As the housing slump continues to affect not only African American homeowners, but homeowners across the country and in every neighborhood.

The questions I receive each month reflect what's on the minds Black homeowners who read the "Black Homeowner Newsletter". I'd like to share these questions with you to give you the opportunity to learn not only from the answers I give but from the questions.

Note: Questions edited for brevity.

1. When will home values stop declining?

Most experts estimate declining home values will remain at least two to three years. Based on the time it would take for all the foreclosures and potential foreclosures to cycle through the market.

2. Will the new housing bill help most homeowners in trouble?

The housing bill, while having the purpose of helping homeowners in trouble will do more to help lenders than the millions of homeowners in trouble. While it may help a few homeowners, it's a case of too little to late to help most homeowners in trouble now.

3. Is this a good time to buy a home, or should I wait?

While we have yet to reach a bottom in the market, it's a good time to buy anyway, especially if you don't plan to sell within the next 3 to 5 years after buying.

Be aware the longer you wait the more strict the lending policies will grow. As I write this, many lenders are talking larger down payments, higher FICO scores, and even six months in savings before extending loans. This is coming to a lender near you. That's why the time to buy is now if you can.

4. Most lenders want 10 to 20% down payment to buy a home now, what's left for a first time homebuyer?

You can get an FHA (Federal Housing Association) mortgage for a 3 percent down payment. Because the U.S government backs the loan, the credit qualifications for an FHA mortgage is less severe than conventional mortgages.

In addition, a bankruptcy or foreclosure doesn't disqualify a borrower if you can meet the following requirements. Bankruptcy Chapter 13: One year of on time payments. Bankruptcy Chapter 7: At least two years must pass since the discharge date of the borrower. Foreclosure: At least 3 years must pass since the foreclosure.

5. Could you explain the new housing bill everyone's talking about?

The housing bill signed by President Bush, allows homeowners who are having problems meeting mortgage payments to renegotiate loans guaranteed by the FHA instead of going through foreclosure.

The program is voluntary and lenders must approve certain terms. The bill also offers a $7,500 income tax credit, repayable over 15 years, to first-time home buyers on qualified purchases from April 8, 2008, to June 30, 2009.

6. Will people who have experienced foreclosure ever be able to buy a home again, if so how long?

The Waiting Period to Buy After A Foreclosure General Guidelines

The waiting period is 5 years up to 7 years after a foreclosure.

The waiting period after a Deed-in-Lieu of Foreclosure is 4 - 7 years.

The waiting period after a Short Sale is 2 - 3 years.

7. I see ads offering free grants, how do I to tell the good from the scams?

Although government grants still exist despite the economy, you have watch out. Many grant scammers bilk tens of thousands of people everyday. Here's some quick tips to keep you out of trouble.

*If they ask you to pay for an application fee, it is a scam.

*The application process for government grants can take months. If someone tells you in a day or two you've been chosen for a grant, hold your wallet and walk away ... it is most likely a scam.

* Most legitimate grant information is free. However, there are legitimate companies who will help you find a grant for a fee. If you choose to pay for help with a grant make sure you are paying for a specific service you get in writing. Don't pay for information you can get free.

Google Search "Scam buster websites" and read them first before paying any money to anyone. These sites will help you smell a scam when you see them.