Months ago there was some buzz regarding the most recent stimulus and funds that would be available for grants to those who wish to purchase a foreclosure. The information has been fairly vague for some time, but there is now some specific (not too specific) information on the program.

The Neighborhood Stabilization Program (NSP) is a part of the Housing and Economic Recovery Act of 2008. The program allocates $3.92 Billion nationwide to local state and city governments to help reinvest into areas with abandoned homes. Implementation of the program will come on October 5th, 2009.

Most recently there has been some news that the Salem/Keizer area has $845,564 available for those areas. Today I will be attending a State of Oregon webinar to learn the specifics of the program and will report the information for qualifications, etc as soon as possible.

For now it’s good to know homes have to be in specific areas (we have a map of acceptable areas), income for the borrowers cannot exceed 120% of the areas median income for the given family size and the money will be given in a form of a grant which will be used to help with a down payment and will require the buyer live in the

Summer is off to a quick start this year.  The calendar page hadn’t even turned to June and we’ve had several days in the 80′s.  With the clouds away for a few months now is a great time to begin searching for a home if you’re thinking about purchasing.  As previously mentioned in my First Time Homebuyer Tax Credit post, the Federal Government is now offering an $8,000 first time homebuyer tax credit.  The tax credit is literally free money people!  A first time homebuyer is defined as someone who has not owned a home in the past 3 years.  If you don’t meet this qualification, I’m sure you know someone who does.

Here are some great reason to buy in 2009

Historically low interest rates: Despite what you may have heard in recent weeks, mortgage rates are still at all time lows.  Mortgage rates below 6% only come around every 10 years or so.  To see them in the sub-5% range is even more of a rarity.  First time homebuyers can fit a larger purchase price into their personal budget when interest rates are low.

Historically low home prices: We are definitely beginning to see a great amount of movement of home purchases in the Willamette Valley this year, but we are still have plenty of homeowners with the need to sell.  The inventory of homes on the market is greater than ever which makes it a perfect buyer’s market.

Loan programs designed for first time homebuyers: There are several programs that have been designed and adjusted for first time homebuyers (although they are not necessarily exclusive for first time homebuyers).  The FHA home loan program only requires a down payment of 3.5%.  FHA also offers a rehabilitation home loan which allows borrowers to finance up to $35,000 of improvements.

Free money: The $8,000 first time homebuyer tax credit is definitely a once in a life time opportunity.  The tax credit is only available for those who purchase before November 30th, 2009.  There are a few important steps to buying your first home, so it’s best to get prequalified now to know if you can take advantage of this amazing opportunity.

If you want to discuss how you can take advantage of this market then contact me today.  If you don’t qualify as a first time hombuyer i’m sure you have friends or family who do and should get the education they need to learn about this epic time.

Happy Veterans Day!  I want to give a personal thanks to every man and woman who has served or is currently serving for our country!

As a salute to our Veterans I am going to have a special opportunity for people to share about a person in their life that has served our country.

Please comment on the blog with a short story about how someone in your life has served our country and how they have affected you! Each story will be read, and on Friday I will have one of my colleagues randomly choose an entry and I’ll post a salute to that veteran and provide them with a a gift certificate to Venti’s Cafe!

So please put some thought into those who have impacted your life and fought for our freedom!