It has been a very tough time in the housing market for more than a year with faint indicators surfacing there is no good solid news that the homeowners can look at.
On the other hand, if a person’s faith in his financial future were strong they would be hard press to find a better time to buy a house
The market value of homes has taken a pummeling, bank repossessions are through the roof, property values have plummeted, sellers are in a weaken position when negotiating a selling price. A future homeowner has the situation going their way and then this administration passes the Economic Stimulus Package that will give a homebuyer $8,000 credit against any taxes he might owe.
To be sure, there are qualifications that must be met; you cannot have been a homeowner in the last three years. Your must live the home for three years, this will prevent ‘house flippers’ from coming in and making a quick dollar at the tax payers expense. There are also income restrictions to be met for both a couple buying a house and a single person buyer. To maximize the home purchase the buyer(s) should put 20% or more down, if possible get the fewest number of years on your fixed mortgage. Most importantly do not get in over your head on monthly mortgage payments. Too many homeowners went right to the crumbly financial edge of being able to pay their mortgage and when their finances gave way they went over the edge.
For many of us we have been given a second chance at being a homeowner, if you missed the last affordable housing market opportunity here is another one, we just have to have learned from the others mistake and not repeat them.