A new state program allows first-time Loudoun home buyers earning up to $108,000 and couples who make up to $135,000 to borrow up to $417,000, with the interest partly subsidized by the Virginia Housing Development Authority.
More from the Wash. Post:
A similar program is available for first-time or repeat homebuyers who make 70 to 100 percent of Loudoun's median income, which is $94,000 by the county's calculations.Programs for all of Northern VA are listed here.
Both programs were started on an experimental basis this year, allowing several Loudoun families to benefit, said Karen Thorson, a loan specialist for the county's Department of Family Services. Loudoun has $4.5 million in loans to offer this fiscal year, so not everyone who qualifies will be able to get one.
7 comments:
Interesting predictions from Mark Zandi chief economist for Moody's Economy.com. Here are some highlights of his forecast, based on a study using anonymous data collected by consumer credit agency Equifax:
Home prices will fall 10% from the peak nationally, more in the bubble regions in California, Florida, Nevada, Arizona and Washington, D.C.
Home sales could bottom later this year, home construction could bottom early next year, and house prices could bottom late next year. It'll be 2010 before the housing market could be termed "normal."
About 17% of total mortgage debt is at risk, totaling about $2.5 trillion in subprime, Alt-A and jumbo debt. About $1.4 trillion is at serious risk of default. Investors will lose about $113 billion as $460 billion worth of mortgages default.
About 20% of the subprime loans written in the last half of 2006 will fail, with the peak of the defaults not coming until 2011. A "significant number" of these borrowers never made a single payment.
More than 2.5 million first mortgages will default this year and next year. Subprime borrowers will experience significant financial distress.
The U.S. economy will grow less than 3% annualized through the middle of 2009. A healthy job market should prevent a recession, although the jobless rate will likely rise to 5% from 4.5% by the end of the year.
Consumer spending has already slowed and will slow further.
My take: For those wanting to buy in Northern Virginia...wait and rent. People may not want to make money on their houses, but none of us can afford to knowingly go into a purchase that will depreciate from the get-go. Who can predict what will happen in the short-term or long-term to force a move or experience a job loss?
Those predictions seem pretty reasonable. I suspect they are somewhat conservative but there is nothing wrong with that.
As I stated in the thread below I am planning around the assumption that the second half of next year will be when we buy. We have plenty of money for a down-payment and are just waiting until the worst is over before making the jump. I don't want to watch several years of savings disappear because we got in too early.
For the time being it is nice to watch prices fall back towards reasonable levels. I expect prices will probably remain stagnant and probably continue to drop when inflation is considered for at least a few more years but that is simply too long to wait for us.
What are they putting down? If it's not 20 % or more, this problem will go on and on. It's a bad idea, IMHO, but the lack of info can make one shudder.
@Kcwood,
Thanks for reporting on the Mark Zandi predictions. It needs a front-page posting here.
@Leroy,
The second half of next year is our target date as well. I enjoy this realtor's Bubbleinfo blog, although it's about conditions on the other coast. I've learned a lot about real estate from it. He had a quote last week about when to buy foreclosures:
"Investors may have pieces of worthless bond funds, but somebody is going to end up having a lot of REO properties. The pressure to unload them by year-end should cause fire-sale conditions in December."
@James,
I think the phrase "throwing good money after bad" may be applicable here. The program's been around since 1972, with some more background here.
I think what's eye-opening "news" on this is that salaries of a single person making 108K and of couples making 135K are considered "low and moderate" income.
Harriet, Leroy,
Some good realtors I know often say that December is the best time to buy houses, bar none.
When you say 'second half of next year', do you think other months like July and August are just as good for this area? That is borne out by last year's charts, but I want to know your opinion because I don't know about the years before last.
TedK,
I would definitely say July and August are good times to make low offers. It makes sense that what's left on the market are the residuals from the Spring. I've also noticed a number of new rentals cropping up (failed sells and such).
I suspected that earlier this year prices were too "aggressive" because sellers and realtors were under the impression that naturally prices should be higher in the Spring. It was probably a good time to be suspicious, especially in hindsight as the second quarter faltered.
I also noticed (anecdotally) that builders seem interested in deal-making at the end of each quarter. For most that would be March, June, September and December.
Harriet,
Thanks for your input!
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