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One-half percent down payment?

March 14th, 2009
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Lately it seems like all the real estate news is focused on the changes in the financing of a home. Perhaps that is as it should be considering how fast things are changing in this area. The Obama Administration is making changes left and right with the hope of getting some of the excess housing inventory SOLD!!!

Some of the new programs include a new one-half-percent down payment program called the “First House Program” that allows for 95.5% financing. There are quite a few restrictions to this program, so talking to a good lender is where you would want to start. If you don’t know any, I know a few and would be happy to provide contact information. One of the restrictions is the purchase must close escrow by June 5th2009, so you have to get going!!

Many of the new incentive programs have very short durations and as of today, the best ones expire at the end of 2009. The Press Democrat has been reporting increases in the number of homes sold each month, which is required for a turn around in the market. All this points to 2009 being a good year to buy a home for many people. That said, the ability to get financing for that home purchase is one of the big wild cards, which brings me full-circle to my opening statement. I expect we will be hearing a lot about new financing programs, rules and restrictions. I will try and write more as these things change.

First Time Buyers, Lending, New Laws

The 2009 Economic Stimulus Bill may help first-time buyers get a home

February 17th, 2009
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Uncle Sam wants YOU to buy a home.

In fact, they want you to buy one so badly they have added yet ANOTHER incentive for you to do so. The $790 billion stimulus package approved by the House and Senate includes benefits for any one buying a home, but is especially beneficial to first-time homebuyers. Among other things, the bill has created a true tax credit for first-time buyers that give them an $8,000 credit if they purchase a home in 2009. This credit does NOT have to be paid back as long as the buyer stays in the home for at least three years. A first-time buyer is anyone that has not owned a home in the last three years.

What this means is that for a first-time buyer, the Government will pay for a significant portion of your down payment. For example, according to BAREIS, the Median price for a home in Sonoma County in January 2009 was $290,000. If you buy a home at this price and use the FHA loan program with its low 3.5% down payment, your down payment would only be $10,150. At the end of 2009, the Government would give you back $8,000 of this money. Your effective down-payment would only be $2,150, or equivalent to less than two months rent. In addition to this, the entire down payment could be a gift from a relative.

When you combine this new incentive with the INCREDIBLE features of an FHA loan, it really makes sense for anyone that is considering the purchase of a home to take a serious look at what is available in the market today. Contact me at 707-327-9407 or by email at: davidharts@sbcglobal.net and I can help you get started in understanding today’s market and help you find a good lender that will treat you fairly and honestly.

For more information about the great benefits of an FHA loan today, read my post: The Advantages of the FHA Loan

First Time Buyers, Lending, New Laws, Tax Advantages , ,