The US economy has been suffering for some time and when the recession of 2008 crept in it was obvious to many that something had to be done to stem the tide of worry and disillusionment among our citizens. In 2009 President Obama signed into being an economic stimulus program that was aimed especially at first time home buyers - people who had either never owned a home or who had not owned a home within the last three years.
This remedy became necessary when people began suffering after the downturn in the economy, resulting loss of jobs, and increasing home payments as adjustable-rate mortgage interest adjusted upward, causing many people to fail in making their monthly house payments. Those who defaulted had only a short time to recover and when they couldn't do so, they lost their homes to foreclosure. Sometimes without recourse, people abandoned their homes and their dreams and were forced to make other living arrangements.
Americans expect support from their government in times of trouble and that support has come in the form of the First Time Home Buyer Stimulus Program. With incentives such as down payment assistance, lower interest rates, and income tax credits, home ownership is once again something about which people can dream.
When people look for their first homes, there are many emotions that go into that decision. Some would-be home buyers are reluctant to make such a huge financial commitment but their desire for a home usually wins out over their doubts. And because it is such a huge obligation, careful planning is essential. Taking advantage of the government stimulus program is going to help make more dreams come true in a relatively painless way. The loans that can be obtained will come with reasonable interest rates, lower monthly payments, and smaller down payments.
Tax credits are also a part of these programs and will save you money at tax time possibly allowing you to spend extra on something else you might want. Maybe you've postponed a trip or perhaps it's been a long time since you bought something that you previously thought was frivolous. Whatever you plan to do with your money you will be helping to stimulate our ailing economy. Whenever you spend money, the ripple effect goes into motion and your dollar spent is another person's dollar earned. When people use their money in this way, other people keep their jobs and the ripple moves on to the next person.
Consumers who consistently live frugally, may find it difficult to get past that mindset when there is an improvement in the financial landscape. The First Time Home Buyer Stimulus Program will help to ease the concerns of people who have for sometime found themselves in that category of frugal spenders. It has the potential of creating more home owners and more jobs and giving hope to a new generation of people. This can be the basis for our recovery as we try to find new and better ways of living so that we can continue to indulge in the American dream of home ownership.