Jim Carey Exton Real Estate

Don't forget to turn your clocks ahead this weekend. With the winter that we have had nationally, that will be a great feeling!

Also, only 50 days left to qualify for the tax credits by having a signed agreement by April 30th. Let me know if I can help with that! 

There have been several recent changes in FHA loans, such as reducing the amount of seller assist that a buyer can get from 6% of the sale price to 3%. For information on other changes, please contact me. 

There have been several recent changes in FHA loan requirements:

Mortgage insurance has been increased from 1.75% to 2.25%. This will not have a huge effect since it is over the life of the loan.

Downpayment required: 3.5% with a credit score above 580, 10% with a credit score below 580

Seller assist: maximum of 3% of sale price vs. previous 6% 

Townhouse for sale in Marsh Harbour for $259,900. See my home page for pictures and more details. Located in the Downingtown School District, near the Village of Eagle and Marsh Creek Park. Great value in a desireable developement. Very close to Pennsylvania Turnpike and Exton shopping.

I hope you and your family have a Happy, Healthy and Prosperous New Year! Remember that the tax credits for First Time Buyers and current homeowners require that you be under contract by April 30th and settle by June 30th. There should be an increase in listings after the first of the year as current homeowners put their home on the market in an attempt to get the tax credit. Most of these will be condos and townhouses that owners want to sell in order to move up to a single family home. 

For first time home buyers, there has never been a better time to buy. Right now, every single factor that can be helpful in getting a "good deal" are in place.

- mortgage rates are at an all time low, staying between 4.6% and 4.85%

- lots of homes have been reduced in price so that we are at 2003 prices

- sellers are desperate to make a deal since there home has been on the market a long time and they are feeling pressure

- last but not least, there is an $8,000 tax credit available until April 30th (must be under contract by then, have until June 30th to settle  

It is estimated that 1 in 4 homeowners is underwater with their mortgage - their home is worth less than the mortgage amouont. This may cause more homeowners to go into foreclosure, which would further reduce home prices. We'lll just have to wait and see if that happens, but if you plan to purchase a home prior to April 30th to take advantage of one of the tax credits, you will have a decision to make in the next few months.

All of the ingredients are in place to make this the best time to buy a home.

Home prices have hit bottom, according to most experts.

Interest rates are at 5.125% - an all-time low.

Sellers are desperate and willing to negotiate prices even lower.

Credits are available for first time buyers ($8,000) and current homeowners who have lived in their home for 5 consecutive years out of the past 8 years.

If you are in a position to buy now, especially if you don't have to sell a home, this is the time to do it!