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The House Will Rise Again
Out of the ashes arose the Phoenix,
From the unrealistic heights aspired He,
Out of the ashes of the much despis-ed toxic loan,
Will the almighty lender once again say, “apply with me”...
Realistically, there is so much trepidation in the current global economic picture, that unless your creditworthiness can be established based on good old-fashioned qualifications (debt to income, yearly income, loan to value, credit score, etc.) your chances of buying a home are still challenging. “You’re putting down 50% of the purchase price on the house? Okay, then we’ll take that into consideration.” Not really necessary, more like a balance of something reasonable between large down payments and “no money down” in the very near future will exist.
Mark my words, when all of the dust settles, the homes ultimately destined to return to the banks will have done so, the savvy investors will have been able to pick up “the deals and the steals” that turn out to be great rental properties, and the effects of the American Recovery and Reinvestment Act signed into law with part of the proceeds being used to stem the tide of foreclosures (check out some details here) will pull many out of the funk. As a matter of fact, for those of you who are interested in where, exactly all of the money (our tax dollars) is to be distributed, the Federal government has put out a very nice web-site at http://www.recovery.gov/ to help you see for yourself. There are too many programs and incentives to lay out in this blog format. The biggest stimulus most of you are aware of would be the $8,000 tax credit for first-time homebuyers (and whoever hasn’t owned a home in the last 3 years) until December 1, 2009. NOT the 31st. That is substantially better than just a deduction - this is real money given when you do your taxes next year - by the Government for buying a home. Talk with your Accountant. There are some nice programs out there, such as VHDA products that are currently offering loans with very little down payment, rates at close to 5% and for fixed terms. These and other programs won't pull this world immediately out of the situation many find themselves in, rather, they help to lay the foundation for eventual, long-term recovery.
The house has always been seen as a “wise investment.” It is a home for a new family, a nest egg for the empty nesters, a place to hang your hat, your sacred retreat from the hustle and bustle of daily life, your “castle.” NAR will always be able to provide countless positives for home-ownership. To the people who say rental is the way to live...perhaps you might say that now. Maybe it is. Maybe it isn’t. Timing is everything. Perhaps in 20 years you might reconsider your position. Maybe you won’t. Still, for many people, it will always be nice to call something one has earned one’s own.
The house will indeed rise again, albeit perhaps a bit smaller, environmentally friendly (green) and fiscally responsible for the owner next time.
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