"We heard this is supposed to be a great year to buy a home, but we didn't know where to begin," said Hunsaker.

The federal government is encouraging first time home buyers like Hunsaker and Reynolds to take the plunge into home ownership. Congress enacted an economic incentive for first time home buyers in the form of an $8,000 tax credit that can be cashed this year-even if 2008 tax returns are filed.

Hunsaker consulted with Realtor Tammy Marasia, a Keller Williams agent in Westminster. After meeting with the two women and conducting an initial needs assessment, she recommended that they speak with a mortgage broker first.

"The rules and regulations have changed for home loans," said Marasia. "I always counsel my clients to seek out an honest and reliable lender before anything else."

The most popular loan program for first time home buyers is a government backed loan through FHA (Federal Housing Administration). Buyers can usually obtain an FHA loan with a minimum 625 credit score and a 3.5% down payment.

Hunsaker was referred to Mitch Friedman with Premier Mortgage Group.

"When I met with Natasha and Marcia, they were worried about their credit and down payment and whether they could qualify", explained Friedman.

In Hunsaker and Reynold's case, their combined credit score fell below the minimum requirement for an FHA loan. They feared they wouldn't be able to qualify for a home loan. With some persistent phone calls, the two women were able to effectively raise their score enough to make the difference.

The next issue was the down payment and closing costs. Hunsaker and Reynolds estimated they would need $10,000 and were not sure how they were going to obtain it.

The federal tax credit, with a maximum of $8,000, can be obtained with a simple tax amendment if you don't want to wait until next year to receive the money. The Colorado Housing & Finance Authority (CHFA) program, Jump Start, allows buyers to utilize up to $6,000 of the tax credit and apply it toward a down payment. The program is a short term second mortgage, which can be repaid once the home buyer receives their tax credit from the federal government.

The women decided to save enough money for the down payment themselves. They came across a newly remodeled home in Thornton. The asking price was higher than their approval limit, but Marasia was able to negotiate a deal in which the price was lowered and the seller paid their closing costs. On March 26, the women bought their first home.

Friedman and Marasia sponsor a monthly series of First Time Home Buyer classes. The free, no obligation classes are designed to help educate people about the process of purchasing a home for the first time.

"With so many incentives, options, and advantages in 2009, we want to give people the resources and knowledge to make good home purchasing decisions," finished Friedman.

The next class will be held at the Arvada Public Library ( 7525 W. 57 th Ave., Arvada) on Wednesday, July 22 from 7:00 to 8:30 p.m. For more information about the free First Time Home Buyer classes, visit www.cfthb.com or call Jim Lyons at 720-581-0342.