Can you afford three percent down?
In Asheville, NC, and in the Bay Area of Northern California, rents can be exorbitant. Many people don’t think they can afford a house, so they continue to make those high rental payments, putting money in someone else’s pocket. But if you can afford to put just three percent down, you may be able to afford to buy a house. For first-time homebuyers stuck in the rental spiral, this offer’s too good to ignore. So what does three percent down look like? For starters, if you wanted to buy a $225,000 house, you’d need $6,750. A $500,000 house, a little more common in these hot housing markets, requires $15,000 down. You can use your savings or a gift. If you really want to get into a house of your own, consider selling your new car, buying a used one, and using the difference to buy a house.
Other Expenses
Yes, you need money for other things, such as closing and moving costs. Depending on your mortgage loan type, though, you may be able to get the closing costs wrapped up into the mortgage, so that’s even less money you need up front. Talk to an independent mortgage lender like Zack Adam of Prime Mortgage Lending of West Asheville to see if you qualify for a “three percent down” loan.
At the same time, you still need to pay your bills, buy groceries and fill the gas tank, so you need to have more in your coffers than just the down payment. Start a savings plan to get there. Home ownership may be the single most important investment you make. Break those expensive ties to your landlord by putting $150 or $300 aside every month, and you’ll soon have enough for a down payment on a house.
A Great Deal for First-Time Buyers
According to Zack Adam, it’s a great time for first-time homebuyers. Programs exist to help first-time homebuyers if you don’t have a lot of money to put down, but restrictions do apply and not everyone qualifies. Contact Zack to find out if you qualify for a three percent down loan or even a loan that requires no down payment.
Younger homebuyers often fall into this category. If you’ve been waiting to buy a first home, wait no longer. The rates are good, and it’s now possible to become a homeowner with good credit and some savings. Three percent down loans may not have the lowest rates, and you will have to carry mortgage insurance in some cases, but these loans are available and can get you into your own home.
Affordable Housing Means Affording Your House
Affordable housing is an issue in the United States, from Asheville to Oakland. As urban real estate prices rise, affordable housing becomes continually more elusive. But you can find deals everywhere, whether it’s a fixer-upper or in a less-than-ideal neighborhood. The biggest issue keeping homebuyers stuck renting has been getting a loan. Traditional mortgages require an average 20 percent down, which too often proves to be too big an obstacle to homeownership.
If you only need three percent down, that obstacle just got much lower. Many working couples and families can afford that threshold. Often, moving out of an apartment and into a house actually reduces monthly housing costs. As an added advantage (as if one were needed), you’re paying yourself, gaining equity in your home, with every mortgage payment you make. So stop putting money into someone else’s pocket and put it in your own. Buy a home with three percent down.Let Zack tell you if you qualify.
