This week there was a proposal by HUD to make the $8,000 First Time Buyer Tax Credit available for First Time Home Buyers to use as their downpayment.  At this time the Federal government has not made any official announcement regarding when or if this will actually happen, however, NJ First Time  Home Buyers have other options.   

New Jersey's First Time Home Buyer Program gives buyers the opportunity to take advantage of downpayment assistance.

• Smart Start-The state's down payment assistance program will provide up to 4% down payment assistance to eligible buyers.
• $5,000 Prefund Program-buyers eligible for the Tax Credit can receive a loan up to $5,000 in order to use the Tax Credit as a portion of their down payment.

Buyers utilizing FHA Financing can also use a gift from a family member as part or all of their 3.5% down payment.  When any of these options are combined with a sellers concession(where the seller covers the buyers closing costs) it can easily make the dream of buying a home a reality.

If you are considering buying a home at this point your primary goal should be to get pre-qualified for your mortgage and start shopping .  This will give you time to address any credit problems and comfortably shop for that perfect house.  In order to qualify for the tax credit you will need to close on your new home by November 30th 2009.