"Perfect Storm" for Buyers

The new Housing bill signed into law this week has created a short window of time for buyers to take advantage of a couple of important programs. The Housing bill will take away one of the most important tools buyers have had to get into a home-the down payment assistance programs. Non-profits like Nehemiah, Neighborhood Gold etc have enabled many people who would not have been able to purchase a home to buy a home (and no, most of them DID NOT DEFAULT!). The housing bill removes the down-payment assistance programs for FHA loans as of Oct. 1st, 2008. We don't know yet if that means you have to close by Oct. 1st or be pre-approve, under contract etc. They are also planning to raise the minimum down payment from 3% to 3.5%.
A big positive that came out of the bill is a $7500 tax credit for 1st time buyers or people who have not purchased a home in the last 3 years. This is good on homes closed between April 9, 2008-July 1st, 2009. This could mean if you are due a tax refund of $1000 at the end of the year, with this credit you would get $8500!
So between now and Oct. 1st, buyers can still take advantage of the down payment assistance and get the $7500 tax credit. Add to this the low interest rates, and the high inventory of homes for sale, you get a perfect storm situation for Buyers! If you have been considering purchasing a home, do not delay. You need to call your Realtor today to see about getting pre-approved and to start the home search process. Oct. 1st will be here before we know it. If you are not working with a Realtor, call us at 866-Home Run (866-466-3786) and we would be happy to help.