Real Estate and Investment in Today's Market, Is it really a Good Time to Buy?

It is definitely a question of concern that many South Floridians and even International visitors are asking and considering but few are answering. Although 'Flipping Properties' was the thing to do 5 years back, we all know better than to think it would be your best option today. With loan programs and Government aid like FHA and HomePath properties, the better investment in today's market is undeniably the purchasing of a Primary Home for those who have yet to become Home Owners and were not financially tainted by the wave of foreclosures. Another option is the purchasing of a Secondary or Investment property for the sake of Renting as an additional form of income.

However, even with mortgage rates reaching an all time low today at 4.69% to entice buyers and the sale of listed properties; there are many who are still reluctant to buy and are concerned about whether to hold-back on purchasing in hopes that they will be getting a better deal in a few more months.

I find that many home buyers ask me the same question: "Is the market going to keep losing value? Are the prices of homes going to go lower?," in trying to get the best 'Bang for their Buck'. However, in holding-out, they are not taking into account the complexity of the situation that has yet to occur.

Regarding existing Adjustable Rate Mortgages (ARMs) originated during the Boom, economists are anticipating yet another wave of foreclosures that will affect the market once again, creating a greater severity of consequences to not only the lenders, but current home owners as well. This wave will eventually drive current market values down further to what is estimated to be a 10-20%, causing more than 25 Million Home Owners to be 'Underwater,' meaning they will owe more than their homes are worth. Currently, the number of home owners that are underwater is estimated at 13.5 Million, of which less than 10% might qualify for loan modification. Many of these owners will walk away from their mortgages, possibly causing yet another wave that will continue to plague the market. This will therefore increase mortgage defaults which will eventually make it even more difficult for new home buyers to qualify for financing under the market's economic circumstances.

Now, when compared to the recent Real Estate Boom market values of '05 and '06, any property listed in today's market is a steal. (I'm sure that lenders who are flooded with foreclosure deficiencies and setting their REO listing prices slightly lower to generate multiple offers for a better price would agree.) However, what home buyers need to understand is that the Bank Owned Properties (REOs) and Pre-foreclosure (Short Sale) listing prices are typically set at the current market values of South Florida homes, which are the lowest they have been in three decades. What this means is exactly what you hear virtually everywhere now-a-days, and that is:

"It is a Great Time to Buy."

There are more Homes on the market, making them more affordable and thereby creating a Buyers Market. Now is the time for buyers to take advantage of the situation before many lose the opportunity or chance of owning their own home before the market endures further economic hardship, thereby making it more difficult to own later on down the road. So for those who continue waiting, what are you really waiting for?

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FHA

Are you one of the many who think that FHA insured loans only apply to buyers with low-incomes or low-cost properties loans? Well, think again! More and more people are pre-qualifying for FHA government insured loans and are being afforded the chance to own property daily!

FHA may be helpful for:

1. First-time Home Buyers
2. Property Flipping
3. Seniors Age 62+ (FHA Reverse Mortgages)
4. Energy Efficient Costs
5. Manufactured Housing and Mobile Homes

Therefore, FHA properties can offer pre-qualifers loans with:

1. As low as 3.5% Down Payments for Primary Residences; 96.5% Loan insured
2. Low Credit Score Approvals
3. 55% Debt Ratio Approvals
4. Low Closing Costs, 6% Seller Concessions (In process of changing to only 3%)

FACTORS YOU MAY NOT HAVE KNOWN ABOUT FHA PRE-QUALIFICATION/APPROVAL:

1. The Maximum Loan Amount covered in Miami-Dade County by FHA is $423,750! ( Making it by no means a low-cost property loan!)
2. First-time Home Buyers may be awarded financial aid!
3. Credit Scores as low as 580 to 620 have been approved for FHA loans!
4. You need not be a citizen of the United States! Legal Residents with a Social Security Number, Valid Visa and Credit Score can QUALIFY!
5. Full amounts, including down payments, reserves and closing COSTS CAN BE GIFTS!! Non-occupant co-borrowers can contribute all costs!
6. The minimum steady Employment History requirement is ONLY 2 years with a 90 day gap and need not be the same employer!

Finally convinced you can pre-qualify for a mortgage? Are you ready to take the necessary steps towards owning your own home?

I have the Tools to find FHA approved Single Family Homes, Condominium and Townhouse Complex in ALL of Dade and Broward!!!

Contact me today to find out which properties are FHA approved and be closer to owning your OWN home!

Jessica Castillo
Cellular: 786.537.4714
Email: jessica.castillo@century21.com

Century 21 Premier Elite Realty
375 Miracle Mile
Coral Gables, FL 33134
Tel: 305.442.2122
Fax: 305.442.2180
Website:PremierMiami.com

This is your opportunity to own the property you have always wanted!!



FHA Links

• What is FHA?

http://www.hud.gov/offices/hsg/fhahistory.cfm

http://portal.hud.gov/portal/page/portal/HUD/federal_housing_administration

• HUD in Florida

http://portal.hud.gov/portal/page/portal/HUD/states/florida