The U.S. Department of Housing and Urban Development offers a variety of programs through the Federal Housing Administration that require approximately 4 to 5 percent cash down. Among the problems are missing a credit card payment, defaulting on a prior loan, filing for bankruptcy in the past seven years or not paying your taxes. Other black marks on a credit report include a judgment filed against you or any collection activity. If you feel that your credit report is wrong, experts say it's best to take it up with the organization or company claiming you owe them money. But if you've been late paying your bills, regroup by paying in full and on time for six months to a year to prove to the lender that the late payments were an aberration.
Points paid by the buyer are deductible for that year.
In addition, expenditures for permanent improvements can be added into your home's cost basis, or amount of money invested in a home, which reduces capital gains when it comes time to sell. Home-owners should save all receipts so they can include money spent over the years for permanent improvements, repairs after afire, flood or storm and special property tax assessments for neighborhood improvements. Capital gains are determined by the difference in price from the time a home is purchased and the time it is sold, minus the cost of any permanent improvements. The IRS requires that the new employment be located at least 50 miles away, among other considerations. For more detailed answers to home-buying questions such as . . .