Certainly, we will see continued economic challenges ahead, but one thing to remember is that the housing market leads the economy in and out of recession. There is a ray of light that is faintly visible to all who are watching closely. If the government programs continue and are even perhaps enhanced, we will begin the recovery in earnest before the year ends.

I often speak about the first-time homebuyer. My reasons for doing so are to remind everyone that all of the movement within our market begins with this group of consumers. When the first-time buyer makes a purchase, it allows that original first-time buyer to move up into their next home, and so on. This is what creates the demand for the homes that many of you own right now. It is a massive chain that needs to be in place for the housing market to be a healthy one.

Many first time buyers are out there taking advantage of the First Time Homebuyers credit. This is an $8,000 credit on your tax return. In some instances, borrowers who use an FHA loan can actually get advances from their lender that let them effectively allow them to receive this credit in advance.

FHA loans require only a 3.5% down payment. This credit cannot be used for the minimum down payment but can be used as an additional down payment or for closing costs. Fran Lichtman Randy Rabney