The Worst of Times is the Best of Times

The Worst of Times is the Best of Times: How today is the best time to buy a home

Today's home buying market is the hardest it's been in years. Mortgage loan programs have dried up. No-down-payment programs, 80/20 loans ,and mycommunity 100% loans are all things of the past. Down payment requirements have skyrocketed to 10%. And credit scores are more important than ever; the days of easy credit are gone.

But to paraphrase Dickens, if now's the worst of times it's also in many ways the best of times: with record low interest rates, plummeting house prices, and even government $8,000 incentives for first time buyers, now may actually be the best time ever for buying a home.

Also, though conventional loans have disappeared, there are still plenty of other loan programs available for down payments. These include: USDA loans, Utah Housing Corporation Loans (for low-to-moderate income housebuyers), the VA loan, (for veterans and surviving spouses who do not remarry), and loans available throughout rural Utah, including: Saratoga springs, Eagle Mountain, Tooele, and most of Utah (with the exception of Salt Lake, Davis, and Weber counties, and parts of Washington and Cache counties). Basically, if your customers are low-to-mid income, a vet, or looking to live rural, there are still numerous options available to help them with their down-payment loans.

More good news is that FHA loans have hardly budged at all, increasing from only 3% to 3.5%-as opposed to the 10% down payments required of conventional loans, saving customers thousands of dollars. FHA loans also have lower credit score requirements, making them more attractive in today's economy.

Making loans even easier, the FHA also allows the down payment money to come from multiple different sources.

For instance, a secured loan is now an acceptable source for an FHA down payment loan. For example, a customer's car could be a source of down payment money: any large asset item, such as a car, or truck, or boat, that can get a secured loan placed on it, could be used to generate the loan money for an FHA down payment.

Tax refunds, 401ks, even saleable assets, could all be acceptable sources for down payment money in an FHA loan, sources that customers couldn't get away with in other, more conventional loans.

Other acceptable sources for an FHA down-payment include:

Sale of Assets

Tax Refund

Inheritance

Loan from 401k or other retirement savings account

Employer assistance plans (an employer may pay part or all of the required down payment)

Real estate agent's commission

A gift from a family member, relative, close friend, or domestic partner

Gift of Equity (Relatives may provide equity credit as a gift on a property being sold to other family members)

Gambling or Lottery Winnings (must be documented)

Lawsuit or insurance settlement

Rent Credit