Do You Have $2500? MSN Says That is Enough

Got $2,500? Buy a house

Rock-bottom interest rates and an $8,000 tax credit make a home possible for many first-time buyers -- with no trick mortgages or financial gymnastics required.

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By Marilyn Lewis

MSN Money

A triple play like this one probably won't happen again in your lifetime:

• Money's cheaper than dirt.

• Home prices have been knocked back to 2003 levels.

• The federal government wants to pay you up to $8,000 for buying a house.

With that tax incentive, average credit and less than $2,500 in savings, it's possible to buy a $150,000 starter home for about $1,000 a month, taxes and insurance included.

"It may be the best time to buy a home that we've seen in this generation -- for everybody but particularly for first-time homebuyers," says Brad Blackwell, a national sales manager for Wells Fargo Home Mortgage. The flood of homes for sale is hard on sellers, but it gives buyers an unusually wide selection, he points out.

It's a memorable moment for responsible buyers who've been waiting to own a home. While the new tax credit is just the kicker some buyers have needed, historically low interest rates take some risk out of buying now. Waiting for lower prices might be a false economy if you lose a great rate. The monthly payments on a $200,000 mortgage at 5% and a $180,000 loan at 6% are about the same.

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