Communication dilemma...

I've been busy the past couple of weeks sending out emails and calling everyone who has contacted us the past year or so about buying a home to make them aware of the recent changes in the housing market. Many of our clients in the past 10 years have used the Nehemiah program and otters like it to help them into a home. These down payment assistance programs have been cancelled by the new housing bill effective October 1st. At this point, we don't know if this means the transaction has to close by Oct. 1st or if it is in process by that date that will suffice. So if someone has decent credit (doesn't have to be perfect!) but no downpayment money saved, this may be their only opportunity for quite a while to buy a home. Add to this that it is still a buyer's market,with plenty of homes to choose from and low interest rates-there may not be a better time for many people to get into a home of their own.
Anyway, I hope my emails are not annoying people, I have no desire to SPAM anyone. I know many times when I receive an email I may not read it or I may delete it and then realize I need the info it contains. There is such a short window of time for people to act on this, I think it is important enough to be a little bit of a pest.

"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.