First Time Buyers – It’s the time to buy!!! Mortgage rates are at historical lows – approximately 4.75% (on a national basis according to Chase Home Mortgage.) You have so many advantages over other buyers..for one you are much more flexible with the terms of escrow – you have nothing you need to sell first. The government offers first time home buyers a $7500 incentive plan as of 2008 – thanks to the Economic Stimulus Plan of 2008.
FHA loans are now up to $625,500 which is a lot more than the $417,000 conventional loan amount and that really helps out here in the Southern California real estate market. It’s practically a necessity here. There are several possibilities here for 1st time homeowners – in North Redondo Beach there are very nice two-on-a-lots available in the $650K range. They are pretty close to owning your own home and typically average in the 2000 sq ft range with at least 3 bedrooms and 2 bathrooms & your own 2-car garage. You can get into an FHA loan nowadays with as little as 3 1/2% down. That is about $20K for a home in this price range. Sellers can credit you back up to 6% of the sales price which can help out with those closing costs including things like points you will pay to buy a loan.
Not to be forgotten is the “mortgage deduction” you will gain as a homeowner. This is huge! In most cases, you can deduct all of your home mortgage interest which is what you pay most of in the early years of an amortized loan pay-off. You can also deduct your property taxes. This makes home ownership one of the best deals in town. Often home ownership is less expensive after taxes than renting! Talk to your accountant for more details.
Some examples of properties available here in the South Bay that a first time buyer could purchase using an FHA loan amount of up to $625,500 with only 3.5% down would be – http://www.mrmlsmatrix.com/DE.asp?ID=3849654691
Happy House Hunting First Time Buyers!