Money and Main Street
6 of 7
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
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