Buyers Reports

President Bush has signed a funding bill for the Department of Housing and Urban Development that gives life to a housing program first proposed by then candidate Bush during the 2000 campaign. The measure also authorizes the Federal Housing Administration (FHA) to begin backing hybrid adjustable rate mortgages and increases the loan ceiling on FHA-insured multi-family mortgages. Under the "American Dream Down Payment Assistance" program, Uncle Sam would match $3 for every $1 contributed by a bank or other private lending institution or individual towards a down payment, closing costs or a "soft" second mortgage that need not be paid back as long as the borrower meets certain conditions. The appropriations bill earmarks $50 million for the program, enough by Administration estimates to get 30,000 potential buyers over the hump and on their way towards home ownership. Assistance of up to $1,500 would be available to first-time buyers with incomes at or below 80 percent of the median for their areas…

If you've been waiting to get through the holidays and closer to warmer weather before beginning the search to buy your first home, you're not alone. The traditionally busy spring real estate season is just around the corner, meaning heavy competition looms. But there are things you can do as a potential homebuyer to get a head start. The number of home sales in 2002 shattered records with 5.56 million existing and 979,000 new homes sold throughout the country, according to National Association of Realtors chief economist David Lereah…

There is no guarantee that real estate will continue to escalate in value as it has been doing over these past few years. Just ask anyone who purchased at the peak of the real estate market in the late l980's. Many owners found that their mortgage was greater than the depreciated value of their house, and it was not until the mid l990's that they were back in the black. How would you feel if you purchased a condominium unit today for $275,000, obtained a mortgage for $247,500 (i.e. 90 percent loan to value), and suddenly your unit was only worth $245,000? Make no mistake: while I unconditionally encourage everyone to be a homeowner, it may not be your greatest investment. Having dampened your enthusiasm, let's now turn to the other part of your question…

Yearning for a brand, spanking new home but don't have any cash for a down payment? That may no longer be a problem under a new "strategic partnership" announced recently between the Nehemiah Corp. and the Homebuilders Financial Network. Under the terms of the alliance, Nehemiah will offer down payment assistance to cash-starved buyers who have their eyes on houses built by any of the 20 builders throughout the nation whose in-house mortgage operations are run by HFN…

If you're close to buying a home in the coming year, then you'll want to keep a close eye on your holiday spending. You don't want to hamper your chances of getting a loan, and you'll want to be sure you have plenty of cash on hand in your first year of homeownership. The International Mass Retail Association in a late October survey estimated that holiday shoppers will spend an average of $863 on gifts this year. However, they ultimately end up spending some 15 to 30 percent more, the association says. Because your credit history is so important in obtaining a loan, you'll want to refrain from opening any credit accounts for major appliance or electronic purchases. You'll also want to avoid running your existing credit cards to their limits. Why? When you apply for a mortgage, the lender may request a credit score as well as a credit report…

Thinking about a second home? In 2001, nearly 6 percent of the record 6.2 million sales of single-family homes were of second homes. According to the most recent data, there were 3.6 million vacant seasonal homes in the third quarter of 2002, up from 3.1 million in 1990 and only 1.7 million in 1980, the U.S. Census Bureau said. "That category often is cited as the total number of vacation homes," David Lereah, chief economist of the National Association of Realtors, says. "However, we believe that assumption misses many recreational properties that are not vacant." Other census data show there are 9.2 million homes held by owners in addition to their primary residences…

A couple have been looking for the right house to buy for the last year or so. Property values have skyrocketed so we have been searching for well-priced "handyman specials", figuring we could buy at a good price and make improvements ourselves, over time. They found the perfect house in a great neighborhood for $230,000…