10 Reasons First-Time Homebuyers should Buy Now

If you are a first-time homebuyer with a job and fairly decent credit, your dream of owning a home instead of throwing away your money in rent can come true.  There are so many incentives available to you that you simply cannot afford to wait.  Below is a list of the top 10 reasons I think a first-time homebuyer needs to make a move now:

1. Mortgage Interest Rates - they are at an unprecedented, all-time low (I am talking below 5%).  Mortgage rates are steadily going up and they will not be this low forever.  You will lose if you are waiting for home prices to go down, but have to pay a higher interest rate.  What if home prices don’t go down and you still have to pay higher interest rates?  Time is money and don’t forget about inflation.  The government is printing money and it will come back to bite us in the immediate future.
2. Best Inventory Now - there is an abundance of homes for first-time homebuyers to choose from.  Inventory is dwindling and the good ones are getting whipped up.
3. $8,000 Tax Credit - This is FREE money to all first-time homebuyers (this means people who have never purchased a home or haven’t purchased a home in the last 3 years).  This tax credit expires December 1, 2009 so if you do not close prior to this date, you will lose out (it is currently taking approximately 45 days to close on a loan so don’t think you can wait to buy until late October).  You can even amend your 2008 tax return to get the credit.
4. Inventory and Prices - there’s a lot of inventory so prices are competitive.  The inventory is going down and people are buying so as the inventory goes down, prices will go up.  Supply and demand!
5. FHA 203k Rehab Loan - this is a great program implemented by the FHA to assist in the rehab of homes that wouldn’t otherwise qualify for an FHA loan.  This loan will let you tack the repair costs to your FHA loan so you can make the necessary repairs to qualify for the 3.5% down loan program. 
6. USDA loan - this is a 100% loan that requires zero money down and no mortgage insurance (like a VA loan).  You can even roll in 3% of the closing costs.  There are income and area restrictions so you would want to check with your mortgage broker or Realtor.  This money may not be around next year so don’t wait!
7. Job Protection Programs - if the fear of losing your job is holding back from buying a home, the job protection program may ease your mind.  There are sellers offering this protection to buyers that would help assist in mortgage payments.
8. Lower Taxes in 2009 - taxes dropped in 2008 and are expected to go even further in 2009.  Florida residents are now able to take a $50,000 homestead and property values are being adjusted.  Taxes were incredibly high during the housing boom, making it difficult for homebuyers to afford the mortgage and the taxes too.
9. 1% Rule for Investors - if you are a first time homebuyer looking to buy an investment property, it makes economic sense to purchase if you are able to rent the property and collect 1% of the sales price that will cover the mortgage.  You can live in the house initially and then rent it out.
10. Short Sales are taking less time - most of the homes in the Florida market are short sales.  These homes are being sold at or below current market value and buyers are getting the benefit of a great home for much less than it was originally sold for.  Short sales have traditionally taken several months to a year to get approved, but they are getting better as lenders have been forced to stream-line their business.

Take advantage of this great time to buy and stop procrastinating!

Tampa Real Estate | Tampa Foreclosures | Tampa Real Estate News | Tampa Real Estate Blog

For more information, please contact me at info@buytampafl.com

Looking for a new home? Search the Tampa Real Estate market for a list of all available homes in the Tampa/St. Petersburg area.