During a meeting Tuesday with one of my lenders discussing changes effecting The First Time Home Buyer, the topic of declining home values came up and he mentioned that it is very likely that most of our local areas are going to be classified as having declining market values. So as a First Time Home Buyer how does this effect you? At first thought you say wow if that is the case maybe I should wait and buy later. Wrong, if South Jordan and the other areas of Salt Lake are reclassified as declining value areas lenders will require an additional 5% down payment on conventional loans, meaning instead of you having to have a minimum down payment of 5% you will need to have 10% double what you were expecting. He did state that FHA most likely will not change there minimum down payment requirements but loan approval and underwriting will become more difficult and unforgiving.

Due to this it reminded of the following list of additional reasons for the First Time Home Buyer to buy now. I do need to give credit to my broker Cheryl who recently pointed this list that I liked and wanted to include here.

Should I buy now?  Housing may never be this affordable again.  Over the past few months, the market has created very interesting opportunities for first-time home buyers.  If you are renting, now is the time to take advantage of these opportunities. 

You can improve your lifestyle.  You can start earning your own equity instead of paying your landlord’s mortgage and putting money into his pockets.  You won’t have to ask permission to paint a room, have a garden, or remodel.

Take advantage of the great pricing.  Utah housing is affordable and more than ever before, the market has some great interest rates along with some incentives.  It is a buyer’s market and this means you can find some great deals!  The sad thing is we don’t know how long the market will stay at its current pricing.

There are signiciant tax benefits along with the $8,000 incentive for first-time home buyers.  Remember this is only in effect until Decemeber 1, 2009.  Don’t forget the other tax benefits of deducting the mortgage interest and property taxes.  This keeps more money in your pocket right away and each year that you own your home.

Rental rates have been on the rise.  In Salt Lake County, they have increased 9.2% over the past year.  Stop flushing your money down the toilet!!

There are currently a large number of homes on the market ranging in all different price ranges.  The best options for homes and locations always move first.  Move quickly to make sure you are the one who gets the best option.