Here in Columbus, the numbers are looking good for everyone. Prices aren’t plummeting, more homes are coming on the market and more buyers are hitting the streets.

While I’d wager we have some pretty affordable subburbs, and are in fact positioned as one of Forbes most stable markets this year, none of Columbus’ suburbs made the list.

Nationwide, home affordability has received a serious boost from the combination of falling home prices and falling mortgage rates.

Today, because of the sagging economy, in most parts of the country, the cost of owning a home versus renting one is now very close to its historical average.

That said, though, near every major city, there are some neighborhoods in which home affordability and quality of life are stand-out.  Using real estate data from OnBoard Informatics, Business Week highlights these areas in a report it calls the “Best Affordable Suburbs“.

Now, the country’s “Best Affordable Suburbs” doesn’t list the nation’s most affordable suburbs, but instead, a group of cities, towns, and villages in which the populace sits between five and sixty-thousand, and the economy, the schools, the lifestyle and the crime levels are all within a desirable range.

As concluded by Business Week, these are areas in which buying a home is a good value.

At the top of the list is Awake, Wisconsin, a suburb 20 minutes west of Milwaukee, prized for its outdoor lifestyle and healthy jobs market.  The complete 50-state listing is posted at Business Week’s website.

The President hasn’t signed anything yet but….Because Congress appears to have reached an agreement on a $789 billion stimulus package for America and because the President is expected to sign it into law, the clock may be ticking for this year’s home buyers and homeowners.

The package contains two main benefits related to housing:

• The first provision is fairly well-known.  It gives first-time home buyers (a first time home buyer is defined as anyone who hasn’t owned a principal residence in the last three years) an $8,000 tax credit provided they purchase a home between January 1, 2009 and (I’ve heard all three) either June 30, August 31, 2009 or December 1, 2009.

Yesterday I read Aug. 31, today I read Dec. 1 and the Dispatch had end of June in a blub this morning. The good news for current buyers–go ahead and buy, you’re covered. If you bought last month, you’re OK too.

This is a true tax credit.  To reduce misuse and abuse, however, the $8,000 credit is contingent on home buyers holding property for at least 3 years.  If the home is sold in fewer than 3 years, the tax credit must be repaid to the government.  It’s also worth noting that the date range applies to closings and not sales agreements. 

• A second noteworthy feature in the package is that the stimulus package gives existing homeowners incentive to “green” their homes.  With available tax credits for energy-efficient windows and doors, furnaces and insulation, homeowners can claim larger tax deductions based on home improvement, up to $1,500.

But, just because the government provides housing-related tax benefits doesn’t mean you should act on them blindly. Tax liability is a highly individual item and you may be ineligible for any number of reasons–income limits?  Be sure to discuss your plans with a qualified accountant before committing to a plan.

Tip - If you've only talked to one lender, talk to another or two.

Again, this is National mortgage news and might not effect us here. I did not personally take a survey of local lenders, but if local Columbus Mortgage lenders are willing to loosen their mortgage requirements, it could bode for a great Spring.

If the unfreezing of credit is paramount to an economic rebound, the first signs of a thaw may have reached Central Ohio.

Monday, the Federal Reserve released its quarterly survey of 84 member banks.  In it, the Fed says that fewer than half of its responding banks tightened “prime” mortgage guidelines over the last 3 months.

This is good news for active Franklin County home buyers who want a mortgage.

The word “Prime” is a vague term with respect to home loans, but it usually refers to mortgage applicants who can document:

• Equity or downpayment in a home 
• Credit scores over 740
• Excessive income versus debt

In looking at the Fed’s survey, one could infer that because less than 50% of banks made credit less available, more than 50% did not.  Borrowing may not be easier for prime borrowers, in other words, but it’s not harder, either.  Count this as a small victory for the housing market. 

All of this said, however, guidelines remain restrictive. 

In the 12-month period beginning late-2007, banks continuously clamped down on low credit scores, low downpayments, and high debt-to-income levels.  In addition, Fannie Mae added new fees based specific loan traits and second mortgages practically vanished from the marketplace.

The cumulative outcome of these actions precludes many Americans from participating in the current Refi Boom.  However, if the trend reported by the Fed continues, lending may open up a bit later this year, providing a boost to housing and to the economy.

If so called “Experts” believe that the tightening of credit helped create this recession. The loosening of credit, therefore, may be the way out.