Article by Carol M. West, Remax Equity Group
With the housing market being so important to our economy, we must make it a point to be aware of changes as it begins to pick up momentum. These changes provide opportunities.
Now more than at any time in the past, due to the economic stimulus package, there are wonderful buyer incentives available, making it a great time to buy your first home or, move up to the next size home you need, for the following reasons:
-Buyers can take advantage of the First Time Buyer’s $8000 credit before it expires.
-Buyers who qualify and need a larger home for their growing family can use the “Move Up” Credit and benefit from a $6500 tax credit.
(You can find more information regarding these taxes credits and qualifying income levels at: www.federalhousingtaxcredit.com)
-Interest rates are still at an all-time low, making mortgage payments easier to pay and providing the opportunity for many people unable to buy in the past. We hear our Federal Reserve Chairman will be raising rates at some point to avoid inflation. This will create a slow upward trend in interest rates to a point that many will find payments too high again for them to afford to buy a home.
-Home prices have been the lowest in decades, but are starting to rise up again in some markets. Paying rent is not building wealth but helping to pay someone else’s mortgage. Today, you will be surprised to learn that for only a few hundred dollars more a month, you may be able to buy your own home, earning equity as you build your financial future.
Additionally, if you are selling your home to move up, the housing you want may be more affordable now, allowing you to relocate where you really wish to live, perhaps closer to work, family or downtown Portland. Moving closer to your workplace saves gas, money, time and wear and tear on your vehicles.
But, these incentives will not be available forever! In fact, they will start disappearing in the next few months and will be replaced by more restrictive conditions.
For example, FHA (Federal Housing Authority) loans are expected to require higher down payments (10%) for consumers with credit scores below 580; and is now proposing lowering the acceptable seller concessions of 6% down to 3% applied to closing costs, making it more difficult for those trying to buy their first home. (Realtor, March, 2010 pg. 10)
Considering changes to come, don’t wait to take advantage of this once in a lifetime window of opportunity for you and your family. You still have time – if you have a binding sales contract signed by April 30th, 2010, you will have until June 30th, 2010 to close your transaction and take advantage of these tax credits.
