byronslist.com

I know it is a cliche, but, it is a really great time to buy! Let me give you a few good reasons on why this rarely used phrase in real estate (laying on the sarcasm here...pretty thick), is actually true these days.

For one thing prices are over 20% lower than they were in May 2006 according to a Wall Street Journal article written yesterday. While people still debate over where the "bottom" of the market is, this agents crystal ball is in the shop right now, so I can't say. Sorry.....ok it's a cop out! FINE! I do think with prices hovering around where they have been for the last few months, things look good for the buyer in Chicago today, even if they drop a little more in the months ahead. However, if you have been on the fence, a couple of even more compelling programs have come along out there to help you buy a home.

One of the options out there, for those of us who don't have that extra 40 or 60,000 dollars rolling around the cushions of the couch, is an FHA Loan. This is not necessarily a new program, it was just not really necessary in the wild wild west days of home mortgages. Gone are the days of putting no money down on a property (thank goodness), but you can still find mortgages for 10% down. For those of you who can't quite swing that, an FHA loan might be the way to go. With an FHA loan, you only need to have 3.5% down and a credit score above 620. You would have to pay the PMI on 16.5% of the purchase price though. A mortgage lender would be able to help you with these approximate numbers, and you should be in contact with one before you even start looking at properties anyway. Talking to a lender is free by the way (don't let them tell you different, if they do...hang up), so go for it. If nothing else you will learn your credit score. FHA loans do come with some other strings attached, like more stringent home appraisals on the sellers home, and many Chicago Condo Associations do not qualify for FHA loans. But, it is a good option for people with the means to buy a home, but not the cash for a down payment.

The other great program out there right now, and only until December 1st of this year, is the government 2009 First-Time Homebuyer Tax Credit. What is terrific about it is that you can claim the tax credit on your 2008 tax return, even if you have already filed! You just need to fill out an amendment form to your 2008 taxes. So if you owed $8000 on your taxes last year and you bought a home within the time frame of this credit, you will owe $0 and an $8000 check is coming your way (if you paid the liability already through deductions...etc). "When do I have to pay that back?", you ask. The time frame set by the government asked that you pay it back NEVER! Which is nice. Oh, "first time" home buyers are defined as someone who has not owned a home in last three years, so if you have been out of the market for a while you can qualify for the credit.

So maybe it really IS a good time to buy.