| Financing is available to get borrowers into | | | | per year. One positive thing that has come out of the |
| bank-owned properties. Even though there is not the | | | | real estate market crash is that prices have come |
| wide variety of mortgage products that were around | | | | back down to where people who could not afford to |
| a few years ago, prospective home-buyers can get | | | | buy three years ago can now afford to purchase a |
| loans thru FHA, VA and of course, conventioanl | | | | home. They are now looking at an affordable price |
| means. Yes, if you are an independent contractor and | | | | range for the type and size of house they need. |
| cannot show a W-2 that you get from your employer, | | | | These people are still interested in buying and want to |
| it's much more difficult to find somebody to finance | | | | buy. Today, there are houses that have lost 50% or |
| you, but it can be done. If you have the right person | | | | more in value and the industry has never before seen |
| helping you and have steady income, pay your bills in a | | | | such dramatic percentage drops. Another plus for |
| timely manner, and if your debt ratio is reasonable, you | | | | home buyers is that interest rates continue to remain |
| can get a loan to buy a house. The areas that present | | | | low, nothing like back in the early 1980's where they |
| more of a challenge are the higher priced areas where | | | | were as high as 19%. For most, it was very difficult |
| VA and FHA financing is topped out. This would at the | | | | back then to sell a home (unless they used seller |
| $700,000 level and higher. Jumbo loans are still difficult | | | | financing which was plentiful) because the rates were |
| to locate. But the other markets are still very active. | | | | so high and nobody could afford financing. Many |
| Opportunities at the local level still exist to buy homes. | | | | products that we are familiar with today, originated |
| Rehab loans enable borrowers to take a home that | | | | back then because no one could afford to get a 19% |
| needs work and do their own repairs. FHA 203(k) | | | | fixed-rate loan. The mortgage industry changes every |
| loans permit a buyer to purchase a house and | | | | year and no matter how long you have been in it, |
| establish an escrow with the money they need to fix it | | | | there are things that are new and quite exciting, |
| up the way they want. This is very exciting because | | | | especially the technology. More and more people are |
| you can get a great deal, have a house that is nice | | | | shopping for their homes on the internet. It may take 5, |
| and it's fixed up the way you want it, financed, all in | | | | 10, 15 years or even longer for the prices to rebound |
| one package. Many are waiting for the foreclosure | | | | to reasonable market levels and now is the perfect |
| pipeline to open during the second and third quarters of | | | | time for consumers to begin looking. For those looking |
| 2010. Some areas in the United States still need to see | | | | for a good home loan, they should educate |
| further value decline before foreclosures go through | | | | themselves to work with an agent and understand |
| the pipeline and the overall housing market picks up, | | | | what the market is so they can get a good buy on a |
| putting more REO properties back on the market. At | | | | property and not waste their time throwing out |
| that point, prices for properties all over the nation will | | | | rediculous low-ball offers that end up not getting |
| get back in the situation where they are increasing, not | | | | accepted while somebody else scoops up the home |
| at the levels created in the bubble, but at traditional | | | | they wanted by somebody who came in with a more |
| levels where you have a 2%, 3% and 4% appreciation | | | | reasonable offer. |