Time Is Running Out For First Time Home Buyers To Collect $8,000

I am Brian Allen, The Mortgage Coach, and flattered to be given the opportunity to be a part of The Coaches Corner Blog with Ken Pasch and Paul Nichols, two people I have a mountain of respect for.  They have set the bar pretty high with their knowledge.  When they asked me if I had any interest in joining them on WBLF 970AM every Saturday, and with this blog, the timing couldn’t have been better.  There were many topics that I needed to address in the mortgage business but did not have an outlet.

To give you a little background on me, I have been a part of the Penn State and State College community since 1985, when I played basketball for Penn State.  When the opportunity arose to open a new branch of our national mortgage company and return to Happy Valley, I jumped at it.  It is no secret that those of us in the mortgage business don’t have a great reputation…”Sell like crazy, rake in the dough, buy lots of cool stuff, and if things fall between the cracks, oh well.”

That was the motto.

The positive of the so called “mortgage meltdown” has been most of those type of loan officers are out of the business.  I always had a different, more long-term perspective on mortgage advising.  If I educated my clients and treated them as if they were in my family, they would be my clients for life. One of my favorite clients and the subject of this first blog is the first time home buyer.  They can be overwhelmed by the process and require a lot of hand holding and education.  First Time Home Buyers also are the most appreciative at the end of the process.  Right now, this demographic has the opportunity to take advantage of what I call THE PERFECT STORM FOR FIRST TIME HOME BUYERS. Interest rates are at historical lows.  Rates have been kept artificially low to help the economy, but that will not be guaranteed after December 31, 2009 when The Federal Reserve's commitment to buying mortgage backed securities ceases.
Not only are home prices low, but we are also witnessing the best home affordability index since it started being measured in 1970.  In 2006, a homeowner’s monthly mortgage payment ate up about a quarter of their income.  In 2009, it is only requiring 15% of one’s income. The government is putting $8,000 back in the pocket of all first time homebuyers closing on their home by November 30, 2009 and it doesn’t have to be paid back!

There are government programs that require zero down (USDA Rural Housing) or as little as 3.5% down (FHA).  These programs are more forgiving to those who are credit challenged.  If your credit is still not satisfactory we will work with you to repair it.

The shocker is 47% of the potential buyers have no idea about the tax credit and time is running out quickly.  It is going to be the mission of myself and my realtor partner, Ryan Lowe, to hold free educational home buyer seminars every Football Friday in the month of September.  That means September 4th, 11th, 18th, and 25th.  These luncheons will be held at noon in The Education Room of The RE/MAX office, on the second floor (1375 Martin St, State College, PA 16803).   We are calling it the Quarter-Back Challenge because we, along with the government, are trying to infuse a quarter of a million dollars back into the Central Pennsylvania Community through the tax credit.  It’s not a contest and the seminars will not be sales meetings.  It is an educational cause and we want everyone to know about it.  Everyone reading this blog knows someone who could benefit from such a seminar.

To find out more about The Quarter-Back Challenge you can contact me at 814.272.0125 or email me at You can also join me and Ryan Lowe this and every Saturday morning at 11 AM for "The Real Estate and Financing Power Hour", part of Coaches Corner, Saturday Morning on News talk Radio, WBLF, 970 AM and FM Talk 103.7.