It is a great time to buy; interest rates are low and there is plenty of inventory to choose from. Recent events as a result are changing the situation however. First the good news.

Interest rates have come down again and are now below 6%! Wow! This will make larger, more expensive homes affordable for Vermont home buyers without increasing their monthly mortgage payment. Now the bad news.

Major underwriters for private mortgage insurance are tightening their requirements as a result of the sub-prime melt down. Consequently, buyers with a credit scores below 620 will not be able to purchase home after January 30th when the new requirements take effect.

It gets bad for investors also. Multi-unit properties with more than 2 units will now need at least 25% down to purchase if it won't be owner occupied. Many small investors will be hurt, both those who have over extended themselves and need to sell--their pool of buyers is going to dry up, and buyers who will not be able to afford investment properties.

Iin short, if your credit score is below 620 or you're an investor looking to purchase a multi-unit property in Chittenden County you have until the end of January to purchase before the private mortgage insurance restrictions take effect.