There are a number of reasons why it is a great time for first-time home buyers to jump in and buy this Fall, including:

• The inventory is great and prices are very competitive as the market is stabilizing, thanks to the government takeover of Freddie Mac and Fannie Mae.

• Interest rates have already dropped .5% are they are likely to decline further as Freddie and Fannie get government help.

• The Federal Housing Administration recently boosted its loan limits.  In Orange and Durham Counties, FHA provides mortgages up to $331,250.  The great thing about FHA is the borrower only needs to put 3.5% down, and the down payment can be a gift from a family member.  Under FHA guidelines the seller is able to pay up to 6% of the purchase price towards the buyers closing costs.   FHA allows for people with less than perfect credit, often as low as a 560 credit score, to qualify for a home.

• The new first time home buyer tax credit will shave $7,500 off a buyer's federal tax bill due April 15. Buyers who don't owe tax, will get the money as a refund.

The government's definition of a first-time buyer is anyone who hasn't owned a home in the last three years.

Are you looking for more information on Freddie Mac and Fannie Mae or real estate in general, if so please visit me at www.teamjodi.com.

See also:

• New Tax Credit for First Time Home Buyers
• The Mortgage Report
• Freddie Mac and Fannie Mae
• Year-to-Date Market Update 2007 vs. 2008
• Wake County, North Carolina 2008 Second Quarter Market Update
• Answering the Tough Questions