The news this Thanksgiving season is good for first-time home buyers.
First-time home buyers experience the mixed feelings of excitement and fear, no matter the economic conditions, when considering purchasing a home. This thanksgiving season gives good news to the first-time buyer and should lessen the fear factor.
Many who have considering purchasing a home have held back because of the fear that now is not the time to buy. The reality is that now is one of the best times to buy. First-time buyers still have the opportunity to take advantage of low mortgage rates and more affordable home prices.
On a national level, home sales are rebounding. On a more local scale, the state of California sales were up by 13%. Here in the Bay area ( California ) sales were up and sales were down depending on the area.
As the Hope for Homeowners program helps current homeowners to stay in their homes, inventory should decrease causing home prices to stabilize. This is good news for the first-time home buyer. First-time home buyers and move-up buyers tend to hold back in the decision process for fear they will buy a property which will depreciate greatly in value. With the stabilization of home prices that fear is diminished.
With the focus on helping homeowners stay in their homes and as a plan for national economic recovery is put in place, the bottom of the market should be reached in 2009; some areas have already reached the bottom with homes prices no longer in decline. Another reason first-time home buyers can be less fearful.
First-time home buyers are also fearful they will not be able to obtain financing. The media has continually reported that credit, especially in the mortgage industry is very tight. First-time buyers need to be aware that FHA is still in business and going strong.
Currently, FHA is closing about 100,000 loans a month according to Housing and Urban Development Secretary Steve Preston. Secretary Preston has stated that there is no credit crisis at FHA.
First-time buyers have also heard that you can no longer purchase a home without a minimum of 10% down. This is not true for those who obtain FHA financing. The FHA program only requires 3% down payment. A reasonable credit rating and verifiable employment are also required to obtain financing.
Using the services of a good Realtor® can help first-time buyers to determine which areas are the best for their home investment dollars. Knowledgeable Realtors® can also advise the first-time home buyers of down payments assistance programs and mortgage loan options.