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Don't Miss Out!      The Window of Opportunity is Closing!!      The Time to Buy is Now!!!

With the media pounding us with headlines that scream "real estate meltdown" and "credit crisis", many Americans are left thinking there is no way in today's economy to buy a new home. But actually, nothing could be further from the truth. As in any crisis situation, bad news for some can lead to good news for others. And there is good news, especially for first time homebuyers who are now in an unprecedented position to leap into homeownership.

There really hasn't been a time in US history where there were so many incentives to buy a first home. Homes have never been more affordable than they are today. Consider these pieces of good news if you are considering purchasing a new home in DC or the surrounding area:

 1. There is still time to take advantage of the First Time Home Buyer Tax Credit which if you qualify can put up to $8,000 in your pocket! This is free money from the government just for buying your new home before the deadline, helping stimulate the US economy.

But the time to get going is now. By acting now you still have the time to contact an expert Realtor® and start looking for your new home because you must close before Dec.1, 2009 to take advantage of this outstanding offer. So, you should plan on finding your new home and signing a contract no later than Oct. 15, 2009 to allow enough time for processing in order to close on your new home before the Dec. 1, 2009 deadline.

Lenders are expected to be swamped as the deadline nears. So don't run the risk of losing your tax credit because you waited too long. Because time is running short, you will want to get going, so contact DC area expert Rachel Valentino today!

2. Government Incentives at an All Time High Leading to Lower Cash Requirements to Close. Up until now, one of the biggest things holding up first time home buyers is that they still need to come up with the down payment, closing and other related costs. In today's economy, for the average couple or individual, saving up the down payment alone can be a discouraging task. 

But now for the first time, the first time home buyer tax credit can be used for a down payment for qualified individuals. Link to Official HUD Press Release.

Shaun Donovan, secretary of HUD (Dept. of Housing & Urban Development), has said that the FHA (Federal Housing Association) will now permit it's lenders to allow homeowners to use the $8,000 tax credit as a down payment.

According to Donovan, the FHA's approved lenders will be permitted to monetize the tax credit through short-term loans. These second loans are available for little or no interest and may be repaid with the homebuyer tax credit.

This allows borrowers using FHA-approved lenders to apply the tax credit to their down payment in excess of 3.% of appraised value or their closing costs, which can help achieve a lower interest rate. There are also ways obtain the money from a state housing authority or qualified non-profit that might help you buy the home with even less down or maybe even with no down payment.  To read the FHA's new mortgagee letter, visit HUD's website. You can also contact DC's real estate expert Rachel Valentino to explain and help you fully understand the guidelines and restrictions outlined by the HUD program to see if this may be beneficial to you and your situation.

Besides the First Time Home Buyer Tax Credit, homebuyers may also be able to take advantage of other special programs through the FHA.

Even with recent changes, a FHA-backed loan still offers a very low down payment that is a great incentive for many new homebuyers. For those who qualify, a 3.5% percent down payment is substantially lower than the 10-20% you'd have to raise for a conventional loan.

In addition to lower down payments, FHA-backed loans tend to have less stringent credit requirements. Look to Rachel Valentino who is experienced in the current government incentives and programs. She will work with you to explore your options finding one that will fit you and your needs.

In addition to the big reasons outlined above, add historically low interest rates on conventional loans and today being the largest ‘Buyers Market' seen in years, you can see why buying a new home this year really is within your reach. People in DC and the surrounding area are achieving home ownership and you can be one of them.

Whether you are looking for a two-story condo in Washington DC or a spacious home in the suburbs, every first time buyer who works with Rachel Valentino of The Atlantic Coast Connection can find something that appeals to their personality and wallet.