THE BEST THREE WAYS TO FINANCE A HOME IN THE BLACK HILLS

As part of the economic jump-start strategy, three government agencies are making it much easier to buy a home. Some of this was just announced this week by the U.S Secretary of Housing. I am seeing definite up-turn in buying interest. In fact, my own business is getting down right frenetic.

It's very simple and easy to participate in these opportunities if you and your next home qualify. Call me if you have questions. Here goes.

1. Using First-Time Homebuyer Tax Credits for the Downpayment
Yep. You read it right. This is a brand new breakthrough. Many of our clients have been encouraged by the prospect of the $8,000 tax credit, but the enthusiasm waned at the prospect of waiting a year after buying their home, to actually collect the tax credit. That's too late, way too late, for someone who needed the 8,000 bucks for a downpayment. But in a letter this week from Brian Montgomery, U.S. Assistant Secretary for Housing, he announced a number of ways that homebuyers can "monetize" the tax credit, in time to use it toward their downpayment. In effect organizations can make a short term loan to a homebuyer for the downpayment, with the condition that when the IRS does send out the Tax Credit, this small loan gets paid off. Now, we are talking serious jumpstarting stimulus. If this doesn't get the market popping, what will?

2. 3.5% Initial Mortgage Interest for Qualifying Lower Income South Dakotans
This is a government-subsidized mortgage rate reduction for South Dakotans who's lower income is eligible. After 12 months it goes to 4%, then 4.5% after two years, then finally up to 5.5% until thirty years.

3. 100% (No-downpayment) Mortgages for Rural Homes and South Dakotans
The U.S. Department of Agriculture's Rural Development authority makes available loans for 100% of the home price for certain homes in designated "rural" areas.

If you want to know more about any of these programs, give me a call at 605.863.0806. I can help you get started learning whether you and your next home might qualify. I have pamphlets, maps, forms to apply for your benefit, and a list of homes that qualify.

But please hurry. It appears that people are catching on and buying up homes faster each week (see my charts below, of the growing list of Pending Sales). Especially starting this week, with U.S. Housing's brand new bridge-loan program for applying the tax credit dollars to your downpayment.