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First time buying

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Services for Real Estate Pros with HomePointe Property Management

My wife and I have been married for several years now and we have been watching the market for a home to purchase. Being a first-time buyer, we have looking into FHA loans, Conventional loans, and down payment assistance programs. We currently don't have the 3% or 5% down, so a down payment assistance program was what we were planning on doing. Our lender told us that these types of programs are going under and we would have to be in escrow in the next couple of weeks to get into the program before they close their doors. He told us that we could refinance after making 5 payments to lower our mortgage payment and drop the PMI.

Although we have found many good deals as house prices continue to drop, we have decided to wait on buying a home. With the market continuing to drop, two hundred thousand State layoffs, and continuing foreclosures, it seems like quite a gamble to buy a home with the intention of refinancing in the 5-6 months. What will your home appraise for in 5-6 months? Is it worth it to by now or wait?

This is definitely a buyer's market. But Buyer beware.

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Stanley Barsch
Realty Executives Premier - Silver Spring, MD
Realtor, GRI - 240.882.8512

Jason - Maybe someone else might clarify, but why is he/she telling you to refinance after 5 months?  I would understand if the market shot up and you had 20% equity in the home, at that point you would be able to get rid of the PMI.  How else does he/she plan on getting you out of the PMI?

Now is the perfect time to buy, if YOU are financially secure.  It sounds like there may be ways around your situation with down payment assitance, but will you be able to hold a note?  If the answer is yes, then I ask what are you waiting for?  The interest rates are at an all time low, and overall the market at anytime will sky rocket.....guess who will be left with no house?

Stan Barsch

Aug 05, 2008 09:57 AM