I would never recommend a buyer to pass on a home inspection. It is important to know the real condition of the property you are buying.
US Inspect came up with a list of the top 10 defects found in most homes, they were based on over a half million inspections.
Many of these defects could cost you thousands of dollars.

1. Roof leaks due to poor flashing and / or roof material failure due to poor installation

2. Water penetration in the basement or crawlspace due to poor surface water control

3. Electrical safety issues due to age of home or homeowner alterations

4. Deterioration of the interior wall material behind shower and tub surround areas

5. Safety concerns associated with improperly installed decks, stairs or railings

6. Heating unit and distribution system problems due to age and workmanship or alterations

7. Structural concerns due to improper construction and/or alterations, or excessive unbalanced load

8. Fire safety issues related to fireplace chimneys

9. Wood deterioration caused by termites or other wood destroying organisms due to local environment or conducive conditions

10. General fire and safety issues with home ownership

The FHA Energy Efficient Mortgage program (EEM) is a federal program that helps home buyers, providing them with mortgage insurance to finance the cost of adding energy efficiency features to new homes, saving money on utility bills.

Very plain and simple, an energy efficient home costs less to operate, the bank knows you could afford a larger mortgage if the cost of running your home is considerably lower. The borrower does not have to qualify for the additional money and does not make a down payment on it.

The EEM program not only applies to new homes, existing homes are also eligible for these mortgages. For an existing home, you will need a home energy rating system report (HERS), which will give the house an energy rating, then suggest improvements and costs. The report ranges from $100 to $300.

Remember that FHA insures loans, FHA does not provide loans.

Source:HUD

For Sellers:
Who will tend to the property and pay for routine maintenance?
Who pays for major repairs?
What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?
Will you manage the property yourself, or hire an agent?

What if the renters change their minds? Who keeps the money in the escrow account?
If the buyers change their minds, what will be required to put the property back on the market?

For Buyers:
How much of the rent is going to the down payment?
How locked in are you if you change your mind?
What will it cost you to get out of the deal?
How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?

Source: REALTOR® Magazine Online

Well, it will save you time by looking at the right houses and avoid disillusionment.

Getting pre-approved is a good way to determine the price range for which you are qualified. You will need to meet with a lender. Keep in mind that pre-approval is not a mortgage commitment or guarantee, however, it will provide you guidance on what you can afford to spend on your new home. Also carries substantial weight with a seller because it shows the seller your are serious about buying his/her house.

Get ready to provide the lender the following information:

Income and Employment
Your current income.
Employment status.
History of steady employment.

Down Payment
How much money you have available for a down payment. Usually, the higher the down payment, the lower the interest rate and monthly mortgage payment. Do not forget, you will also need cash for closing costs.

Credit History
Your lender will review your credit history by reviewing your credit report. He/she will consider how much you owe on credit cards, car payments, student loans and other debt. He/she will also review your ability to pay property taxes and other expenses of homeownership.

With your mortgage pre-approval in place, you are ready to begin your search.

Happy house hunting!

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence (new home or resale) on or after January 1, 2009 and before December 1, 2009. The tax credit is equal to 10% of the home’s purchase price, up to a maximum of $8,000.

It is unbelievable the number of people who don’t know about this wonderful opportunity.

In 2008, nearly one out of every two homebuyers were buying for the first time, the first-time homebuyer credit is making it easier for first-time home buyers to enter the housing market this year.

Yes, you need to be a first-time home buyer, but wait, what does it really mean? Well, by law, you qualify as a first-time homebuyer if you have not owned a principal residence during the three-year period prior to the purchase. The purchase date is the date when closing occurs and the title to the property transfers to the homeowner.

Remember that any home that you will used as a principal residence will qualify for the credit, for example, single-family detached homes, condominiums, town-homes, mobile homes even houseboats.

Also, consider that owning a vacation home or rental property not used, as a principal residence does not disqualify a buyer as a first-time homebuyer.

Income limits for claiming the tax credit.
For single taxpayers is $75,000; for married taxpayers, filing a joint return, the limit is $150,000.
Something else, if you are a buyer with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return, the tax credit amount is reduced. The range is equal to $20,000, meaning the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
Basically, if you are single, you get the full credit if you earn $75,000 or less, and no tax credit if you earn $95,000 or more. For those married and filing jointly, the amounts are $150,000 and $170,000, respectively.

For more information consult a tax specialist before proceeding on your eligibility and proper deductions on your returns.

Reference: www.ustreas.gov U.S. Department of the TREASURY