You may be among the masses of people wondering if they should consider buying real estate now, or wait. There are some strong reasons to act now… namely significant changes in the FHA loan requirements that are scheduled to change in January of 2009.
Statitics show that nearly 80% of the home loans being executed at this time are FHA backed loans. These loans have low down-payment requirements and best serve many buyers in today's market. However, FHA has announced some changes that could make these loans less favorable in 2009. The changes are as follows:
The current down-payment requirement is only 3% of the home's sales price. FHA has indicated this will rise to 3.5% in the coming year.
Borrowers can qualify right now for an FHA loan with a FICO score of 580. In 2009 this is anticipated to rise to 620. (Other qualifications must be met in addition to the FICO scores.)
Through June of 2009 there is a $7500 tax credit for first time home buyers. If you buy before the end of the year this credit will count towards your upcoming taxes.
FHA has proposed changes in closing costs that would require buyers to pay more fees than is currently required. This amount can vary from a few hundred dollars to well over a thousand.
So, there you go. A few good reasons to think about taking action before the end of the year.
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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.
We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.
We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at http://bestbuyersbroker.com or http://bestbuyerbroker.com.
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Some people are saying it's great to buy now and some people are saying that its horrible. I personally think, that if a person can wait 3 to 6 more months it will be much better. I believe that the cost of properties will drop to even lower than they are now. Regardless of all that, I still think, you put some very good tips out there for people to know. Thank you for sharing that with all of us!