With the impending end of down payment assistance, there may never have been a more ripe opportunity to "MOVE UP" or switch homes.

Sell now...Buy later!

A majority of transactions that have occurred in the AFFORDABLE price range lately have been FHA transactions.

Sell now...BUY LATER!

Many of these transactions involve Down payment assistance.

SELL NOW!!! BUY LATER!!!

Although the demise of down payment assistance programs is slated for October 1st, I just received word that in Arizona, a pretty active real estate market, down payment assistance programs are seeing their last days well before the October 1st to contract, October 31st to close deadline.  One bank wants all funded loans to be purchased by September 30th!!!!  YOU BETTER CHECK WITH YOUR LOAN OFFICER IN YOUR AREA!

                           What does this mean?

What do you think it means when a large population group of buyers will no longer be able to buy?  What will happen to home values when there is an absence of legitimate buyers?

We saw what happened when the Alt-A or "A-minus" programs came to an end at the beginning of last summer.  We saw what happened when the "declining markets" increase to minimum down payments hit us last fall.  What does this mean today?  Where will money be made??

I figure that sellers in the "affordable price range" will be able to throw their home on the market, make no repairs, etc. and create a bidding war.  Then, after selling their home, they hold tight (maybe rent for 6 months) and wait until the market adjusts for the absence of buyers that are qualified and able to purchase.

Those that don't sell by the first week of September (at least in Arizona) may have a transaction in "limbo" and they better hope and pray that all goes well.

WILL ANY BANK ALLOW DOWN PAYMENT ASSISTANCE IN SEPTEMBER??

I've called three clients on the fence about selling and told them that they've got a few weeks at best whereby they can get their home under contract to close by September 15th.  After that, the loan may not be purchased by the wholesale lender that funded the FHA loan.  Their benefit?  They want to sell, they have equity and they want to buy afterwards.  Sell now, wait for the drop in values, then buy.

One client will be selling 1600 or so sqft. and buying 2800 sqft. about 4 miles away for the same or lower sales price!!!

I'm sounding the alarm.  Be careful with your buyers and sellers.  Make them aware of what is going on.  The sky is not falling, just loan programs.  Now is the time to hire a professional that understands what is going on in the market.

I've spread the word that those that have a down payment should anticipate a drop in values due to a lack of competing buyers.  Those that do not have a down payment should shop smart or back out and save!  Those that want to sell before buying.  Now may be their last chance.  After the end of this, they'll probably have to become landlords.

What, for certain, is going on in your area?  Do you have the same "GOLDEN" opportunity?