Five Reasons to Buy

By Tom Balk – tom@afirealestate.com

1 – Currently the FHA and Fannie Mae conforming limits are BEING RAISED BACK UP TO $729,750 in most Bay Area Counties. This is a temporary increase for 2009 only.

2 – Federal Tax Credit up to $8,000 (or 10% of the sales price, if lower) is available to all First Time Home Buyers who purchase by December 1, 2009. With a tax credit, you subtract the credit amount from the total you would otherwise pay to the IRS. So, if you owe $2000 and you qualify for the credit, you would end up getting a $6000 refund.

3 – Interest Rates are at historical lows, however, they will rise before the economy actually recovers. Today’s 30 year fixed rate loans are in the 4.5% to 5.5% range.

4 – Home prices have dropped dramatically over the past 2 years. Depending on your specific market, you could be purchasing a home at the most affordable levels in decades.

5 – A state tax credit of up to $10,000 is available to purchasers of NEW homes that close escrow before Feb. 28, 2010.