10 Reasons First-Time Homebuyers should Buy Now
Posted May 6th, 2009 by Sheila
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:
- 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.
- 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.
- $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.
- 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!
- 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.
- 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!
- 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.
- 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.
- 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.
- 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.
Technorati Tags: first-time homebuyer,Florida,mortgage,owning a home,interest rates,FHA loan,USDA loan,taxes,investors
Finding a job in today’s economy is very tough. Employers have their pick from the cream of the crop and are no longer seeking the fresh, young college grad. Why would they when they can hire an experienced person with impressive credentials for the same amount of money? Employers know people are desperate and are willing to take jobs they ordinarily wouldn’t have dreamed of interviewing for in the past. They also know these people will stick around for a while because the job market isn’t going to get any better for the next few years to come. Companies are laying off many of their “worker bees” so having a few highly experience people to do the work of ten will greatly benefit their business. The big question is how does the job applicant find the right employer and vice versa? Searching for jobs on Monster.com or Careerbuilder.com just aren’t going to cut it. They are getting an overwhelming amount of resumes and the chances of your resume actually being read is slim. The only way to find these coveted jobs are through the people you know. A good way to find these important contacts is via Internet social networking sites like Twitter, Facebook, LinkedIn or Plaxo. These sites allow you to get to know people you wouldn’t otherwise meet. By simply posting “What are you doing,” you are essentially letting other people in to your world. These sites will allow you to post blogs, photos, videos and the URL to your website. All of these things help a potential employer get to know what type of person you are as well as your job experience. Personality goes a long way in attracting employers and is just as important as your job experience, sometimes more important.
A new and growing concern in the Florida real estate market is drywall that was manufactured in China. U.S. manufacturers of drywall couldn’t keep up with new homebuilders demand during the housing boom from 2000 to 2006. In addition to the housing boom, Florida suffered through a bad hurricane season that dramatically increased the need of drywall. For those of you asking "What in the heck is Chinese drywall?" It is a defective drywall that contains Sulfur Dioxide that when wet emanates a foul odor. The sulfur-based gases can cause corrosion to air conditioning coils and anything metal in your home. It is not known at this time the extent of damages the drywall could do to your home or any health problems the defective drywall could cause. The main health concern the CDC has posed are possible respiratory problems.
I have seen a strong influx of first-time homebuyers coming off the fence and helping the housing market and the economy. The $8000 tax credit that became effective as of January 1st this year is apparently working. Not to be mistaken with a tax deduction, this is a true tax credit. The benefit of a tax credit is that is a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1000 to $1500 when all is said and done. The best thing about the tax credit is it is free money that does not have to be paid back! 
How does a buyer who cannot afford a hefty down payment take advantage of the great home deals on the market today? Most of the lower priced homes in the $50,000 to $90,000 price range do not qualify for a straight FHA loan because they need work. So what is a buyer to do? There is no need to fret because you may be able to qualify for a home by implementing FHA’s "Streamline (K)" Limited Repair Program! Homebuyers will be able to make repairs up to $35,000 before moving into the home under this program. The program permits up to $35,000 of additional financing into their mortgage so repairs can be made to bring the home up to FHA standards as identified by a certified home inspector or FHA appraiser. A buyer can use the loan for what is considered "simple’ repairs, meaning repairs that do not involve the use of an engineer or an architect. Basically, it will allow you to repair or replace existing structures such as roof replacement, HVAC systems, flooring, minor remodeling of kitchens, plumbing and electrical systems, painting the interior and/or the exterior, purchase appliances, etc. 
-- 