Here are the 4 areas that the Stimulus package is supposed to address as we move forward in this economy:
- Lower interest rates for home mortgages;
- A greater ability to get financing through FHA, Fannie Mae and Freddie Mac in high-cost areas;
- A true tax credit incentive to buy a home NOW; and
- Foreclosure mitigation and short-sale standards.
So far, I haven't really seen any changes but these things take time, I know. Here is my assessment of the 4 issues to date:
1) Interest rates have been unaffected. If anything, they have risen slightly.
2) FHA has become more difficult to work with. The typical 1st time home buyer has a difficult time meeting the down payment requirements that FHA demands and their credit score and documentation is not helping.
3) Tax credit is great, but it doesn't affect anyone's purchase power in the short term.
4) Foreclosure mitigation? I'm not sure what this means. I know the courts will have the ability to interject their ideas to help homeowners facing bankruptcy, but I have not yet seen this in action, either. This will be interesting.
Has anyone seen any definitive effects yet? Let me know. I really want to stay positive if possible.