Even though there are some really good reasons to buy a home as we venture deeper into 2010, there are some folks still sitting on the sidelines. Are you worried about your job, or about the economy? Are you still saving a little more for your down payment? Well, perhaps you should know that if you wait that much longer to pull the home buying trigger you may have to wait even longer.
Factors That May Cease Which Will Make Homebuying Much Harder
Low Mortgage Interest Rates Ending Soon
The Federal Reserve has been buying mortgage back securities for quite some time now to shore up mortgage agency debt and add stability to the financial and housing markets. This effort has had a positive effect on mortgage rates by keeping them down. However, this effort is slated to end March 30, 2010. When this happens it is expected that rates will begin to drift up.
The recovering economy should also have an impact on interest rates – cause mortgage rates to increase.
FHA Home Loan Program Changes
Three significant changes are on the horizon for FHA loan programs which will make it more difficult for some home buyers to get FHA financing. For some marginal credit potential home buyers FHA will require at least 10% down payment versus the normal 3.5%.
Those home buyers who were going to rely on seller assistance can expect the total allowable seller assistance to drop from 6% to 3%.
The up front mortgage insurance program is going to get more expensive which will raise the loan amount that the home buyer will get which could be a slightly limiting factor for how much of a loan a home buyer can qualify for which would limit the price of a home that they can buy.
Home Buyer Tax Credit Program Set To End
Since January 1, 2009 qualifying first time home buyers and repeat home buyers have been eligible to receive either a $8000 home buying tax credit or a $6500 home purchase tax credit for the purchase of a home. This program is slated to end April 30, 2010 as being the last day that a home buyer can put a home under contract to take advantage of the home buying tax credit.
Home Prices Starting To Rise In Some Locations
Except for some of the worst housing markets in the country like Phoenix, Las Vegas, California, Florida, and Texas some housing markets in the US are actually starting to show a steadying or even an increase in home prices.
If these four factors are to be considered when buying a home, it may be time to consider getting in the game. The home buying clock is ticking.
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