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SAVE UP for your First Home!

savings money If you're reading the headlines, and looking at the real estate section of the paper - you know that NOW IS A GREAT TIME TO BUY YOUR FIRST HOME!

The equity you grow, here in the Triangle, over the next 4 to 5 years should be significant... but the question is, can you still purchase a home with NO MONEY DOWN?

Well - yes, and no. If you or your spouse is a Veteran, yes. There are programs specifically designed for Veterans.

If you are considering a purchase in a more rural area, (like Fuquay, or Wendell or most of Johnston County) there are USDA 100% loans available. These loans are property specific, but the rates are good and the qualifying is save for downpayment generally reasonable (To see if you meet the income qualifications for this program click here. To see if the property you are interested in qualifies for this program, click here.)

If you have heard about FHA loans, you might also know that Congress recently passed some changes to this program. With the new housing bill, Congress changed the minimum downpayment for FHA financing to 3.5%.

The details of this are not yet available - but it does not appear that this mean you will need to save 3.5% for downpayment, AND the money for your closing costs and prepaid items! WHEW! On average - you might need an extra $500 to $750 dollars in order to qualify for this loan (and remember, FHA allows for gifts!) Also, if you are looking at FHA foreclosed property - the downpayment requirements are LESS!

Now is a GREAT time to purchase Real Estate! Congress is also giving First Time Homebuyers a $7500 Tax Credit if the property closes prior to July 1, 2009! So start taking your lunch to work - and SAVE UP! Now is the time to buy!

If you are considering a purchase in Cary, or buying a home in the Raleigh Area, please call Steve and Eleanor Thorne,919-649-5058

Posted by Eleanor Thorne 919-649-5057 Cary Mortgage Loans on 07/31/2008 11:35 AM

Comments (24)

usda loans, va mortgage loans, fha loans, mortgages cary nc, raleigh mortgage rates, no downpayment, first time home buyer

Originally posted at: Mortgage Lending, NC Style: SAVE UP for your First Home!

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24 Comments on SAVE UP for your First Home!

JUL

2008

Now is definitely a great time to buy! :) Good Post Mrs. Thorne!

AUG

2008

Great positive post. Thanks for sharing,

Jim

AUG

2008

real estate 101 - if you have the money saved , buying a home is a great idea, especially in todays market

this may not be the correct forum to ask . however ,

can you do loans for Phoenix condos?

I have contracts on 20 units $110K each

investor (not second home or primary)
full doc
20% down
Non-warrantable
condo conversion
full-doc
seller will contribute 3% towards costs

If you think you may be able to do something , please give me a call

AUG

2008

Will be interested in seeing further details on the closing costs and 3.5% down - please keep us informed! As usual, great overview of some of the options available. Thanks for the money saving tip - the savings sure add up quick when packing a sandwich instead of driving and buying one!

As a fellow mortage professional, I agree with everything you posted. People just need to prioritize.

Hi Eleanor,
Keep preaching this sermon, there are many who still do not believe!

We've heard all about it. The only bad news - they have to pay the credit back over 15 years! In this market we'll take the benefit!

I'm very thankful that you're ability to keep abreast of the market is right on target!

AUG

2008

Thank you soooo much for that very "up" discussion. We sure could use some positives!

AUG

2008

Eleanor - Wonderful information for buyers in many areas, including North Carolina. We use gourmet coffee as the image to help first time home buyers in our ABCs of Homebuying course see how a simple sacrifice can lead to their becoming a homeowner. Your photos have me headed for a turkey sandwich!

Thanks for keeping us up to date on Congress! I had heard that the FHA loans would be going up but had not heard the 3.5% yet. Please keep the details coming.

SEP

2008

I included this in some information I sent to a 1st time homebuyer today! Thanks Eleanore.

SEP

2008

Good information for buyers. This is a good time to buy in most areas.

Hey Eleanor,

Great post!

Maybe if we all collectively can show the public that it is a great time to buy AND that they can still get a loan, then maybe we can solve this "meltdown crisis sooner than expected.

Hey guys! I think you are correct! Now is a great time to buy - and folks are looking for ways to get into a home with minimum down! We've had tons of inquiries in the last week about USDA programs - and which homes qualify!!

OCT

2008

Yes, it is a great time to buy. Interest rates, price, and builder incentives. But, the change requiring downpayment is long over due. For those who "plan" to buy a home, I bet their foreclosure rates are a lot less. Good post because it shows that there are still loan programs out there for "qualified" buyers.

NOV

2008

I have seen many qualified buyers, I mean documented, good FICO score buyers coming into the market - Much didffernt than they buyers in years past

Great post, just sent this to some FTHB that are thinking of waiting :)

NOV

2008

Great post. It is a great time to buy, especially for the first time home buyer.

JAN

It is a great time! I think there are first time buyers out there that still think they cannot qualify. We have got to get these posts out there and hope they read them. They need to take advantage of this unusual market.

FEB

Do you know if they have changed the rule on the payback of the $7500 yet? I had heard it was going to be changed in the new stimulus package. ??

FEB

Thank you for the detail included in your post. It is very useful information for both agents and buyers!

MAR

Elanor, you might want to re-visit this post and include the new $8,000 tax credit for first time homebuyers that does not have to be paid back. Now it's even a greater time to buy a home.

MAY

this market has a lot going for the first time home buyers and now is a good time to buy!

JUN

No, they did not change the rule: the $7,500 in the '08 stimulus package does have to be repaid over a 15-year period, but that's still $500/year interest free.

Yes, update the article to include the 2009 $8,000 stimulus package. Also, in our state, bond money is available for first-time homebuyers for the 3.5% down required by FHA.

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