Money and Main Street
6 of 7
BACKNEXT
Alex Bauer
Alex Bauer
Alex Bauer, 26, with his fiance, Ashton. Bauer is an engineer for Northrop Grumman, and she works as an administrative assistant.
Location: Newport News, Va.
Property: 3 bed, 2.5 bath townhouse
Price: $257,000

If it was not for this tax credit, we would still be living in our two-bedroom apartment. Instead, my fiance and I closed on our first home in the last week of August.

When buying, the biggest problem I had was how to come up with a down payment. The house was $257,000, and I needed to put down 3.5% to meet the FHA rules. I didn't have all of the $9,000 required, but then I found out about the FHA's new program where you can use the tax credit for the down payment. Using the plan, which the FHA announced in May, I was able to buy the house without draining all our savings.

I got a great deal on the mortgage. The interest rate is just 3.5% for the first year and costs about $1,500 a month, with taxes and insurance. The rate goes to 4.5% the second year and caps after that at 5.5%, about $1,900 monthly, which we should be able to swing as our earnings go up.

NEXT: Ryan McKeown

Last updated November 09 2009: 11:06 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
Graffiti about crisis fills Athens' streets Artists are taking to the streets to express their views on the Greek crisis. More
My whirlwind 24 hours in Taiwan as a bridal supermodel Unlike the West, Taiwanese brides-to-be sit for hun sha ?? photo sessions before their actual wedding day. The photos are seen as a status symbol as well as a way to capture the brides' youth and glamor. More
8 startups that'll make your travel experience so much better Here are the new travel apps and services that will make trips easier, less time-consuming, and more fun for the every day business traveler. More

Special Offer