10 Ways to Come Up With a Down Payment  

You've found the perfect house. Interest rates are still low. There's just one thing standing between you and your dream home: a down payment.

Don't abandon your homeownership quest just yet. There are few ways to come up with the cash for your new castle:

Use special programs. There are many programs for home buyers in down-payment distress. Borrowers in a wide range of incomes, locales and professional groups may have access to aid from Fannie Mae and Freddie Mac, the government-sponsored offices that buy mortgages and package them as investments. Various nonprofit and community groups also lend a hand to buyers struggling to put money down on a home. And don't forget about assistance from state agencies.  

Tap your IRA. If you're looking to buy your first home, let the Internal Revenue Service help. Tax laws allow you to use up to $10,000 in IRA funds as a down payment if you've never owned a house. If you're married and you both are first-time buyers, you each can pull from your retirement accounts, meaning a potential $20,000 down payment. Even better is the IRS definition of first-time home buyer. Technically, you don't have to be purchasing your very first abode. You qualify under the tax rules as long as you (or your spouse) did not own a principal residence at any time during the two years prior to the purchase of the new home. In these instances, Uncle Sam waives the penalty for early withdrawal, but you may owe tax on the money depending on the type of IRA. Many cash-strapped home buyers, however, find the long-term return of investing in residential real estate is worth the short-term tax bill.

Find out about other ways that may help you to come up with a down payment…  

Have any other (legal) suggestions for coming up with a down payment? Leave us your comment by clicking the comment link below.

Real Estate: Who's Buying Now?

Changing American demographics and social norms are altering the real estate landscape: the average home buyer is very different compared with buyers of generations past.  

The biggest group of home buyers by far is still married couples, accounting for 61 percent of all homes bought, according to the National Association of Realtors.  But single women now purchase 22 percent of all homes. Single men accounted for only 9 percent of purchases.   According to Pat Vredevoogd Combs, the president of the National Association of Realtors, that shows real change. "Thirty-five years ago, when I started out as a realtor, a single woman couldn't even get a mortgage," she says.   Part of the reason why women have become such a big buying bloc is that more women are single than ever before. The New York Times recently concluded, after an analysis of Census Bureau data, that 51 percent of all American adult women now live without a spouse.  

Read more about the average home buyer now…

What do you think about the average home buyer as presented in the article? Perhaps you have observed the similar tendencies considering the real estate market nowadays.  Share your experiences by clicking the comment link below.

Consumer Sentiment Hits 3-Year High

U.S. consumer sentiment improved to a 3-year high in early January, propelled by falling gasoline prices and a favorable view of personal finances and economic growth, according to a recent survey.  

The Reuters/University of Michigan Surveys of Consumers said its preliminary January reading on consumer sentiment index rose to 98.0 from 91.7 at the end of December.  

This was the highest since 103.80 in January 2004 and well above the 92.5 median forecast of analysts polled by Reuters.  The surveys' gauge of current consumer conditions was 112.5 against a final December reading of 108.1, while its measure of consumer expectations was 88.7 versus 81.2.  

Consumers, while generally upbeat, remain worried about inflation. The surveys' one-year inflation index edged up to 3.0 percent from 2.9 in late December, and its five-year index stood at 3.0 percent for a third straight month.  

What effect do you think consumer confidence (or a lack thereof) will have on the real estate industry?  We'd love to hear your comments.

Sales of New and Existing Homes Sliding

Mortgage-finance company Fannie Mae said that sales of new and existing homes will continue their slide this year, due largely to investors pulling out of the housing market.

In an economic and housing outlook, Fannie Mae said sales of new homes are expected to drop by 7.1% in 2007, while sales of existing homes are expected to drop 8.1% this year.

Fannie Mae's projections follow similar estimates released by the Mortgage Bankers Association. The trade group forecast declines in 2007 of 7% in existing-home sales and 8% in new-home sales.   Fannie economists said the projected sales for 2007 would be the lowest since 2002.

Read the complete story here…

If you're in the market for a new home, tell us how you feel about the current state of new home sales.  Does it make you feel inclined to wait, or hurry, with a new home decision.  We'd love to hear your comments.

Heating Expenses Down Again This Winter

Falling energy prices are helping lower household heating expenses this winter even more than originally forecast.  

According to the Energy Department, the average U.S. household will pay $873 in heating bills this winter, down from $938 forecast a month ago and the $948 average last winter. If so, consumers this winter will have the lowest heating tab in two years and the first year-over-year decline in five years.  

A sharp drop in oil and natural gas prices is the main reason for the lowered estimate. Mild weather is also allowing consumers to conserve energy.  

How has the lower energy prices affected your household budget this winter?  Leave us your comment on that below.