Asheville Ranked 7th in the Nation for Renter Wage Gap: Alternatives to Renting in the Area
A recent study reported by local news channel WLOS, ranked Asheville in the top ten cities in the US with the most significant renter wage gap. While the disparity has been exacerbated by the end of the CDC’s moratorium on evictions during the pandemic, experts suggest this is merely an acceleration of economic situations in these areas of the country as rents increased faster than incomes.
The average rent in Asheville is currently around $1300 per month for approximately 1000 square feet of living space. And with a lot of our economy based in the service and hospitality industry where pay is often tip-based, the ability to rent affordably in the city is challenging at best.
In the study, Asheville ranked 7th for the renter wage gap among midsized metro areas, with several California cities ranking higher. The only non-California cities high on the list were the Naples area in Florida and Honolulu, Hawaii.
But what does this mean for Asheville? If you’re wondering what’s on the horizon, now is a great time to look into alternatives to renting, including buying a home.
Talk with a Mortgage Lender
If you are a renter who thinks buying a home will better use your finances, now is the perfect time to talk to an independent mortgage lender. We always recommend this as the first step to help you see your budget and how you might qualify for the various loan programs currently available. For many renters in Asheville, the FHA loans can provide an avenue to homeownership.
FHA Loan Requirements
FHA loans have less strict requirements than conventional loans, so it may be helpful to see if you qualify. The requirements include:
- A credit score of 580 or more
- 3.5% of the sale of the home as the down payment
- 15 or 30-year term mortgage
- Mortgage insurance premium required
It’s also helpful to have a debt to income ratio of less than 57% and a housing ratio of 31% or less. To find out more about these requirements if you are a renter, contact a member of the GoPrime Mortgage team today.
Advantages of Having an FHA Loan
If you are a renter and still thinking about whether this is the best solution for you, it may be helpful to consider these advantages. For example, the credit requirements are lower, but FHA loans also have a shorter timeframe since an adverse credit event. That means you don’t have to wait as long to apply after a bankruptcy or foreclosure as you would for a conventional mortgage. You can also get a lower down payment, and the process is more lenient for those who are getting funds as a gift from family.
To learn more about buying a home with an FHA loan, talk to the team at GoPrime Mortgage in West Asheville today.
Do you want to understand the mortgage process better and get preapproved for your next home purchase? Call the team at GoPrime Mortgage today. GoPrime Mortgage in West Asheville is here to help. Call us today at 828-348-1907 – GoPrime Mortgage in West Asheville.
