Many local and state agencies run bond programs to generate funds to help individuals and families with a down payment. Contrary to public thinking, these bond issues are not a type of welfare. The government knows that it can be tough to buy that first home, especially on a limited income.
Most agencies are income sensitive, but you may be surprised by the high level of acceptable income. The income level is especially high if you have children or dependents. Most agencies also have purchase limits, but they are adjusted to the income qualifications level.
If you are able to obtain down payment assistance, you may receive a lower interest rate. The drawback is that it often takes quite a bit of work with extra paperwork and mandatory education classes. Our advice, find a Realtor or mortgage professional who is familiar with both the local and state agencies and their policies.
So, Citibank needs no more capital injections, GM has enough money, the major banks are profitable and consumer spending on the rise... Well, it's a start. There's still a lot of toxicity in the system, but this week has brought more news that's positive than negative for the first time in a very long time.
The question is "Is this a fluke, or is it an uptrend" or sign of the bottom?
Cramer seems to think this rally may last on Wall Street and while real estate is still beaten, it may find some positive momentum too.
In our market - Summerville SC average values were up - Charleston down a little, but overall flat. That's a good sign!
Don't forget to tune into my radio show on 1250am, WTMA Radio in Charleston, Saturday morning at 8am. Also, live on WTMA.com. This week, we discuss Dr. Doom, common market problems facing buyers and sellers and we have Jeff Doss from Bradford Mortgage on the show.
You can listen to our past shows on our website. Click here.
HOUSEDOG.COM.
U.S. mortgage applications rose for the first time in three weeks as near record low interest rates spurred demand for home refinancing and purchase loans, data from an industry group showed on Wednesday.
The jump in demand came several weeks after the unveiling of the strongest government action yet to aid homeowners since the housing market's meltdown began and may help gauge what is in store this spring, the peak home-buying season.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended March 6 increased 11.3 percent to 723.4.
U.S. President Obama last month announced the Homeowner Affordability and Stability Plan, which is designed to provide much-needed support to the housing market.
The goals of the housing plan are to support refinancing for good quality borrowers; help distressed borrowers avoid foreclosure; and stimulate new housing demand through the expansion of Fannie Mae and Freddie Mac, the top two U.S. home funding companies.
Mark Goldman, lecturer of real estate at San Diego State University, said interest rates on mortgages are at enticing levels that could lift demand in the months ahead.
"It does not really matter if interest rates on mortgages move up one week or move down another, they are still at historically low levels," he said.
"What is important right now is that home affordability has improved and low interest rates help more people afford to buy a home," he said.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.96 percent, down 0.18 percentage point from the previous week and the second lowest rate since the weekly MBA survey began in 1990.
Nearly a third of U.S. consumers feel it will be a year before their families are better off than they are today, and more than a quarter think it will take longer, according to a retail survey on behalf of Reuters.
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Findings from the survey by America's Research Group released on Tuesday pointed to tough times ahead for U.S. retailers, who have their seen their sales plummet as shoppers have cut back on all but the most essential purchases.
The telephone poll asked 1,000 adult U.S. consumers a series of questions provided by Reuters. Their answers reflected the current "retail free-fall" pervading the industry, said Britt Beemer, founder and CEO of the group.
"We're looking at a retail meltdown much worse than anyone could have imagined six months ago," Beemer said.
According to the data, U.S. consumers are pessimistic about the current economic environment and do not expect any improvement in 2009.
"We're looking at the fact that most people don't think they'll see an improvement until the summer of 2010," Beemer said. "That's a while."
Bryan Crabtree is The Lowcountry's Real Estate Expert - in Mount Pleasant/Charleston, SC. For the last decade, Bryan has brokered thousands of sales. Hear Bryan 8am each Sat. on 1250 AM WTMA.
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