Illinois First Time Home Buyers Have Their Best Chance to Buy a Home Now- But it Won’t Last Long

Dec. 28, 2009 - PRLog -- As we head into the New Year, the beginning of 2010 may be the best time in years for first time home buyers to buy their first home.  The beginning of the year is traditionally the time when first time home buyers first dip their toes into the market, as their tax return refunds are often the source of their down payments. With some unique factors in the market this year, there is a real urgency among first time home buyers to start the home search early this year.

As a lender specializing in Chicago Illinois mortgage loans, here are four reasons why this will be a fast start to the housing market as first time home buyers rush to take advantage of the best time to buy in years:

Mortgage interest rates are at historic lows, but they may be going up soon - The Federal Reserve Bank (the Fed) has kept mortgage rates low over the last year by buying mortgage backed securities – over a trillion dollars worth so far. They are stopping the program after the first quarter this year. When that happens (or before) experts say that mortgage rates will move higher.

Homes are available at bargain prices - There is a large supply of homes available and prices are much lower than at any time in the past years. Part of the supply is made up of foreclosed and short sale homes where the banks are motivated to sell, often at big discounts.

Low down payment mortgage programs are available now, but the guidelines may be tightening soon -  You can still buy with a 3.5% down FHA mortgage (the best first time home buyer loan), but there is now pressure to change the program and raise the down payment up to 5%. Many buyers are expected to act now before the guidelines change again.

The First time home buyer tax credit expires at the end of April - The first time home buyer tax credit has been extended for purchases under contract up through April 30th 2010. The first time home buyers have up until the end of June to secure financing and close on their homes. Qualified buyers can get a tax credit up to $8,000 after closing, a real incentive to buy now.

In order to take advantage of this opportunity, they will need to be ready to act soon. By the end of April the tax credit will be gone, rates are likely to be higher and, you may need a higher down payment in order to secure a Chicago Illinois mortgage loan. This is looking like the best time to buy for years to come. Take advantage of it while you can.  

Pete Thompson is a long time resident of the Chicago area, and has been a mortgage loan officer specializing in helping first-time home buyers since 1992.
You can contact him from website http://www.ptmortgage.com/blog/


Current Mortgage Rates :

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First Time Home Buyers Guide

Are You Planning to Buy a Home This Year? Know What to Expect, and Save Money by Taking Advantage of the New Changes in Mortgage Qualification. Download First Time Home Buyers Guide from http://www.ptmortgage.com/rwhg.html

Our Mortgage Loan services :

Conventional mortgages
FHA Mortgages
FHA 203K Rehab Loans
VA Mortgages
Jumbo Mortgages
First time home buyers

Contact Person : Peter Thompson
Direct: (630) 598-2375
Cell: (630) 479-6424
Fax: (630) 929-9787

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About PT Mortgage Group : Mortgage Loan Company specializing in helping first-time home buyers since 1992.