Is purchasing a new home something you've always wanted to do but felt you couldn't afford? Well, now may be the time when you can take steps to get that new home you've always dreamed of.
According to the Department of Commerce, prices are down 13.5 percent from December of 2007. Add to that tax credits, low interest rates, and even special incentives from new-home builders, and buyers now have ideal financing conditions.
First things first. Be sure to get a mortgage contingency built in to any contract. This is vitally important in this day and age when getting a mortgage is not always an easy thing to accomplish.
Two good financial options for today's new-home buyers are FHA loans and Builder and Developer Loans.
FHA loans have some great features to offer the new home buyer:
- A small down payment, usually about 3.5 percent,
- Easy to qualify for, even for home buyers with less than perfect credit ratings,
- Lower interest rates, and
- More security.
To learn more about FHA loans and how to get one, visit FHA Loans, contact the U.S. Department of Housing and Urban Development, 451 7th Street S.W., Washington, D.C. 20410, or call the FHA at 800-225-5342.
Another great option is financing sponsored by the builder or developer. Incentives may include:
- Low interest rates, often 5 to 5 1/2 percent,
- First year of mortgage payments made by the builder or developer,95 percent financing,
- Deferred mortgage payments (although interest continues to accrue),
- Builder or Developer-paid closing costs,
- Cash incentives such as insurance or taxes paid for you for up to a year.
Whatever option you decide to take, be sure to lock in your mortgage rate when you first negotiate the deal. Don't leave it open-ended as it could change by the time you go to closing.
This time next year, you could be living in your dream home. The market for new-home buyers may not get any better than it is now, so why not take advantage of this opportunity to get a great deal on a new home for your family.
For some wonderful deals in new homes, contact the Marla Schneider Team. They have homes available in all the best spots, including Glenview, the North Shore, Wilmette and Northbrook.
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