The real estate fiasco of subprime mortgages has created an excess of residential real estate in the real estate market. Foreclosures are on the rise and the end does not appear to be in sight for at least another year. Thousands of homeowners are losing their homes because adjustable mortgage rates have been adjusted upward and have caused monthly mortgage payments to rise so high that affected homeowners are unable to make the payments. It is inevitable, under these circumstances, that many houses go into foreclosure and banks have to recover them.

While it is unfortunate that many homeowners are losing their homes, the opposite and positive effect is that the property market is now booming for the first time home buyer.

Mortgage interest rates remain low, and banks and real estate lending institutions have fixed 30-40 year loans for home buyers. With home values ​​in many areas of the country, such as California, which plummeted between 30 and 50 percent from what it was a year ago, the market is open to buyers who never owed a home and now want to First time home buyer maryland.

Credit institutions and sellers are highly motivated now and are lending their ears to home buyers by saying "let's make a deal" and negotiate. These are some of the innovative and sensible ways that home buyers can now purchase a home of their own when armed with some form of home buyer education.

1. Use government grants and loans for down payment assistance.

The federal government in 2003 established the American Dream Down Payment Act. This federal law has allocated $ 200 million a year since 2003 to help organize down payments for first-time home buyers. This is a good indication of how serious the government is about helping Americans realize the American dream of homeownership.

Fannie Mae, one of the many federally backed homebuyer programs has programs like the MyCommunity fixed-rate mortgage. This unique program is ideal for the first time home buyer. It provides a low down payment, a high-value loan with broad flexibility, including non-traditional credit considerations that enable the buyer to qualify for the loan. It also has special financial options to serve professions of public servants such as teachers, police officers, fire and health workers, and people with disabilities. 100% financing is available at fixed rates of 30-40 years.

These funds, in addition to other sources of government funding, are made available through federal, state, and local government agencies that provide down payment assistance to their citizens on a case-by-case basis.

Every major city and county has one of these programs. One only needs to exercise a little initiative and these funds can be acquired. Contact your local housing authority, city managers office, or county administration department for details and how to apply.

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Every major city and county has one of these programs. One only needs to exercise a little initiative and these funds can be acquired. Contact your local housing authority, city managers office, or county administration department for details and how to apply.