New Home Buyers Use Installment Loans for Purchase

First-time buyers emerge

Installment loans are aiding first-time home buyers make the purchase of their dreams. When moving to Phoenix, Arizona, Kostas Kalaitzidis longed for a home. Due to his low-income and the high-cost market, he was unable to buy. Just one year later, he was able to buy a formerly-priced $220,000 house for just $82,000. "I'm very glad I waited," he says, "people like me are the ones buying now."

Declining home values

It is estimated that 53% of all home sales are being made by people like Kalaitzidis, according to the National Association of Realtors. The group also says, "While America's declining home values have wrought havoc on home sellers, owners and lenders, first-time buyers can celebrate the housing market bust, and may even help fix it." They expect first-time buyers to comprise the bulk of buyers throughout the rest of 2009.

Although salary is a factor, most first-time buyers are making the move as a result of the huge decrease in home prices. For example, Kalaitzidis' home boasts 2,200 square feet, four bedrooms and 2 ½ baths. At $82,000, it's a relative steal in the real estate market. In addition, tax credits are plentiful for first-time buyers. ... click here to read the rest of the article titled "New Home Buyers Use Installment Loans for Purchase"