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
10 things I learned at the New York auto show Auto shows these days are about as relevant as a dashboard cigarette lighter. But a careful observer can still pick up a thing or two. More
Rebirth of America's dead factories Defunct factories around the country are in high demand as U.S. production once again revs up. More
50 years of the Ford Mustang Take a drive down memory lane with our favorite photos of the car through the years. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.