Wow! I thought in over 15 years of selling real estate I had seen it all. I felt like I had all the answers, or, most of them. Until now! 2008 was the beginning of the challenge. As buyers became confused and even scared of the real estate market, I felt like I was always reassuring buyers that buying a home instead of throwing money away on rent was a good thing. I still stand behind that thought. The thought of owning should far outweigh the thought of being a tenant for the rent of your life. Since about the end of November, the buyers have been feeling more comfortable with buying. My business has really picked up since then. In Cedar City, Utah, we can still take advantage of the most amazing loan program available. Not everyone can benefit from this, Rural Housing Development loan. Even just 50 miles away in St. George, Utah, we can't use this program. It is only for the more rural areas. We don't really consider Cedar City rural but we are glad the state of Utah does. With this loan buyers can put no money down and the seller can pay the buyers closing costs. The buyer just puts down earnest money, usually $500 to $1,000 and at closing can even get some of that money back. You can't even get into a decent rental with that little into it. With first, possibly last and deposit, you will spend far more upfront to rent! With interest rates in the 4-5% range, the payments you can expect can be as low as rent. This loan also has no PMI (private mortgage insurance) that is additional money you can expect to pay just to insure your bank against your default on the loan. This PMI is required unless you put 20% down on your home. Many people do not have 20% to put down so this loan is incredible! I try to put everyone that can qualify into this loan. Usually 8 out of 10 of my customers are able to use this loan for their purchase. They must have very good credit and cannot make, I believe, over about $82,000 per year. Of course, this is on a scale and is based on how many members you have in your family. Right now, in Cedar City, Utah, we have the perfect combination of low interest rates, an amazing loan program, and the best home prices I have seen in years! I have builders comment all the time on the existing homes for sale in Cedar City and surrounding areas that they could not replace the home we are referring to. Some builders are even looking at existing homes to purchase for that very reason. I don't know why everyone is not making a move at this time......well they are! I am seeing multiple offers on the really hot properties and I am taking numerous calls and emails from buyers wanting to buy or even move up to a bigger home. More on "move up" buyers later!
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