Earlier this year Congress passed a stimulus to breathe some life into the housing market. An $8000 tax credit for first time homebuyers created a spurt of sales. If you missed out on this opportunity or did not qualify, don't worry, it is still a great time to buy a home. With a glut of inventory, low prices and rock bottom interest rates, you will save $8000 many times over during the course of a 30 year mortgage loan.
Special lending options are available as well. 100% financing is available to Veterans, and for homes in USDA designated rural areas. FHA financing can be attained for as little as 3.5% down. If fact, the down payment money may be gifted from a family member or friend. HUD owned homes require a down payment of only $100! Special programs are available to certain groups of workers. Local communities and states may offer down payment assistance on the purchase of homes as well. Contact a reputable realtor or loan officer for more information.
Many choices are available to buyers due to the competition among sellers. Not only are sellers in competition with their neighbors, but with banks as well. Short sales and foreclosed properties are often priced below market value, which forces the conventional seller to decrease the asking price. He may be more likely to contribute to closing costs, make repairs and offer a home warranty. These factors offer unique opportunities to buyers, who will pay less money for a better property.
Even if you have a home to sell, don't be discouraged, you can still benefit in this market. Regardless of whether or not you take a loss on the sale, you will have equity in a new home. Another option would be to rent your current home to increase income and claim tax deductions. Furthermore, why not purchase an investment home at these discounted prices? It can be renovated and resold or rented and sold at a later date for a profit.
Low prices and high inventory will not last forever. Don't miss out on your chance to invest in real estate once again. Contact a local realtor who will identify properties that will increase your worth in the long run.