The American dream of home ownership is still attainable. In fact, it could be more attainable now than in many years in the past.
According to the National Association of Realtors' housing affordability index, homes are more affordable now than at any time since the group started the index in 1970.
The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.
There is a large inventory to choose from, including beautiful homes for sale at bargain prices, foreclosed homes that could be purchased for a fraction of their value, and new homes that are competitively priced. With more choices, buyers could get what they want at a price they can afford.
New home builders are even getting into the act with more aggressive pricing. Some advisors recommend looking at completed new homes first. Builders want to clear their inventory of newly built homes.
Mortgage rates are historically low. It's not just the price of a home that reflects affordability, mortgage terms also affect the monthly payment.
If you act in November, you can still get an income tax credit of up to $8,000 if you haven't owned a home within the last three years. The offer may be extended by Congress.
Though many local banks and mortgage companies are asking a down payment of 10 percent and a high credit score, mortgage loans from FHA, the Veterans Administration and Fannie Mae require less.
FHA loans are available for a 3.5 percent down payment. They ask a credit score of only 620.
Fannie Mae will accept a 3 percent down payment, and the VA may require no down payment on loans up to $729,000.
All debt is not created equal, say authorities at bankrate.com. While consumers are urged to not to carry large credit card balances, a home mortgage is one of the best uses of credit.
Home buyers have negotiating power and the ability to get loans that will fill their needs and make their wishes of home ownership come true.
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