"Buy Now", making more sense than ever with $7,500 tax credit.
Declining home prices and low interest rates have created a favorable buyers market! Recent headlines have been touting that many real estate markets have turned to the point that homeowners would be paying less per moneth for their home owning it rather than renting it.
On top of this, the Housing and Ecomonic Reform Act of 2008 does actuaally have some provisions that coud make a difference in our housing markets.
FREE MONEY FROM THE GOVERNMENT?
One really interesting piece that was included in this legislation is that for first-time homebuyers, they have a window to qualify for up to a $7,500 tax credit. The tax credit will be 10% of the purchase price of a home, up to a maximum of the full $7,500 credit. The tax credit will have to be paid back over a period of 15 years...but Washington just provided first time homebuyers a 15-year interest free loan to help them buy a home!
Another factor to consider is that mortgage guidelines will probably tighten more over the next year and mortgage prices will likely rise due to increased delivery fees.
GET OFF THE FENCE BUYERS!
Any potential buyers out there need to get off the fence and act now while all these positive factors are in place at the same time because it won't last forever.
For parents or grandparents that would consider helping their kids buy a new home this is also a perfect time to jump on board and help out. It should also be noted that most of the news stories have gone way overboard on new lending guidelines by portraying a market where there is almost no way to get a mortgage. THIS IS NOT TRUE! We can still do loans with as little as 3% down. Debt to income ratios of 60% are still being approved and fixed rate, interest only products and adjustable rate products are still available.
For more information, please give me a call!
Jeff Ingram (678) 643-2442
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