Housing and Economic Recovery Act of 2008 was signed by President Bush last week to deal with the economic issues surrounding the housing market. Critical to many buyers, and especially first time home buyers is the end of seller assisted down-payments on FHA mortgages.
Up until September 30th, home buyers obtaining an FHA garanteed mortgage can receive seller downpayment assistance for the FHA required 3% downpayment. ON October 1st it all goes away.
If you are looking for a home and struggling with coming up with your down-payment, this window of opportunity for the seller to assist you with it will close on October 1st! The loan has to close before October 1st, it cannot be in process.
What will be even more challenging for first time buyers is that the minimum FHA required down-payment will rise to 3.5% on January 1st 2009.
For buyers who have been trying to time the market in buying their first home, the cost and out of pocket expense is about to go up significantly.
On a $150,000 home 3% is $4,500 more dollars, $6,000 on a $200,000 home as of October 1st.
On January 1st that becomes $5,250 and $7,000 respectively. At the same time mortgage rates are rising, erasing many of the savings from the decline in home prices.
Don't wait too late and find yourself waiting yet another year with yet a new savings goal before you have a home of your own.
Find your home today at www.TampaHomeBuyer.info
Another post by your Tampa Neighborhood Realtor, Rick Fifer, 813-758-7444
Florida Executive Realty
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