Thanks in part to the $8,000 first-time homebuyer tax credit, and in part to super-low mortgage rates, first-timers bought more than half the homes purchased so far in 2009. (Source: Home & Family Finance Resource Center.)

And don’t forget, the IRS defines first-time buyers as “taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase.” So, if you were a homeowner in a past life, you may still qualify for the credit.

Also, I don’t suggest making an offer on short sales at this time. If you’re not already in a contract for a short sale, I suggest not looking at them now. They can take up to 3 months just to get the approval from the bank, which puts you at mid-November, and then you’re in the middle of trying to close with millions of others by the end of the month with Thanksgiving interrupting everything.

Remember, the tax credit isn’t for those who tried to close by November 30; you have to be closed on or before November 30. There’s talk in Congress about extending the date, but don’t count on it. Check with your accountant or tax adviser to make sure you qualify for the credit, then call your realtor and start looking. There’s no time to loose!

Chris Campbell is a Realtor and Phoenix native serving the entire Phoenix metropolitan area. He also specializes in urban real estate and makes his home in downtown Phoenix. To contact Chris, please visit his website at www.PhoenixAZUrban.com.

In a nutshell, the buyer has to qualify, the property to be purchased has to qualify, and the purchase contract must contain certain items. Below are the bullet points for all three.

For a family to be an eligible buyer they must: (A family for this example can be one or more people, related or not related by blood or marriage. A family will include all persons in a household over the age of 18 even if their name is not on the mortgage or title to the home.)

1. Not earn more than $120% of area median income (AMI).  Please see AMI information below.
2. Families must be FHA creditworthy. These are the standards that will be used to financially qualify buyers. (a) House payment can be no more than 31% of family income, and (b) Family can have no more than 43% debt to income ratio.
3. Families must complete an eight hour NSP-required Homeownership Education & Credit Assessment counseling.
4. Families must maintain the property as their principal residence.
5. Families cannot own any other real estate.
6. Families cannot have their mortgage co-signed; they must qualify on their own.
7. Families must qualify for a 30-year fixed mortgage.
8. Families must invest $1,000 of their own money.
9. There is no limit on the amount of savings families can have.
10. Families DO NOT have to be first time homebuyers.

For a property to be eligible it must:

1. Be located in the City of Phoenix.
2. Have been foreclosed on and the title must not be in the former owner’ name.
3. Be appraised for the purchase price.
4. Seller must agree to a sales price of 15% less than appraised value.

Purchase contracts must have in it:

1. Sales price that is 15% below appraised value.
2. Property must be clear of the City’s top eight neighborhood code violations. See Phoenix Neighborhood Code Violations.
3. Pass inspection according to HUD Housing Quality Standards (HQS).
4. Signed Lead Based Paint disclosure from seller if property was built before 1978.
5. Home warranty for 3 years not to exceed $1,500.

While the NSP program applies to properties in the City of Phoenix, other Arizona cities and counties may have similar programs since federal dollars were distributed to local governments throughout the state. Check with the housing resources in your area to see what programs may be available.

AMI is the total gross income (including Social Security, child support, workman’s comp, etc.) of all residents of a single household over the age of 18 even if one or more of those people are not on the loan or the title of the home. 1 person household – $53,950; 2 person household – $61,650.  This chart goes to 8 persons; please contact me for that information.

Chris Campbell is a Realtor and Phoenix native serving the entire Phoenix metropolitan area. He also specializes in urban real estate and makes his home in downtown Phoenix. To contact Chris, please visit his website at www.PhoenixAZUrban.com.