First Time Home Buyer

The headlines are full of disappointing news regarding the housing industry; however, the current flat economy is creating opportunities for many. As in many areas around the United States, people who have wanted to buy in high end areas such as Boston but could not are reaching for their dreams of finding a first home in a coveted location. It seems that the buzz word in real estate right now is opportunity. According to many real estate companies, there are a lot of great deals to be found in today’s housing market. This does not come as a big surprise to the many folks looking to buy their first home, particularly in Boston. Massachusetts home prices have fallen around 10 percent since 2005 which is allowing many first time home buyers to enter a market they previously could not afford.

One of the big draws for the first time home buyer today is the perks they are finding. With the efforts of the government, housing development centers and other incentives available first time home ownership is a dream come true for an increasing number of people all over the United States and all over Massachusetts.

Many programs in Massachusetts offer a number of resources for the first time home buyer including classes, information, guidance and even a lottery system for the individuals that qualify to purchase condominiums and homes at below-market prices. There are plenty of enticing programs available for the first time buyer as well in the Massachusetts housing. If a person works for the town or city as a teacher, firefighter, police officer or other public service position they can be eligible for lower interest rate loans. Similar programs are available for people using public transportation or who are trying to rehabilitate a home that is in rough condition.

Naturally there are conditions to be eligible for most programs in Massachusetts and other places around the U.S. Income guidelines and limits as well as other stipulations may apply; however, it is always a good idea to see if you are eligible for any incentive programs. Doing so just may save you significantly on your first home and may allow you more home than you dreamed possible.

When it comes down to it, if you are considering buying a first home, the best time is now. It is a buyers market and there are a lot of great deals and incentives available to the first time home buyer! Expect to possibly be required to take a home buying 101 class or other classes that are offered through incentive programs. Additionally the governmental incentives and tax credits are available to most all first time home buyers to try to stimulate the stagnant housing market. If you are ready the market is primed just for you, run your credit, smooth out the wrinkles and start shopping for that dream home. Make your dreams your reality while the market is yours!

The program launched by California’s Governor reduces the interest rate on 30 year fixed mortgages to a below market rate. This is aimed to help the first time home buyer purchase targeted foreclosed homes in certain areas of California that has been hit hard by the foreclosure crisis. These homes are reduced to bargain prices to make them more attractive to the first time home buyer. First time home buyers purchasing a home to live in as their primary residence are eligible for the program. Additionally they must be a U.S. citizen or legal resident and meet the credit, income and loan requirements of the program.

The program is run by the California Housing Finance Agency. The program has estimated $200 million to aid from 800 to 1,000 families looking to buy homes. Income limits apply as couples are allowed to earn up to $67,800 in some counties and up to $73, 560 in others; the limits to qualify increase for families with three or more persons.

Certain credit requirements apply as well as borrowers must have a credit score of at least 660 for a loan up to 95 percent of the value of the home. For homes that exceed 95 percent of the homes value the credit score must be over 680 to qualify.

Not every foreclosed home in the specific areas of California is eligible for this program. Foreclosed homes that are selected by Fannie Mae, CitiMortgage, HomEq Servicing and Wells Fargo Premier Asset Services are the only homes eligible for this program. Additionally the homes must meet all CalHFA and Fannie Mae inspections, health and safety codes and repairs requirements to qualify. There are currently almost 100 homes that are on the list of eligibility now in the counties of Stanislaus, San Joaquin and Merced and more are being added every week. All of the homes listed are priced at least 12 percent below their estimated value helping the first time buyer reach the dream of homeownership.

Potential buyers must be aware that they are required to complete a home buyer education counseling program. These programs are available over the Internet, in person or over the phone; however, a certificate of completion must be issued through Fannie Mae or Freddie Mac identified counseling administration agencies, mortgage insures or HUD approved buyer counselors to be valid. The lenders themselves also are subject to certain requirements including being CalHFA approved lenders.

Despite the qualifications and requirements both the potential first time home buyer as well as the neighborhoods of the eligible homes are thrilled with the program. Buyers in need are being united with homes in need and offering revitalization for many neighborhoods in the counties that have been hit hard by the foreclosure crisis in California.

The national housing market news has informed us of dropping housing prices, foreclosures and a number of homes on the market that are not selling. This truly is bad news if you are trying to sell a home; however, this is good news for the first time home buyer with no current home to sell.The first time home buyer will still face the same daunting process of buying; however, there is a plethora of resources today including a few tips to get started:

Ready or Not? Home owning is a good investment and there are many advantages to owning a home. Before making the big decision take a look at your finances and consult with your credit history, your income and your savings to see just how much house you can afford. A meeting with your banker will help you understand this information.

There are programs that allow you to purchase a home without putting any money down; however, it is a good idea to have savings available for down payments and closing costs. With a good amount of money in savings you will often get a better mortgage rate.

First Steps: The first step, once you are sure you are ready, is getting pre-approved by a lending institute. Your lender will let you know what type of loan you can receive and the price range of houses in which to look.

Finding a good real estate agent to work with will help you find what you are looking for and be able to provide you with information about the neighborhood and the house itself.

Resources Available: There are financial and informational resources for the first time buyer on line as well as free workshops available in many areas. These classes will often bring in experts to teach about loans, credit, home inspections and the entire buying process.

A workshop is great for those who are seriously thinking about buying their first home as they can also learn about special loan programs available to them. For instance, the Federal Housing Authority offers low interest loans and often requires little to nothing of a down payment. There are other state programs and area housing programs that offer great first time buyer incentives as well.

Considerations Before Buying: Owning a home is not like renting a home. A homeowner will be responsible for all of the maintenance of the home and will have to fix anything that goes wrong on the property itself.

In addition to the monthly mortgage payment there will also be property tax, home insurance, maintenance and those unexpected problems that come up including replacing appliances; create a savings for those bumps in the road.

The market is right for the first time home buyer today more than it has been for a long time. If you are ready financially and are ready to take the steps it takes you can be on your way to seeing that moving truck in front of your new home in your new neighborhood!