It appears to be a positive outlook for our 2012 housing condition. Luckily, snow has not paved heavy enough to cause major delays in our travel. As cold as it was this past Sunday, we continue to receive a good amount of foot traffic indicating serious buyers in search of their new home, even in the midst of winter. And as most sellers would agree, those contracts they receive in the winter compared to summer are taken much more seriously and with a higher chance of settlement.

We are also seeing more and more contracts from a trickle effect of decrease in debts. More and more homeowners are able to pay off their debts and seeing credit as becoming easier and easier to achieve. Some banks are finally reaching a point of stability where they are able to get back to business and help push our housing market forward. This is a positive indication that our economy is on the path to recovery.

Another positive sign of strength in our economy is when we see buyers creating access to liquidity, by adding a home equity line of credit. Having liquid cash readily available is a very important first step when buying a home and using that cash towards your good faith shows sellers seriousness and strong motivation. And with interest rates continuing to stay at an all-time low, it’s a perfect combination for making a purchase.

Banks are now in a position where they are capable and permitting homeowners to refinance what was once a very large debt. Homeowners are now able to consolidate their multiple debts into one, taking a huge burden off of families, thereby, encouraging stability in repayment of loans and creating a sense of security.

Buyer’s affordability to purchase a home is soaring for a couple of good reasons. With discounted homes, such as short sales and foreclosure, many are finding these homes in surprisingly great condition. And what better time to purchase with financing when it’s costing just under 4% to do so right now? Not to mention the Home Loan Purchase Grant Programs available from specific lending institutions, which are not just for first time homebuyers, but repeat buyers as well.

Lastly, bravo to our private sector for creating more jobs in the latter half of 2011! As more opportunities arise for those seeking jobs, it is only another positive sign that our economy is moving on the path of recovery.

The new FHA limits are about to take hold on October 1! The new loan ceiling limits will decrease from $$729,750 to $625,500.

What does that mean?  Buyers financing $625,499 or more will have more difficulty.  If you are borrowing more than $625,499 you won’t be able to benefit from the low down payments offered through the FHA programs at 3.5% and other low down payment programs and you will need at least 20% in down payment. It doesn’t matter how good your credit is or how much money you make.

There is a lot of uncertainty in the lending world and also whether this new ceiling will end up happening.  There is a bill in Congress right now to try to extend the current ceiling until 2013, but will it pass? We will likely need to wait until the end of September to find out.

Financing just keeps getting more and more difficult. Did you think it was already hard? We believe buyers will soon need larger down payments, better credit scores, and show more reserves. It won’t get easier, that’s for sure. So if you are thinking about buying, this may be the best time and don’t forget about the amazing interest rates we still have.