Ever since they did away with down payment assistance last fall, we’ve had an issue for 1st time homebuyers. While many here in the Springs are eligible for zero down VA financing, there is a substantial group that is not. FHA financing requires 3.5% down, which is not awful. Sellers have always been able to help with closing costs, and that has not changed either. Still, the new stimulus package makes it nice for buyers to be able to tap their tax payments for up to $8000 to make it happen, and the new provisions make it so that this does not have to be paid back. For people who have plenty of equity, this won’t be any help, but it does help some younger buyers ‘get into the game’ and may free up some ‘move up’ buyers who needed to sell their homes before they could buy something. We’ll see how much real impact it has, but I know I am working with some first time homebuyers who will definitely like the help!
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