This does not mean the industry is not still viable in the DC metro area. The Federal Housing Administration is spearheading the recovery of the real estate industry. The numerous programs are geared to stimulate the industry itself.
“Many potential home buyers should at least consider FHA with their low interest rates that are currently in place,” said TJ Noye, Precision Funding.
A mortgage rate is not the only reason why many potential first-time home buyers should consider purchasing a home. Pillar Property Group would like to take the time to explain:
• Federal mortgage support programs will end. Currently, the Federal Reserve 1.25 trillion programs to purchase mortgage-backed securities are scheduled to end next month, March 31. Many reality experts are predicting a moderate increase in interest rates to follow. So, March will be a prime time for first-time home buyers. Also, it would be a good time for property investors to diversify their financial portfolios.
• Homebuyer tax incentives will expire April 30. Another prime time for the first-time home buyer who is consider purchasing their first home. This coupled with the FHA low interest rates should be very attractive to first time home buyers.
• There is no doubt foreclosures’
• The U.S. Housing and Urban Development (HUD) is developing new programs that look promising for investors to establish growth in the real estate market. These programs include:
1. House over 2.3 million families in public and assisted housing (over 58 percent elderly or disabled). Good news for the investor. This demographic population has a recession proof income.
2. Provide voucher assistance to 78,000 additional families (over 47 percent elderly or disabled). Again, great news for the investor. Guaranteed money from this group.
3. More than double the annual rate at which HUD assistance creates new permanent supportive housing for the homeless. This will stimulate growth within communities.
4. Create and retain 112,000 jobs through the department’s housing and economic development investments in communities across the country. Good news for investors as well. If a community is thriving, there will be renters looking to reside in those communities.
“2010 is the year of rebuilding in the real estate industry. There is much opportunity for the investor and first-time home buyer with the various national and local incentives to stimulate the industry,” said Ian Johnson, Pillar Property Group.
First-time home buyers should no longer just consider traditional lending institutions when considering their first-time home buying purchase. There are many independent licensed professionals such as those at Precision Funding who have resources outside traditional institutions enabling home ownership for many consumers.
For more information about properties in MD, DC and VA, please contact Pillar Property Group.