Is Now a Good Time to Buy?
In our current economic situation many people are pinching their pennies and holding on to their wallets, but there is a segment of the population that can and has been benefitting from our current economic downturn. First time home buyers have found this could be their perfect storm. With so many programs from the federal government out to help stimulate the economy, prices coming down and low interest rates, first time home buyers have found that they are in the perfect position to buy!
With the current state of our economy our Federal Government has been enacting programs to help get it flowing again. Things like FHA or Federal Housing Administration loans-that is loans insured by FHA-have become recently more popular, especially with the first time buyer crowd. Current requirements only require 3.5% down payment which is much lower than the conventional 20%! Their requirements for credit are more lenient and they allow home buyers to use financial gifts from family.
The Federal Government has also helped by adding incentives to attract first time homebuyers. As part of the economic stimulus package a tax credit worth up to $8,000 is available for first time home buyers, as long as they buy this year. This tax credit does not require re-payment!
Our current economic conditions have also created a downturn in property prices. While unfortunate for some, it has turned out to be a blessing for others. Prices around the country have plunged nearly 30% or more in some areas. This unfortunate event has had an unexpected benefit, combined with things like the tax credit and FHA mortgages, first time homes buyers can now purchase their first homes. It is creating a new generation of home owners.
Aside from the new Federal Laws, the FHA loans and the lower property prices, interest rates have fallen, even when we thought they couldn’t fall any more. The most recent rates have been in some cases below 5%. Which is not only a boon for first time home buyers but also for those who are looking to lower their monthly payments.
While this might be the perfect time for first time home buyers, it can only benefit them if they actually act on them. If you know of anyone who is a fist time home buyer, encourage them to talk to their realtor about the possibilities of buying their first property. They will be happy you did!
With the current state of our economy our Federal Government has been enacting programs to help get it flowing again. Things like FHA or Federal Housing Administration loans-that is loans insured by FHA-have become recently more popular, especially with the first time buyer crowd. Current requirements only require 3.5% down payment which is much lower than the conventional 20%! Their requirements for credit are more lenient and they allow home buyers to use financial gifts from family.
The Federal Government has also helped by adding incentives to attract first time homebuyers. As part of the economic stimulus package a tax credit worth up to $8,000 is available for first time home buyers, as long as they buy this year. This tax credit does not require re-payment!
Our current economic conditions have also created a downturn in property prices. While unfortunate for some, it has turned out to be a blessing for others. Prices around the country have plunged nearly 30% or more in some areas. This unfortunate event has had an unexpected benefit, combined with things like the tax credit and FHA mortgages, first time homes buyers can now purchase their first homes. It is creating a new generation of home owners.
Aside from the new Federal Laws, the FHA loans and the lower property prices, interest rates have fallen, even when we thought they couldn’t fall any more. The most recent rates have been in some cases below 5%. Which is not only a boon for first time home buyers but also for those who are looking to lower their monthly payments.
While this might be the perfect time for first time home buyers, it can only benefit them if they actually act on them. If you know of anyone who is a fist time home buyer, encourage them to talk to their realtor about the possibilities of buying their first property. They will be happy you did!
