One-half percent down payment?
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.