... much of it began when the housing market crumbled.  This first-time home buyer phenomenon became an epidemic once again, yet this time it was/is different.

Sure, there are different motivations in getting the blood flowing, but borrowing guidelines today are much more stringent than recent years.  Knee jerk - yes.  Opposite extreme - of course.  Will it get back to some semblance of a common sense reality?  The cycle typically does the math for us.  I believe we are not so calmly near year three since all of the ruckus started in the first place.  Are we out of the woods just yet? Probably not.  But it has created quite the opportunity for budding homeowners.

There is demand.  There are more incentives for first-time home buyers right now than maybe ever before.  Here's the scoop:

• There is an $8,000 Tax Credit available for first-time homebuyers.  And to distinguish misinformation with this particular clause, you are considered a virgin within the system if you haven't owned a home within the past three years.  So, you don't really have to be first time.  There just has to be some time in between ownership of a property.
• 100% Financing is alive and well and living in certain parts of Rural Wherever.  The USDA Loan is back and not as rural as you may think.  You don't need chickens, pigs, cows, or the soul of Johnny Cash to qualify.  It's out there and funds in the sum of $10 Billion dollars have been allocated to it.  If I can get my paws on some of that, I'll walk the line;)
• Larger Inventory has helped to create lower housing prices.  Do the math.  Supply and Demand.  Economics 101.  Or, if you want to keep it simple, I have a bunch of stuff that needs to sell, but can't be sold at the price I want sell it, at least right now.  Give me an offer, and if I can put it in the books... it's done. 
• While interest rates still closely resemble the guy's score to the hundredth degree who got his name wrong on the SAT Exam, they are still lower than Gary Coleman doing a KFC Commercial on his knees. They (interest rates) are bound to go up, folks.  I've been saying that for way too long now.  Lucky for me and those who have already taken advantage of them, I've been dead wrong.
• FHA Loans have picked up the slack and some of the common sense from Conventional Lending which has been ravaged with ridiculous rate hits and mortgage insurance payments from those lovely folks over at the Mortgage Insurance Companies.

All is not rosy in the land of first-time homebuyers, however.

• Job stability seems to be an oxymoron in this atmosphere.  Folks may be afraid to take the plunge into such responsibility as owning a home for fear that they are next in line to receive the proverbial pink slip.
• In certain areas around the country, home values are still declining.  This may or may not be construed as a bad thing if that is the case in your particular area.
• In an age where money is tight for a lot of folks, a down payment may not be possible.  If you don't qualify for a VA Loan or USDA loan, this could be a pretty big stumbling block.
• Underwriting Guidelines are tighter than Joan Rivers face. 
• The required credit score for the majority of lenders has increased. The magic number is 620, though don't be shocked if that goes up eventually.

The overview of "Good News/Bad News" for first-time homebuyers right now is tilted slightly in the favor of more good than bad, in my opinion.  If you are even remotely considering taking the leap, talk to a trusted Mortgage Professional so you have a clear idea of all the options.  They can guide you, yet it will be you who takes that ride that is owning a home.  Make it a safe one.

About The Author: He is wide awake on hump day and feeling pretty good.  Jason Sardi typically doesn't like talking in the third person, but such is life.  He can be reached via email at jsardi@ihmci.com or on his cell phone at 610-653-0317.