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The conventional wisdom is that now is one of the strongest buyer’s markets for homes in a long time.

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Despite cautions that buying a home is a substantial investment and it is never a good time to bite off more than you can chew, it seems like a good time to buy a home.

Interest rates are low. Homes are lower priced.

But the right time to buy depends on what you can afford, of course.

Fortunately first time homebuyers have options. There are federal tax credits, state and local loan programs, and buyer education courses that can get them prepared to take the plunge into home ownership.

Tax credit

In November 2009, the deadline to take advantage of the federal government’s tax credit for first time home buyers was extended to April 30, 2010.

Realtor Karen Waite of Gateway-GMAC said that if a binding contract is entered into prior to the April deadline, then the buyer has until June 30 to close the deal and still get the tax credit.

She added that military personnel serving overseas have another year to participate in the program. “I’ve got one client who is currently overseas but will be retiring and coming home soon. He’s got until next year to still take advantage,” Waite said.

First time homebuyers can get 10 percent of the total purchase cost refunded, up to $8,000. Existing home owners can qualify as well, up to $6,500.

NIFA

The Nebraska Investment Finance Authority offers low interest loans for first time homebuyers. NIFA was formed in 1983 by the Nebraska legislature.

The program was designed as a successor to three existing programs. The organization’s website says it’s an “independent quasi-govermental instrumentality that encourages the investment of private capital in Nebraska.”

The program offers 30-year home mortgages to first time buyers with below market rates.

Jean Niedan of American Mortgage said that right now the interest rate on NIFA home loans is 4.54 percent. She added that NIFA rates are less prone to fluctuation than other loans.

Not everyone qualifies for NIFA. Niedan said that the loans are for first time homebuyers, or people who have not owned their primary residence in three years.

Additionally, family income plays a role. Niedan said a family of two or less cannot make more than $62,000 in a year to qualify. A family of three or more cannot make more than $71,3000.

Not every lender offers NIFA, Niedan said. “There is a lot of paperwork attached to it, and not every lender offers the program.” She suggested contacting the lender of your choice and inquiring about whether or not they offer NIFA.

Niedan said that many people in North Platte are taking advantage of the low interest loans.

“I know I’m going to sound like a realtor, but if you’re a first-time homebuyer, between NIFA and the tax credit, now is a very good time to buy.”

Homebuyer education

NIFA requires that participants take a homebuyer education class. The USDA and Lincoln County Community Development do as well, said Nancy Striebel of the latter organization.

Striebel said that classes offer consumers a thumbnail sketch of the home buying process.

“We’d like to get people so they know what they are doing,” Stiebel said.

“I know I sure didn’t back when I bought my first house,” she added, joking.

The curriculum of the classes comes from Neighbor Works America, she said.

“We tell people, for example, what’s going to happen at closing, or how much money is expected as a down payment.”

The classes are offered the second Saturday of every other month. The next one will be offered at North Platte Community College. March 13.

“We get started at 9 a.m., and then I just torture you for the rest of the day,” Striebel joked.

“We get a lot of lenders to come in update buyers on the mortgage situation,” she added. “The mortgage industry has been very interesting on the last two years. Due to all the foreclosures, those guys have become very strict about the amount that is required as a down payment.”

Striebel said it seems sometimes that the requirements change on a daily basis.

To get signed up for the homebuyer class contact Striebel at 534-5095.

Successful completion of the course lands you a certificate sent to your lender.