Time is Running Out!

If you want to put down less than 3.5% on a home, time is running out.  Beginning January 1st, 2009, the minimum down payment on an FHA loan will increase to 3.5%.  On a $150,000 house, that’s $5250.00 instead of $4500.00 (a difference of $750.00).  It doesn’t sound like a lot, but it can add up.  It’s also money that could be used for something else.  When  you move into a new home, there are many things to buy – a refrigerator, window treatments, furniture, etc.  That extra $750.00 will go a long way towards a new refrigerator, or new furniture.

If you want to buy a brand new home, now is the perfect time to ask for extras.  Many builders’ fiscal years end with the calender year, and others rely heavily on quarterly results.  November and December are great times to ask for freebies, provided your home will close prior to the end of the year.  In the past, I’ve been able to get clients a free washer and dryer, refrigerator, and blinds thrown in for a home closing in December.  We can also ask for more money off for a home closing by the end of the year – the builders will be aggressive on their discounts.  I’ve seen some recent discounts from 13% – 20% off the sales price. 

100% financing is still available, as well as repayment for a the down payment on an FHA loan.  For a full description of these programs, see my earlier blog, “With the current ‘Credit Freeze’ can I still buy a house?”  Good lenders are staying on top of the changes in the current market.  While it is more challenging, home loans are still available for qualified buyers.