Bad Credit Home Loans – First Time Buyer Assistance
Posted on | August 31, 2009 | 4 Comments
Bad credit home loans definitely changed the way the American financial system is run. In the past, first time buyers needed no assistance because they qualified for almost any size loan, especially when it was an ARM. Mortgage lenders just told them that they could refinance the ARM in a few years because the value of their home was going to go up. There were no ifs, ands or buts about it, your home value WAS going to go up. Then came 2006.
In 2006, the housing market saw its bubble pop in July and the value of homes started to go down. This put a wrench in the whole refinance as a first time buyer theory. When you bought your home in 2006 it was worth $215,000. When you went to refinance in 2008, it was worth $140,000. I promise you, you are not getting any type of successful refinance out of that process. This happened all too often in America and is the main reason we are in the recession we are in now.
For those first time buyers outs there now looking for assistance never let anyone tell you that ANYTHING is going to go up in value forever. What goes up must come down. We have all heard the real estate agent or stock broker that has told us that this is a sure fire investment that is going to make you money. Well, if it is so sure fire, why don’t you take out a home equity line of credit and bet your house on it? Ahh, because it is not a guarantee; thats right!
There is a great deal of mortgage assistance programs out there and it is a good idea to ask around your social network. You might be surprised at who has recently went through the home buying process and there might be someone who has been through the process several times and can give you some pointers on things to look out for and some things that you cannot believe that a realtor tells you. Remember, realtors are trying to make money not be your friend.
President Obama has created many programs to help home buyers so be sure to check them out. One of the best programs out there is the Making Home Affordable program. While much of this program has to do with refinance, you can still benefit by taking a look at the website and seeing what offers are being made in the current economy. Overall, now is a great time to buy a home so get out there and take action!
Author: Mike Garner
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4 Responses to “Bad Credit Home Loans – First Time Buyer Assistance”
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September 1st, 2009 @ 8:32 pm
[...] Full story is available on Subprime Blogger [...]
September 5th, 2009 @ 3:43 am
i want to apply for a home loan with abad credit
September 5th, 2009 @ 3:44 am
i dont have acomment right now
September 5th, 2009 @ 3:45 am
i just want to apply for a home loan