In any economy at any time $8,000 is a lot of money. To be guaranteed by the U. S. Government that you could have a credit of up to $8,000 if you were to buy a home in the next 8 months is more than enough incentive to send first time-home home buyers ( that is a qualification) into the market place looking for homes.
Mortgage Interest Rates are very, very low - home prices are extremely low. Securing a mortgage loan and purchasing a home at this opportune time is a must-do for tens if not hundreds of thousands across America.
Adding their lot to the mix are certain members of the Real Estate Industry, who have obviously taken a page from the playbook of the auto industry. More incentives for the potential home buyer - how about not having to worry about mortgage payments for 6 months if you or your spouse were to lose your jobs.
According to a report by Diana Golobay carried two days ago on Housingwire.com "the California Association of Realtors (CAR) announced late last week it would offer a new "mortgage protection program" that promises first-time home buyers .....the guarantee of up to $1,500 per month for six months, in the event of job loss due to layoffs." The report goes on to inform that " ...co-buyers get up to $750 per month for up to six months, in case of layoffs. The program also includes benefits for accidental disability as well as a $10,000 death benefit, CAR said."
With these additional incentives now available at the back end of a mortgage loan, home buyers, on the front end, can take advantage of the $8,000 income tax credit, and easily slide into a new home loan knowing there is a cushion, at the other end, to ease their pain if they should fall. Yet, it is a good thing as it could remove from the marketplace the abundance of foreclosed homes that are out there - that's on the front end, while providing a mechanism for slowing the emergence of new foreclosed homes into the marketplace - this is on the back end - you with me?
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