Why Now?

Greater Reading and Berks County: A great place to live, work and play.

It’s a buyer’s market with abundant choices of homes in Berks and historically low mortgage rates, according to data from the National Association of Realtors. Berks home appreciation values have risen steadily over the years, versus fluctuations of other areas of the U.S.

Mortgage rates are attractive.
Mortgage rates are near a forty year low. Sellers are motivated, inventory is high, and now – as always – owning a home is a great investment.

Waiting could cost you money.
According to Dan Kadlec in Time_Magazine, if you have good credit, plan to stay put for five years and have been waiting for the perfect entry point, it’s time to get serious before an inevitable rise in interest rates wipes out your advantage. Anything you expect to gain by a further drop in prices might be offset by rising financing costs.

There’s more help for first-time buyers.

*UPDATED* 6/09/09: As of 5/29, the First Time Home Buyer Tax Credit can now be used at the settlement table! FHA-approved lenders will now be able to develop bridge-loan products that enable first-time home buyers to use the tax credit upfront, according to the U.S. Department of Housing and Urban Development. Home buyers can use the bridge loans to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

To learn more about the basics of the tax credit,
click on any of the following links:

• National Association of REALTORS® Press Release
• U.S. Dept of Housing & Urban Development Statement
• First Time Home Buyer Tax Credit Loan Programs
• How to Obtain the Tax Credit
• IRS Form 5405 (needed to claim credit)

First-time house buyers should benefit as FHA loans are set to increase in volume, according to the NAR. That’s important because when the FHA insures the loan, your lender can extend a better deal—offering low down payments, low closing costs and easier credit qualification. As a result, the FHA market share for home purchases is expected to triple over the next four years from an estimated 4% in 2007 to an estimated 12% in 2009.