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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