Posts Tagged ‘first time home buyers’

to buy or not to buy

February 3, 2010

That is most certainly the question these days. The answer is an easy one if you look at the market as a whole – home values are down, homes are more affordable than they have been in years, financing is available, and there are incentives (federal and some state tax credits). With all of that in mind, it is a good time to buy!

Specifically, if you are in one of the two categories below, there has never been a better time to buy a home.

  • First time home buyers – Conventional loans available with as little as 5% down and FHA loans only require 3.5% down.  The seller can pay for most (if not all) of the closing costs.  The down payment can be a gift from a family member. The $8,000 tax credit still applies to first time home buyers (or anyone who has not owned a home in the last thee years).
  • Buyers looking to move up into a larger home – Buyers may lose money selling their current residence, but save substantially more on their next purchase. For instance, I’ve had clients lose a few thousand dollars on the homes they sold only to buy new homes (that were originally listed over $400,000) in the $300,000 price range. Also, don’t forget about the $6,500 tax incentive available to move-up or repeat home buyers.

Now is indeed a great time to buy, and if anyone is looking to take advantage of one of the tax credits, what are you waiting for?  Remember in order to claim one of the tax credits, the home must be under contract by the end of April and purchased by the end of June.

If you haven’t spoken with someone about qualifying to buy your first home OR seeing how much home you could afford prior to selling your current residence, now is the time! I would enjoy the opportunity to speak with anyone looking to take advantage of the current market and/or government tax programs.