Rising Interest Rates, Homebuyer Tax Credit expiration and possible changes in FHA lending could make it harder to qualify to purchase a home. If you are looking to purchase a home, NOW is the time. Interest rates will most likely take a jump when the government stops buying mortgage backed securities this month and they are left to be purchased by investors. The common consensus is that the investors will want a bigger rate of return on their purchases and will thus require the notes to carry a higher interest rate in order to purchase it. The government home buyer credits are also set to expire. In order to qualify you must have your accepted offer in escrow by the end of April and close by the end of June. I think there may be a possibility that they may extend again- I feel like the housing market is still way to shaky to mess with any of the incentives that are in place to keep people buying. Measures will need to be taken to keep rates low as well, although I don't think they'll be able to stay as low as they have been. I think a modest jump of 1/2% is probably where it will land.
FHA loans are also in discussion of being altered. Changes that are being looked at include: Raising down payment requirements from 3.5% to 5%, raising the initial mortgage premium payment from 1.75% to 2.25%, and lowering the maximum seller contribution from 6% to 3%. Although these changes would lower the government's risk on defaulted loans and raise more funds for the FHA, many officials fear that these changes will lower the buyer pool enough to make the housing recovery last even longer. SO, stay tuned to see what changes are made, and in the meantime; check your credit, pay down your debt, and start saving your pennies so you can get in on the best buyers market you will ever see in your lifetime!