WHY Buy Now? Why NOT Buy Now!

The news tells us that all is doom and gloom. Read the paper, watch the TV news, listen to the radio! Every where you turn the news is gloomy. You are told the financial institutions have no money to lend. You hear foreclosures are up. The picture is bleak.

Now is the time to buy! The interest rates are lower than they have been in 3 years. The price of new and existing homes is lower than it has been in 18 years. And there is money available. If you are a first time homebuyer you may even get a tax credit if you purchase a home before July 1, 2009. This tax credit is a refundable credit on your 2008 or 2009 tax return.

Then there are the types of mortgages available now. If you live in rural area, you may qualify for a USDA mortgage. This loan is 100% loan to value at competitive rates. Buyers must not have owned a home in the last 3 years, and it must be their principal residence.  This program does not limit the price of the home, but does have a maximum on the income of the household. The income limits will adjust upward in January, providing more opportunities for buyers.  The only drawback for this loan is that most Lenders have not familiarized themselves with this program. Check with Lenders in your area to see if they are approved for this program.

FHA is still a good loan program. There will be several changes to the program in January, but it remains a viable program for most first time homebuyers. The major change in the program in 2009 will be the down payment requirements changing from 3% to 3 ½%. This program is much more flexible than conventional programs with credit scores, and with help with the down payment from a family member. FHA does not penalize a buyer with higher rates when the score is under 700.

Of course, home ownership is not for everyone. But, if you believe home ownership is for you, and you have the desire to work toward that goal, there are programs available for you. The home prices are low, the rates are low, and the time is now.