Archive for January, 2009
USDA No Down Financing for 1st Time Buyers
As an agent who has taken a specific interest in assisting first time buyers I spend quite a bit of time making sure that I am knowledgeable on financing options that make this goal possible for my clients. Many of the clients who come to me have been told that buying is not a realistic option for them until they save up a considerable amount of money for a down payment. While saving money is always a great idea you should know your options.
First time buyers who have not been able to save up a down payment should know that there are still 100% financing options out there that can help get you in a home during this buyers market cycle. USDA Rural Development Housing Section 502 loans are 30 year loans that require no down payment. USDA loans are primarily used to help low-income individuals or households purchase homes in rural areas. Most of the area outside the Redding city limits would fall in this category. The published income limits are;
Family Size 1 2 3 4 5 6 7 8
LOW INCOME 30150 34450 38750 43050 46500 49950 53400 56850
MOD.INC- 49550 56600 63700 70750 76400 82050 87750 93400
LOW INCOME 30150 34450 38750 43050 46500 49950 53400 56850
MOD.INC- 49550 56600 63700 70750 76400 82050 87750 93400
Contact us for more information on USDA financing and a list of USDA eligible homes.
Buying a home like a Jr. High Dance
Remember back in Jr. High when you went to your first school dance? In many ways the real estate market we are in is just like that. No one was quite sure what to expect and almost everyone is waiting until the dance floor fills up before they can convince themselves that it’s okay to join in. After all, that seemed the safe thing to do. Once the dance floor filled up you could find a spot off to the side where you wouldn’t stand out. Trouble was, not only would the song be half over by that time but you also had to dance in whatever area was left on the dance floor. The best spots were up front near the band but that’s where the “good dancers” were right? They walked out there and picked their spot while everyone else sat and waited. Because they were willing to go out when the music started they danced the whole song in the spot they chose. Half the time they weren’t even good dancers but it didn’t seem to matter to them, they were there to have a good time.
Well, in case you haven’t been listening the music is playing. What’s holding you back?
It’s a buyers market so…….why aren’t you buying?
For some it may be a matter of getting their finances in order so that they are able to obtain a loan but what about those who are able to buy but are sitting on the sidelines and……waiting. If that describes you then I would encourage you to take a moment and really consider your reasoning and motivation as objectively as possible. It could be that you are allowing yourself to make decisions based on a ”herd mentality” that is counter to your best interests.
Remember a few years ago when it was a sellers market and buyers were fighting over the chance to overpay for a home? That was herd mentality too. No one wanted to be left out and they were going to pay whatever it took to join the dance. It didn’t matter that the sellers held all the cards, buyers were lining up and competing to buy.
Now it’s the buyers who hold all the cards. Sellers are being forced to make price and term concessions unthinkable just a short time ago and yet many buyers are reluctant to buy. Why? Could it be that buyers are afraid to buy because other buyers are waiting? That sure seems to be the case. Driven by the herd mentality and overwhelmed by negative media many buyers have become like a deer caught in the headlights (pun intended) and have become reluctant to make any decision at all. Frozen and unable to decide what to do while they wait for things to change.
Using that as a model for future behavior we have to assume that as soon as buyers sense that others are stepping in and taking advantage of the comparative values in today’s market others will follow and the swing to a sellers market will be taking place once again.
And once that happens the band won’t be playing a buyers song anymore.
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Our Customer Satisfaction Rating, based on an independent survey, exceeds 97%. This is reflected in our 2008 "QUIE" Award recognizing the TOP 10 REAL ESTATE COMPANIES in NORTH AMERICA! REP/GMAC in #2.
