference between owning and renting is less than $100 per month.
And experts expect home prices to fall faster than rental rates this year. So this year is the perfect time to switch from renting to purchasing as long as you have good credit and you stay within your housing budget to avoid getting in over your head which led to this recession and these current foreclosures.
I’m taking advantage of the new buyer’s market after patiently waiting out the outrageously priced housing boom in the former seller’s market. Let my leap of faith inspire you to take that giant step. View a sample of the 27 pictures of my first house in various building stages here, and add me on Myspace to see all of the pictures.

By Teneshia LaFaye

I recently wrote a book with my teenage son to put high school students and college students on the right financial track. In our book, What My Mom Taught Me About Money, teens and young adults learn about checking accounts, credit scores, credit cards, cash advances, investing and more. Preview or buy What My Mom Taught Me About Money here. The book also is available on amazon.com and barnesandnoble.com.

Follow me on Twitter: www.twitter.com/teneshialafaye
Add me on Myspace: www.myspace.com/tlafaye

If you were sitting on the sidelines of the housing boom, like me, before the housing industry crashed, I’m here to tell you it’s safe to get in the game now.

Now that we’re in a recession, home prices are down and interest rates are at their lowest in nearly a half century. Plus, there are first-time buyer incentives, such as a $8,000 tax credit toward a home purchase.

I’ve tested the waters, and I’ve got a very low fixed interest rate and a great price to build my first house on a prime lot in a highly-valued Jacksonville community.

I’m so glad I waited on home prices to fall before applying for a mortgage. I almost got sucked into getting an adjustable rate mortgage for a $300,000 house three years ago. I also was looking at a $200,000 townhouse. This was before the current recession when investors were flipping houses and buyers were more than willing to get adjustable rate mortgages to buy their McMansion dream houses.

Now, the $300K house I was looking at before is going for $100,000 less and the townhome is down by $80,000. And now I’m building a house for far less than I would have three years ago on a big lot.

My strategy was to wait until prices fell into a reasonable range because we all know what goes up must come down and I just thought houses weren’t worth as much as advertised. Plus, waiting enabled me to boost my credit from the 500s to my current 722 FICO score.

So if you’ve been waiting, like me, for the right time to buy a house, now is the right time to get a great deal.

By Teneshia LaFaye