If you’re reading the headlines, and looking at the real estate section of the paper – you know that NOW IS A GREAT TIME TO BUY YOUR FIRST HOME!
The equity you grow, here in the Triangle, over the next 4 to 5 years should be significant… but the question is, can you still purchase a home with NO MONEY DOWN?
Well – yes, and no. If you or your spouse is a Veteran, yes. There are programs specifically designed for Veterans.
If you are considering a purchase in a more rural area, (like Fuquay, or Wendell or most of Johnston County) there are USDA 100% loans available. These loans are property specific, but the rates are good and the qualifying is generally reasonable (To see if you meet the income qualifications for this program click here. To see if the property you are interested in qualifies for this program, click here.)
If you have heard about FHA loans, you might also know that Congress recently passed some changes to this program. With the new housing bill, Congress changed the minimum downpayment for FHA financing to 3.5%.
The details of this are not yet available – but it does not appear that this mean you will need to save 3.5% for downpayment, AND the money for your closing costs and prepaid items! WHEW! On average – you might need an extra $500 to $750 dollars in order to qualify for this loan (and remember, FHA allows for gifts!) Also, if you are looking at FHA foreclosed property – the downpayment requirements are LESS!
Now is a GREAT time to purchase Real Estate! Congress is also giving First Time Homebuyers a $7500 Tax Credit if the property closes prior to July 1, 2009! So start taking your lunch to work – and SAVE UP! Now is the time to buy!