5/7/08

SHOULD YOU WAIT TO BUY? and NEED HELP TO MAKE YOUR DREAM COME TRUE?

Should you wait to buy?

This is a question that people are asking frequently these days. They want to know how they'll know when the market hits bottom and when they should make their big move to buy. Well, for starters, let me tell you that you won't hear a loud DING when the market hits bottom. As I've said many times lately, right now we are experiencing a "perfect storm" for Buyers, with prices down, inventory high, and interest rates hovering around 6%. Has the market hit bottom? Probably not. The bigger question is, does it matter? Attached is an article posted by Elizabeth Weintraub at www.about.com which explains why interest rates should be the determining factor in whether or not this is the time to buy. She explains why a difference of even a half point will make a difference in the amount you pay each month and a difference of a couple of points will make a HUGE difference in your buying power. The important thing to understand is that the lower the rate, the higher priced home you can afford to buy.

Now if you are thinking about moving up to a more expensive home, but you are worried about taking a big hit when selling your current home, the article notes that if you have to reduce your selling price by, say, 10%, the home you buy will probably be reduced by about the same percentage. In this case, the 10% you "lose" will probably be trumped by the 10% you save. If you or someone you know is contemplating purchasing a home, please be sure to read this article.

Need help to make your dream come true?
(Or do you know someone who does?)

AmeriDream
Down Payment Assistance Program

The new and improved AmeriDream Down Payment Assistance Program with paid closing costs is now available in all of Maricopa County until December 31, 2008.

To help you and the housing market, AmeriDream (a non-profit organization) will gift the downpayment so you will have instant equity in your new home. AmeriDream will also gift your closing costs for an FHA loan. YOUR OUT OF POCKET COST IS ZERO.

In some cases AmeriDream will gift money to pay off your current bills.

Currently, 300 families a month are taking advantage of this new program.

FHA Loans

Every year the FHA helps thousands of first-time home buyers move into the house of their dreams.

Additionally, the FHA has many options for homeowners who want to refinance, may be facing difficulty, or just want to know about the servicing of a loan.

The following information comes directly from the FHA...

First time buyers:

Isn't buying a home really hard? Don't you need a lot of money down and perfect credit? -

It's not nearly as hard as you might think. Our 100 Questions and Answers covers most of the situations that you might think of. FHA understands that many first-time homebuyers may have had some financial problems in the past and don't have a lot of money saved. That doesn't mean you can't buy a home. Because FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements, making it easier for you to qualify (or get approval). Even if you have had credit problems such as bankruptcy, it is easier for you to qualify for an FHA loan than a conventional loan. FHA has a low 3% down payment requirement, and that money can come from a family member, employer or charitable organization. Many other conventional loans don't allow this.

Homeowners:

Expanded housing assistance will be provided for at-risk borrowers who are in danger of losing their homes, under a new plan from the Federal Housing Administration (FHA). FHA will be able to insure more mortgages for more people, including those for borrowers who were late on a few payments and/or received a voluntary mortgage principal write-down from their lenders. Reducing a rising tide of foreclosures is its goal. More…

Warmest Regards,
Pook