Is it Perfect Timing?
I am so often asked by buyers and sellers how I feel about the market. Is now really a good time to buy—or sell? The answer I usually give is, “it depends.” This is not a cop-out, as people who know me, know that I am always truthful in my responses and advice. It truly does depend on what your objectives are. For some sellers, who owe about as much as their home is worth, the answer would be, if you can, wait. You can rent it for now, or you can just sit tight until the market adjusts more favorably (in two to five years) If you cannot afford the mortgage payments, then that is a whole different ball of wax. (though talk to me, there are still options)
If you would like to buy a home now, while the prices are at historical lows, though you don’t have 20% as a down payment for a conventional loan, there are other options for buying too! FHA loans require 3 1/2 % down, and a credit score of 630, and the interest rate is very comparable to conventional loan interest rates. Awesome opportunity! In Colorado, CHFA, Colorado Housing Finance Agency allows you to put $1000 down with a 580 credit score (with some income limitations).
I just sold a home to newlyweds, buying their first home. They got a CHFA loan, put down $1000 and their payments are less than what their monthly rent was. AND—they get to claim the interest deduction on their taxes and have a home to call their own! And when the market improves, and they want to sell in five years or so, they will be realizing a return on their investment. What a deal!
So you can see—it really depends!
