While the real estate downturn has devastated many households, it has also opened up opportunities for first-time home buyers and others to take advantage of more affordable prices and low interest rates.

One advantage for first-time buyers is that they don’t have existing homes to sell, experts say.

That’s a problem plaguing many move-up buyers in today’s market with more than 50,000 existing homes for sale and builders offering big incentives that are hard to rival. Others are stuck because they owe more than their current homes are worth.

“It’s become tough to sell a house even if you have equity in it,” Gilbert real estate agent Tra Bell said.

The huge inventory of homes puts buyers “in the driver’s seat” as far as selection, Bell said.

And sellers are doing whatever they can to get their houses sold, so now’s the time to negotiate, he said. In many cases, sellers are contributing toward closing costs or lowering prices.

Low interest rates are also making homeownership more affordable for first-time buyers, Bell said.

Rates on 30-year, fixed-rate mortgages were below 6 percent this week.

Interest rates are near a 40-year low, said Malcolm MacEwen, president of Coldwell Banker Residential Brokerage in Arizona.

Federal Housing Administration, or FHA loans, are also a popular option for first-time buyers because they require a 3 percent down payment and don’t have specific credit score criteria. FHA loans are projected to increase from 3 percent or 4 percent of the market to more than 20 percent, he said.

Combined with lower home prices, the rates have made mortgage payments more affordable and also competitive with the rental market, MacEwen said.

Home prices have also leveled or gone down across all price points, including entry-level homes, he said.

Builders have knocked tens of thousands of dollars off the prices of new homes, especially in outlying areas, such as Maricopa and Queen Creek. A rising number of foreclosures and bank-repossessed properties also offer large discounts.

Mesa real estate agent Steffanie Countryman said she recently listed a bank-owned property in south Chandler for $469,000 — almost $200,000 less than what the former owner paid for it in 2006.

“(Prices) jumped up so quickly,” Countryman said. “It’s like anything else. You swing way up, you’re going to swing way down.”

But before home buyers try to snag the deals, experts say, there are a few things they should keep in mind.

Talking to a lender should be the first thing they do to find out if they can even qualify for a home, Countryman said. They may need to clean up their credit or save more money first, she said.

Potential buyers also need to fully understand the terms of the loan they’re interested in, MacEwen said.

Does it have a fixed or adjustable interest rate? Is deferred interest accruing?

Do research to find a real estate agent and a loan officer that you’re comfortable with, MacEwen said. Ask for referrals. Check agent Web sites for years of experience.

Buyers need to be cautious and not overstretch financially, said Jay Butler, director of Arizona State University’s Realty Studies program.

“Make sure you sit down as a household (and) figure out what’s important to you,” Butler said.