Real Estate is still one of the best investments to have. Even in a down market like we are in today. No one knows when the prices of homes will start to rise, but they will.  Those who have a chance to buy now will have the property increase in value in the future. Real estate, sort of has a 5 year roller coaster effect, much like any large business.  In 2006, the real state market was at it’s peak and then the decline started. We are at the midway point of this cycle. Currently we are still in a buyer’s market due to the amount of homes on the market. In my last article, RMLS showed a decline in the months of inventory  from 19.2 in January to 7.6 in September,  2009. In October it fell to 6.5.  Now is the time to consider owning a home.

A lot of folks don’t  know they have the ability to take from their 401K, without penalty, to purchase a first time primary residence. The IRS gives us permission to do it. The first time home buyer’s tax credits still apply. So, if you know of someone who has the means of paying a monthly mortgage, but they don’t have enough for a down payment, share this information with them. Thanks, they will appreciate it.

There are numerous folks out there who have the monthly means to afford a home mortgage. Sometimes the ability to save enough money for the down payment and what is called closing costs ,which could amount to over$14,000 for a $200,000 home, can be tough to accomplished. Do not let this hinder your quest for home ownership!  Here are two programs that will help with either, or both, down payment assistance and closing costs.

Rural Development Program: www.rurdev.usda.gov. This  programs provides up to 100%  financing  on loans originated by approved lenders. The program eliminates the need of a down payment and mortgage insurance on properties located in eligible rural areas. There is a household income limit in these areas.  Go to the above website to find out more information, or call a realtor to get you started. Home ownership could be within your reach.

C.H.A.P. Clackamas Home Buyer Assistance Program: www.co.clackamas.or.us. the CHAP program can loan up to $14,000 to help qualified first time home buyers pay down payments and closing costs. The loan must first qualify through an approved lender. Please go to the above website or call a realtor to find out if this could be right for you.

Both of these programs allow for the first time home buyer tax credit of $8000.00 So get started or tell someone that you  know that could possibly benefit from this information. Happy house hunting!