The Return of the First Time Home Buyer
Spring 2009
By Al Friedman
So you’re in your mid 20’s, good job, engaged, fiancé’s also working. The two of you talked about buying a home, but figured you can’t afford one, or there’s no single family homes in your price range, or you don’t have enough cash to close the deal.
You’re a young military officer and you’re now stationed at Ft. Meade s a result of the BRAC initiative. You know you’re going to be here for a while and would love to own your first home. Unfortunately, your cash reserves are a little depleted.
Well guess what folks? It’s safe to get back into the real estate waters again. Especially for you first time buyers.
Let’s begin with a small glimpse of the current local market. Due to price reductions over the last few years, more homes have now fallen back into the lower price ranges, that virtually disappeared between 2001-2005. As an example, in the 3 month period between 1/1/05-3/31/05, only 202 detached single family homes sold in all of Anne Arundel County with a purchase price less than $250,000. Contrasted to that, a current single day search resulted in 292 detached single family homes being available to purchase. In addition, lower priced town homes and condominiums add to the choices that are available.
How about financing and cash availability? Well, for that young couple I mentioned at the beginning of the article, FHA loans are readily available at around 5%. Home sellers are also stepping up, paying portions, if not all of the buyers’ closing costs. This allows that young couple to purchase their new home needing only 3.5% of the sales price as their initial cash investment. That young officer I talked about can use his or her VA benefits and potentially buy their first home needing NO cash.
The Federal government, understanding the necessity to get first time buyers back into the marketplace, is also stepping up. Beginning April 9, 2009, first time buyers will potentially be eligible to receive up to $8000.00 in tax credits, upon purchase completions. Speak to your real estate or mortgage professional for details.
The bottom line is that it’s not only safe but also highly advisable to get into the real estate pool, for you first timers.
By Al Friedman
So you’re in your mid 20’s, good job, engaged, fiancé’s also working. The two of you talked about buying a home, but figured you can’t afford one, or there’s no single family homes in your price range, or you don’t have enough cash to close the deal.
You’re a young military officer and you’re now stationed at Ft. Meade s a result of the BRAC initiative. You know you’re going to be here for a while and would love to own your first home. Unfortunately, your cash reserves are a little depleted.
Well guess what folks? It’s safe to get back into the real estate waters again. Especially for you first time buyers.
Let’s begin with a small glimpse of the current local market. Due to price reductions over the last few years, more homes have now fallen back into the lower price ranges, that virtually disappeared between 2001-2005. As an example, in the 3 month period between 1/1/05-3/31/05, only 202 detached single family homes sold in all of Anne Arundel County with a purchase price less than $250,000. Contrasted to that, a current single day search resulted in 292 detached single family homes being available to purchase. In addition, lower priced town homes and condominiums add to the choices that are available.
How about financing and cash availability? Well, for that young couple I mentioned at the beginning of the article, FHA loans are readily available at around 5%. Home sellers are also stepping up, paying portions, if not all of the buyers’ closing costs. This allows that young couple to purchase their new home needing only 3.5% of the sales price as their initial cash investment. That young officer I talked about can use his or her VA benefits and potentially buy their first home needing NO cash.
The Federal government, understanding the necessity to get first time buyers back into the marketplace, is also stepping up. Beginning April 9, 2009, first time buyers will potentially be eligible to receive up to $8000.00 in tax credits, upon purchase completions. Speak to your real estate or mortgage professional for details.
The bottom line is that it’s not only safe but also highly advisable to get into the real estate pool, for you first timers.
For more info about this article and other real estate matters, visit my website @ Alchefsellshomes.com.
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