As I look around at today's real estate market I am reminded of the year I started in the business. It was a hard time for buyers to get loans, there was several months inventory on the market including REO and HUD & VA foreclosures and rates were higher then than we have seen in the last 18 years.
Special financing programs targeting first time homebuyers seemed to be the answer to the home sale slump. HUD offered low and no down payment loans to first time buyers applying for FHA loans even paying up to all closing cost for the high net bidder on a HUD foreclosure.
Some of the local lenders were offering "community mortgage" programs offering low down payments, allowable gift cash and no mortgage insurance.
Just like now some builders were renting spec built homes and some offering "rent to own option.
In short we have come full circle since 1990.
As I hear the news about the governments tax credit to first time homebuyers and the Fed dumping billions into the T Bill and Mortgage Securities market I can't fight the feeling of Déjà vu.
Once again mortgage companies, builders, real estate professionals; title companies and any other company connected with the real estate market are dependant on the "First Time Home Buyer" for their survival in this slow market.
I say to the first time home buyer NOW is the time to take advantage of low rates, special programs, tax credits and sellers clambering for your attention to their home.
More information on homes for sale in Richmond Virginia at http://www.RickSaleRealty.com