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First Time Home Buyers Time is Short
A Window of Opportunity
Like the doors going shut on the small jet James Bond flew at the beginning of one of his films, the window of opportunity to purchase a Tucson home for some is closing quickly. If you qualify for the $8000 first time home buyer tax credit and have put off using it thinking “We’ve still got time” IT IS TIME.
Inventories are headed back down, but more than that, there are restrictions on lending and amounts buyers can borrow now that weren’t a hurdle before.
Yes, there is an $8000 First time home buyer tax credit, but before they can get the credit they have to find a home they can afford and then make the purchase.
There have been a lot of homes sold in the past three months and there are good reasons that Short Sales and Foreclosures are OFF THE TABLE for first time home buyers. Let me explain.
The window for using the $8000 first time home buyer tax credit slams shut on November 30, 2009. This isn’t the date buyer’s have to make an offer by, it is the date they have to close escrow by. Meaning, YOU HAVE TO OWN THE HOME BY NOVEMBER 30, 2009. On December 1st this window is closed.
Gambling on it being extended is gambling with $8000 you don’t have and probably will never get.
There are less than 90 days left before that DROP DEAD DATE. Short Sales require 6 to 9 months to close usually. REO (Foreclosures) don’t require more then the typical 45 days. But here’s the biggie. REO’s are typically sold “As Is” No repairs are going to be made on these homes. Most lenders require homes to be repaired and ready to move in or you won’t get a loan. FHA loans are even more restrictive on what has to be done to a property before they will fund a loan. For all practical purposes for a first time home buyer these two types of properties are now OFF THE TABLE.
What’s left. Homes that are not in Short Sale or REO that are priced in the range where the first time home buyer can get a loan. Many of the homes that were in the price range of $100,000 to $150,000 are gone; they have already been sold. Today there are 272 home in all of Tucson in that price range on the market. This is a very limited selection for a community the size of Tucson.
What about a Condo?
Lending requirements have tightened up considerably for a condo. Twenty percent down is now the standard for loan approval and a FICO score of over 700 in most cases is a must. Most first time home buyers won’t have 20% to put down. Besides, monthly HOA fees on condos can be almost like a second house payment.
The Window of Opportunity is Closing
There isn’t much time left to find a home, make an offer, have it accepted, and close.
We work with first time home buyers, we know how to get you through this process as quickly as possible. It is our goal to help people find and purchase homes. Selling real estate is secondary. I don’t usually even mention our services on this blog. But this is important and time is short. If you need someone to help you find a home in Tucson we are here to help.
