A new bill was passed by Congress today which will affect Buyers and Seller.
•1. DOWNPAYMENT ASSISTANCE BAN: The bill will remove downpayment assistance (DPA) programs for FHA loans effective September 30, 2008. However, it's not too late! Now is the time to buy! It's time to get under contract before the deadline. Sellers, this means, the only way for a non-veteran borroweRS to get 100% financing is going to be gone in less than 60 days.
•2. INCREASE FHA DOWNPAYMENT: Additionally, the minimum downpayment has increased from 3% to 3.5%.
•3. INCREASE LOAN LIMITS: There was a permanent increase in "CONFORMING LOAN" limits also. The cap use to be $417,000. Mortgage will now be guaranteed up to $625,500 by Fannie Mae and Freddie Mac. This also applies to FHA loan limit caps making it easier to for borrowers in upper price ranges to get mortgages.
•4. NEW HOME BUYER CREDIT: The good news about the bill is that first time homebuyers will now be able to receive a $7500 tax credit up to 10% of a homes purchase (but no more than $7500). The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments.
So what does this mean?
In the Charleston market, one of the biggest obstacles in the current market is financing options for qualified buyers without a downpayment. Quite frankly, there are none unless the buyer qualifies for a VA loan. This mean that time is running out for buyers that might qualify under this program. With the removal of this program, this financing incentive is no longer available reducing options to sellers to attract buyers. It's not too late!
The real estate has serious problems.
You need a realtor with serious solutions.
Call or email the Charleston Relocation Expert if you are ready to purchase a home or need marketing solutions to get your home sold.