Dreaming of owning your first home?  Tired of shovelling out rent for a home or apartment that doesn't feel like yours?  Take heart, changing from renter to homeowner may be easier than you think.  We're here to help.

Where do you start?

First of all, learn the financing basics.  Get pre-approved and become a smart shopper.

When you buy your first home, making monthly payments  probably won't be a problem.  After all, you're already paying rent to your landlord each month. It's coming up with the lump sum needed for a down-payment that may seem impossible. Fortunately, there are options to make buying your first home a happy reality.

Programs for first-time buyers.  

The $8,000 first-time homebuyer tax credit is extended

• Now, qualified first-time home buyers would receive their $8,000 tax credit if they sign a purchase contract by April 30, 2010 and close by June 30, 2010
• The home purchased must be their primary residence
• Buyer cannot have owned a home during the past three years
• Tax credit is up to 10 percent of the home’s value (not to exceed $8,000)
• Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers). Partial tax credit can be granted for incomes up to $145,000 for single filers / $245,000 for joint filers

New $6,500 tax credit for current homeowners purchasing a primary residence

• Eligible home buyers must have lived in their current home for five consecutive years of the past eight years
• The new home’s cost need not exceed the current home
• Eligible for homes with purchase agreements written by April 30, 2010 and that close between Nov. 6, 2009 and June 30, 2010
• Annual income caps to qualify for the tax credit will increase ($125,000 for single filers / $225,000 for joint filers). Partial tax credit can be granted for incomes up to $145,000 for single filers / $245,000 for joint filers

To learn more about obtaining the tax credit, visit the Frequently Asked Questions and Tax Credit Changes Comparison Chart.

To obtain forms to claim your tax credit, see this information from the IRS.

For further information about eligibility requirements and limitations, visit www.irs.gov or www.FederalHousingTaxCredit.com.

Your lender.   Your bank or credit union may help as well.  Are you debt free and own something free and clear, like a car?  Your lender may lend you the down-payment by securing it against this asset.

Private contracts.   Look for a seller to help you buy and finance your home. Some sellers are willing to carry the contract themselves and will waive the down payment.  You may only have to pay the monthly mortgage installments.

Need financial solutions?

Credit or tax problems.   Do you have problems with your credit rating or owe money in taxes? Buying your first home is still a possibility. Check with your lending institution about options, such as paying a higher down- payment.

If necessary, contact a financial advisor or tax resolution service.