Buying a House

Probably the largest reason that people buy homes is an emotional desire to own a house.Home ownership is still very much intertwined with American identity.Still there are huge financial incentives to encourage home ownership and not all of them are related to the appreciation in the value of the home.

The largest federal incentive to encourage Americans to buy homes instead of renting is the mortgage deduction.Homeowners get to deduct any interest that they pay on their home from their federal income taxes every year.For the average $125,000 home in College Hill, the owner will pay $1,300 less in federal income tax in the first year that they own the home and $23,750 less over the life of a 30 year mortgage at today’s interest rates.Even if a home does not appreciate significantly in value, this tax deduction can make homeownership much less expensive than renting.

The best place to start to understand your preparedness for home ownership is with Home First, a local non-profit home buyer education and mentorship service. HomeFirst can help you understand how home purchase works, educate you about all the available incentives and even help you plan a road map towards home ownership if you need help establishing or repairing your credit.This service is free and more information is available at http://www.homefirstga.org/.

Housing in the College Hill District

The first and most important reason to move to College Hill is also emotional.  It is a hip place to live, attracting people from all walks and stages of life to enjoy active, walkable, bikeable neighborhoods with beautiful historic homes and locally owned neighborhood businesses.

Financial Incentives

Even if this “cool-factor” isn’t enough to entice you, there are other huge incentives, beginning with down payment assistance.  Many renters hesitate to buy housing because of the costs of purchasing including closing costs (usually $3,000-$5,000 paid to your mortgage broker and closing attorney) and 3.5% of the price of the home as a down payment ($4,375 for a $125,000 home).  Most or all of these costs can be covered by various incentive programs for College Hill.

Mercer University Down Payment Assistance

Mercer University offers up to $20,000 for any of its full-time employees to purchase a house in College Hill.  This program is very simple to use and has few restrictions.  More information is available at http://www2.mercer.edu/dpa.

City of Macon Down Payment Assistance

Non-Mercer employees may also receive assistance from other sources to cover down payments and closing costs.  The City of Macon offers a down payment assistance program through the Economic and Community Development Department.  Eligible recipients must earn less than 80% of area median income as determined by U.S. Housing and Urban Development (currently around $28,000 for an individual).    This program provides up to $25,000 in down payment assistance to home purchasers in College Hill and is also very easy to use.  Contact Tamikia Johnson at 478-803-2418 or click here for more information.

Georgia DREAM

Almost all first-time home buyers will also qualify for assistance from the Georgia Department of Community Affairs’ Georgia Dream program.  These programs can be used in addition to the programs above or independently.  Homebuyers of one or two person households earning less than $61,000 and with average to good credit can receive a $5,000 down payment quite easily.  Professionals in the education, healthcare or public protection (police, fire fighting, etc.) can receive $7,500 fairly easily.  Recipients of these incentives usually do not have to contribute more than $500 to $1,000 in total to cover closing costs and down payment.  Other more specialized needs such as disabled buyers and lower income earners may be eligible for other programs through the Department of Community Affairs.  More information is available at http://www.dca.ga.gov/housing/Homeownership/programs/RUHomeBuyer.asp.

Special Incentives for Historic Homes

Historic homes purchased from Historic Macon Foundation’s neighborhood revitalization programs come with even more incentives.  On top of all of these other incentives, historic homes come with two other major savings.  The first is a property tax freeze.  Property taxes in Macon are currently around $2,000 per year for a $125,000 home.  Historic homes from Historic Macon Foundation usually have property taxes frozen at a yearly rate between $200 and $1,000 for 8.5 years, saving hundreds of dollars every month.  The second incentive is a state income tax credit equal to 30% of the amount of money that Historic Macon Foundation expended on the rehabilitation of the home.  These state tax credits are so large that most  buyers do not pay state income tax for 10 years, meaning that the household sees a 6% increase in income for everyone in the household, usually with a value of hundreds of dollars every month.  Click here to read more about these historic preservation incentives and remember to speak with your financial professional to find out how these incentives can benefit you.  Everyone's tax situation is unique and professional tax advice can help you understand how you can benefit.