For David Flynn and fiancee Melissa Murphy, now is the right time to buy their first home.

Flynn and Murphy expect to close on the purchase of a two-bedroom home in the new Nanala at Mehana subdivision built by D.R. Horton Schuler in Kapolei by the end of the month.

The two- and three-bedroom townhomes at Nanala, one of eight communities planned for the master development of Mehana, start at $378,000.

For them, the developer's $15,000 incentive, plus the federal tax credit of $8,000 and low interest rates were hard to pass up.

Flynn said he did have second thoughts because of the economic recession and the fear of being stuck with a mortgage when so many people are getting laid off.

“;We were considering pulling out,”; he said. “;But then the stimulus package came through and we decided to move forward.”;

Even though prices might drop lower, Flynn said interest rates might go up again and now was the time to act.

Compared to when they were house hunting two years ago, Flynn said the couple had plenty to choose from, without the same urgency of having to put in an offer right away.

They took their time looking at homes in Waikele as well as Kapolei.

In the end, the new home at Nanala with hardwood floors, an upgraded kitchen, garage and central air-conditioning won them over.

“;The price was right, and the house was right,”; said Flynn. “;We thought about waiting, but you have to be ahead of the curve. Once the market turns around, you and everyone will be looking for a home.”;

The interest rate also was right, at 4.5 percent for a 30-year loan.

Through their Realtor, Zona Jones at Prudential Locations, they'll be getting an advance on the $8,000 tax credit, which was added incentive.

While it will mean more of a commute — he works as the manager of an industry-supply company in Mapunapuna and she works as a manager at Sears in Kaneohe — it came down to getting a larger home for an extra six-and-a-half-mile drive.

Buying a home?

Prudential Locations' first-time homebuyer seminar

» Tuesday, 5:30 p.m. to 7 p.m.

» Saturday, 10:30 a.m. to 12:30 p.m.

» Diamond Head Office, 614 Kapahulu Ave., Suite 300

» Call 377-4661 to reserve a spot.

Source: Prudential Locations