Saving a substantial amount of money for a down payment on a house is not always plausible in today's economy with raising food and gas prices. Many people today are living paycheck to paycheck and are not able to save for the required down payment that is often up to 20 percent of the price of the house. Without a substantial down payment people often have to resort to less attractive loans with adjustable interest rates. Adjustable interest rates have led to many families losing their homes to foreclosure when they can no longer afford the payments due to raised interest rates.
There are buyer assistance programs that are approved to work with the Federal Housing Administrations loans. One such program is AmeriDream Inc that allows the seller to give up to six percent of the purchase price of the house back for closing costs or down payment. This program has allowed many people to become first time home owners. Unfortunately this nonprofit program is being threatened by the U.S. Senate and the Department of Housing and Urban Development who want to do away with nonprofit programs of this type. They feel that these programs allow families to purchase homes they cannot afford and according to Senator Kit Bond of Missouri, the surge of national foreclosures show what happens when borrowers overextend themselves. Sen. Bond feels that all homeowners should wait until they have saved for a down payment.
HUD proposed an elimination of these programs as well last fall and was blocked in court; they continue to try. HUD reported that nonprofit down payment assistance was used in nearly 15 percent of all FHA loans that default within the first 90 days. From last October to February down payment assistance was used in nearly 40 percent of all FHA loans. Ann Ashburn, president of AmeriDream questions the reliability of HUD's data. She states; "Down payment assistance funded in part by sellers has a 9 percent success rate, according to the independent U.S. General Accounting Office. To ban this program would be to virtually eliminate 100,000 HUD-qualified first-time home buyers." If this were to happen it would not only be bad for the communities but also for the economy.
According to its web site, over 280,000 families have used AmeriDream to buy a home. According to one such home owner, the assistance did not make them more likely to default on their loan but instead helped them get in the door; an accomplishment that had been a long time coming.
One mortgage broker and owner of a financial company feels that nonprofit programs are coming under scrutiny due to the FHA limit being raised making it a relevant product for more regions. The FHA exists to help people buy houses. Taking away the programs will take away the opportunity to purchase houses for a large number of families. A certified mortgage specialist states that the elimination of these programs will make the housing market worse. The things that have happened in lending over the last few years was not because of having no down payments to buy a home, it was due to having no proven ability to pay the loan. Lenders will often approve loans that are realistically out of range for many families.
A favourite place for British people to purchase their dream holiday home is in the little know region of Messinia. The beautiful area is situated on the south west corner of the Peloponnese which is the southern part of the Greek mainland. There are plenty of properties for sale to choose from including villas, town houses, village houses, old stone cottages, farm houses and apartments.
The Peloponnese is divided from the mainland by the Corinth Canal. This beautiful area hosts some of the most important and imposing ancient sites in Greece; Olympia, Epidavros, Ancient Messini, Methoni Castle to name but a few. The Peloponnese has warm winters and it's not too hot in summer. Its spectacular sandy beaches are unspoiled and the azure water are inviting. The mountain landscape of the Messinian Mani is simple stunning and is dominated by Taygetos, one of the largest mountain ranges in the Peloponnese. Whereas the Messinian peninsular has rolling hills and fertile valleys considered to be the market garden and wine centre of Greece. The city of Kalamata with all its facilities nestles at the head of the Messini Bay in between the two peninsulas. The Peloponnese has something to offer everyone, thus making it an ideal location for prospective holiday home owners to search for property for sale.
It's not only the British that are showing an interest in property for sale in Messinia. Each year more and more foreigners are choosing Messinia as the destination to purchase property for permanent homes or as second homes for their holidays. These people are mostly Germans and Americans, although there are increasing numbers of other foreigners such as Canadians, Dutch, Czechoslovakians, Austrians, French, Finnish, Norwegians and Swedish who are also showing an interest in owning a home in the area.
Despite property prices in the Kalamata area rising between 10 and 15 per cent each year, foreigners are snapping up property for sales at bargain prices. There are plenty of old stones houses for sale which are full of charm and character and in of need renovation or updating. They can often be purchased from as little as ?50,000 on the Mani peninsular. New homes on the Messinian peninsular start from as little as ?120,000 without swimming pool.
Most of the foreigners who are looking for property for sale have visited Greece previously as tourist holidaying on the Peloponnese peninsular. A large number of pensioners have settled and brought homes to live in permanently. However, we are increasingly seeing younger couples or those with young families purchasing property, settling down and making a new live for themselves.
According to the Greek National Land Registry, there are over 3,500 foreigners owning holiday homes or property for permanent residents (a total of 4,600 acres) in the coastal Peloponnese prefecture of Laconia. There are also some 3,150 properties and estates in nearby Messinia that are owned by foreigners. The Mani has been a popular holiday destination for many years and there are already many British people with holiday homes in the area, while there are relatively few that have ventured as far as the Messinian peninsular. However, local property purchasing trends are slowly changing. Interest is increasingly moving towards the Messinian peninsular. This is largely due to the fact that the Messinian peninsular has more towns with basic facilities such as supermarkets, banks, medical clinics and doctors as well as good roads connecting each town. People rarely have to make the journey to Kalamata for every day requirements.
Another reason that people are choosing the Messinian peninsular over the Mani is that the Government is actively encouraging investment on the Messinian peninsular. It is aiming to stimulate local revenue and employment by developing tourism projects such as new golf courses, hotels, shopping centres, marinas and parks. Local infrastructure is currently being improved still further. There are several new roads due to be built in the area and a new train line will connect Messini to the main Kalamata line.
It is hardly surprising that the prefecture of Messinia is increasingly becoming a favourite destination with foreigners who are looking to purchase their dream property before house prices rise beyond their reach.
Both Jennifer Stromsteen & Claire May are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Jennifer Stromsteen has sinced written about articles on various topics from Real Estate, Brain and Anger Control. J Stromsteen has many years expertise in the finance, real estate, and insurance industry. She contributes to various websites such as where. Jennifer Stromsteen's top article generates over 74000 views. to your Favourites.
Claire May has sinced written about articles on various topics from Massage, Property Guide and Home Improvement. For more information and tip about owning a property in Greece and for up-to-date new regarding the region of Messina visit: ABOUT US R &. Claire May's top article generates over 49500 views. to your Favourites.