Mortgage Updates

Over the last two years 85% of my customers have been first time home buyers.  Out of that group the fortunate ones had funds to draw down from their 401k retirement account.  Others got a gift from parents, but most of my buyers were able to buy using down payment assistance. 

 Those sources came from CalHFA, First House, Access and Nehemiah.  When Citi was Bank backed out of the "special programs" last fall, First House and Access disappeared.  With the CA state budget crisis all DAPs from CalHFA was suspended.  Unless the buyers are willing to buy within certain Sacramento "target" areas... there is NO down payment assistance.  The buyers I have been working with are good people, without enough savings to buy.  Since the tumble on Wall Street, parents haven't been ponying up the funds, either. 

The details in this,  January Home Sales Data Proves Homebuyers Need Incentives do not surprise me. (http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/02-25-2009/0004978814&EDATE=&goback=%2Eanh_1801487) What does surprise me is how our governmental leaders don't get the picture.  The first time buyer is what will get us out of this housing boondoggle.  With out a strong first time buyer market, there will never be a true "move up" market.  Let's get the REOs off the books.  Our Congress needs to act and support seller funded down payment assistance. It needs to happen sooner, rather than later.