If FHA loans can be had with 3.5% down, and I believe the $8,000 tax credit can be monetized:
RISMEDIA, June 11, 2009-First-time home buyers who would otherwise qualify for the $8,000 tax credit, but don’t have the money for a down payment or closing fees, may now be able to get a loan to help cover those upfront costs.
The U.S. Department of Housing and Urban Development (HUD) announced on May 29 that the Federal Housing Administration (FHA) will allow state housing finance agencies to provide second mortgages “monetizing” the tax credit so that borrowers can use the funds toward their down payments and closing costs for the purchase of homes with FHA-insured mortgage loans.
…which means that some schmoe with no money (sound familiar?) can now buy a $228,571 house (especially if the seller “credits” the buyer money toward closing costs — a total scam!).
Essentially, anyone who wants to buy a home and can afford approximately $1,500-$1,700/mo. (guestimating) is able to do so.
This absolutely affects demand at the lower end, and consequently, at the price points above that, if there is any equity in the lower-end homes.
The termination of these horribly misguided govt give-aways cannot come soon enough.
