PA Official Says Time is Still Ripe to Buy

The executive director of the Pennsylvania Housing Finance Agency said even though the first-time homebuyer tax credit program is over, it is still the best time for people to purchase their first home or to make the move to a newer or larger home. Brian Hudson said interest rates are at historic lows. For example, his agency is offering a 30-year fixed-rate mortgage at 4.5% for new home purchases and 4.95% for the purchase of an existing home. PHFA offers closing cost assistance, and buyers can put down as little as $1,000. "Keep in mind, too, there is an excellent inventory of homes on the market, providing prospective buyers with plenty of selection. Plus the time available to make an offer is greater than it was just four years ago, so homebuyers don't have to rush their decision due to competition and can take more time to research their potential purchase," Hudson said. He added the housing market in the state did not overheat during the boom, meaning homes have remained a stable investment. PHFA is seeing record volumes because of its "disciplined, common sense lending strategy. We have always required full documentation from families requesting PHFA loans. We have stood by our guidelines, insisting that a person's ability to repay a loan must be a critical factor in the lending decision. We only offer fixed-rate mortgages, so that our borrowers aren't surprised by increased or balloon payments a few years into their home purchase," Hudson said.