Low to Moderate Income First Time Buyers

If there is a silver lining to the storm clouds hanging over the housing market in Solano County, CA, it is that people of low to moderate income may be able to buy a home--a prospect that seemed completely beyond their reach even a year ago. In the City of Vallejo we have seen prices drop as much as 70% in some areas in the past two years. When you consider these low priced homes; the current low interest rates on "safe" loans; and the $8,000 tax credit available to first time buyers who purchase during 2009, you can see that we actually have a (sorry) Perfect Storm for entry level buyers.

Some of the rules have changed: you actually have to be prepared to make an up front financial committment to your purchase. But prices have declined enough that you can now use government insured loan programs such as FHA and VA (VA is the GI bill and available to eligible active dutiy and veterans of the US Military). In some cases there may be adjunct programs available such as help with down payment or closing costs, provided by the city or county where you are purchasing.

How can you take advantage of this rare opportunity? First, find a HUD certified Home Buyers Class in your area. These classes are often offered through the Affordable Housing Division of a city or county or by a local non-profit organization. If you cannot find a program on your own contact the Housing Authority in the city where you wish to live and ask them if they can refer you to a class. If that doesn't work, find a Realtor who specializes in working with First Time Buyers of Low to Moderate Income. Not all Realtors work with this very special group of buyers. You require alot more care and feeding than other buyers. We have to keep in mind loan requirements for both you and the property you buy. We have to be aggressive in our efforts to get your offers accepted because you usually need some help from the sellers and you are competing for a more limited number of homes. In short, you need Realtors and lenders who are very knowledgable about special programs for you and who are totally committed to your success as a home owner!!

If you are looking to purchase anywhere in Solano, Napa, Sonoma, Marin, Mendocino or parts of Lake Counties there is a web site that will really help you learn the housing market in your desired area. That site is www.greathomes.org and it is the actual consumer side of the MLS. It is not a lead generator (they won't ask you to register) and it is maintained by the same staff who service the agent side of the MLS so it is updated every 30 minutes. You can also get statistical data from this site.

As of today, everyone I talk to and every talking head on the radio is saying we have probably hit bottom in the housing market in this area.....so if you are sitting on the fence feel free to jump in the pool...it is an exciting time for many of you who never thought you would get this chance to buy a home.

Go for it!!