I understand the concept, but historically speaking, higher interest rates have meant homes are less affordable. Even with 17% interest rates in the 80's, the same home today at a 5% rate with a MUCH higher price is still a more affordable payment.
This means that rates will be over 5% , and you won't be able to afford the same amount as mortgage as you could now unless your salary increases.
So when you say it needs to be recaptured how exactly would I do that? The $2000 tax credit is called Maryland HomeCredit, I am not sure if that is a MCC?
If you're on a 5 year plan to buy, first, get debt free. It sucks having a mortgage while still having other outstanding debt. Second, get an emergency fund. As with debt, it will suck the life out of you when an emergency happens and you have to rack up debt to fix it. Plan ahead, because 80% of people will have a major financial setback within any 10 year period. Third, rent as cheap of an apartment/home as you can comfortably live in with the goal of buying a home. Lastly, set aside as much as possible for your down payment in a good mutual fund (or 3) with good long term track records. Historically the stock market has averaged a 10% return annually throughout its history so you should out pace housing in that case since the housing market as a whole returns something like 5-7% annually.
MCC refers to the mortgage credit certificate started by Obama in 2008 to give real estate a boost, which is the 2000$ tax credit which is available in many different forms. It is actually 20% of mortgage interest and maxes out at 2000$. Thus, you would need 10,000$ annually in mortgage interest to "max it out", otherwise it will max out at 20% (Ex. you pay 5000$ annually in mortgage interest, you will get a 1000$ mortgage tax credit at the end of the year) The Maryland Homecredit is a type of MCC. MCC takes 2000$ from your mortgage interest which is tax deductible, and makes it into a credit, credits are exchanged 1:1 for dollars when you do taxes. Basically, if you end up owing 0$ come tax time, they'll give you a 2000$ rebate come tax time, every year, for the life of the loan.
Stay persistent. My Mom's got a modification through HAMP. It took a TON of back and forth between her lender and the program for several months of "mail this in" and "oh we need this form and this form too" and "please submit these additional documents", to the point that it seemed like they were dragging their feet on purpose, but the modification is well worth it. Find a local nonpfrofit that assists in these modifications if you can, it can really drive you nuts.
Nice thats wussup what builder are you going with?Shopped around and got my builders lender to keep the original quote from March
And dem closing cost outta there
Thanks everything is coming together better than expected.
Average rental in the area is 1400$, Mortgage will be like 2,200$(haven't got these numbers yet). I go back and forth whether I want to be a landlord (save more money) or get a property manager and lose like 10% from monthly rent. Considering renting the other bedroom out and going all in.
They say "house hacking" (living in a multi family and renting out the other units) is a very easy land lording situation. As long as you make ground rules its really easy. I wouldn't give away 10% of my profits manage a neighbor. Collect rent (can be done electronically), handle maintenance issues, and find tenants pretty much all they do.
thanks for the info. 
You sold me on doing it myself. Going to research on it and do the landlording
That'sounds good until you get all 3 within 45 days of each other
I'm right there with you man, minus the kid (for now at least). It's been stressful enough I couldn't imagine a kid in the mix too.
