From Newsday – Babylon Will Help Middle Income Families Buy Homes
Trying to jolt a lethargic housing market, the Town of Babylon announced yesterday it will give middle-income families a $15,000 down payment match toward the purchase of their first home.
Those who earn 81 to 120 percent of the area’s median income will qualify for the program. For example, a single buyer can make up to $81,550 and a family of four up to $116,500, Supervisor Steve Bellone said. The home must be purchased within the town, and while the program is open to all of Long Island, priority will be given to those who are already town residents.
Props to commenter FanofBabylonVillage for pointing this out, although I did actually see it first yesterday on My Babylon Village.
Of course, as my wife points out, we don’t qualify as “middle income” in Babylon Town. We’re probably well below the median in the Village proper, but townwide we just make too damn much money.
Been watching the blog for a long time – great addition to the Village web site!
Here’s something else to consider for those wondering if this is the right time to invest in housing (media horror stories re employment outlook, stock market volatility, banking crisis, etc)
If you are a qualified first time buyer and looking in Babylon (village or not), the contributing factors that reinforce a positive decision are as follows:
1. $15k in down payment matching in the form of a non interest bearing loan, repayable only when there is a cash event (refinancing or sale)
2. A federal tax CREDIT (money in your pocket)of $8,000 off your 2009 income tax liability if you buy this year
This gives you $23,000 additional cash/financing resource that is about as free as it gets. Even if your income knocks you out of the Babylon incentive, $8,000 is a fairly nice bonus!
3. 30 year fixed interest rates under 5.0%. This may last for awhile under current economic conditions but not forever…figure 18 to 24 months. A single point increase will totally skew your carrying costs for a property immensely.
4. $2,500 in federal tax incentives for any energy related improvements you do to your new abode. Pretty loose definition on what that can be…even the right kind of paint can qualify.
5. home prices that are generally about 15% lower than they were last year and probably about 20% less for the collective last 24 months. Pretty near rock bottom – and keep in mind Babylon has not suffered that hit.
6. a CRAZY property tax structure that does result in very inconsistent property taxes on seemingly equal houses; in some cases you can find properties (in the starter price zone) for $4-$k (must search hard) but nearly everyone now has the opportunity to grieve the existing taxes on any house with a better than even chance of being successful. Most assessments can be challenged on very solid grounds these days.
Bottom line, this is an excellent time to make your investment particularly in the Babylon area. We have been hit the least by decreasing property values which is a testament to why our future values will continue to appreciate as the economy turns.
Biggest problem is finding a quality home and this is where home sellers need to take a harder look. “Renovated in 1980” is not a renovated home; old is old; deferred maintenance has to be adjusted off a market price, and crap at any price is crap 🙂