Mortgage rates are still low. And, as the latest reports indicate, the housing market is worried about how this spring’s market will unfold, in that prices are soft and demand…who knows yet?
Is this a set-up for a resurgence of first-time buyers?
First-timers are facing a fresh raft of barriers:
- Lenders are demanding higher down payments
- Condo deals can be shaky, if the building has too many rentals. (Too many rentals complicate lending through Fannie Mae and Freddie Mac.)
- 10% of house deals (or more) fall apart because the appraisal comes in too low
- Cash buyers – i.e., investors – dominate in many markets. First-time buyers can’t trump a cash offer
But, first-timers also have a surprising advantage: many municipalities have put into place temporary programs to incent first-time buyers to make the move this year. We’ve noticed such programs in Florida, Georgia, and North Carolina. To find a program in your state or city, Google “first time buyer” + program + [your city or state]. The results should flush out any relevant programs.
Don’t overlook live-near-work programs sponsored by your employer, either. And to get the big picture and the details about buying your first house at the ForSaleByOwner.com First-time Buyer’s Guide.
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