Owning a home provides not only a roof over your head, but is one of the most proven and straightforward paths to building wealth. This wealth is generally built over time as a long-term investment and is measured by the amount of equity you build. In fact, your home will usually be one of the most valuable assets you will own. In this blog we will look at the ways first-time homebuyers can increase their buying power and build equity fast.
Equity is the difference between the market value of your home and the amount you owe on it. The greater the value of your home and the less that you owe, means the greater equity you have. Home equity can be realized in several ways, including a larger down payment at purchase, paying down the principal on the loan, or by increases in the value of your home.
As a first-time home buyer in a competitive market, the biggest obstacle to affordability you may be facing is not having a large enough down payment. With today’s values and rising rates, it can be difficult to place a successful offer on an affordable home if you are competing with trade-up home buyers who have plenty of cash available from their home equity.
However, at 1 Stop Lending we can help first-time homebuyers in California with more equitable access to homeownership while providing the opportunity for a head start on immediate equity in your home with an equity builder loan.
An equity builder loan can provide first-time home buyers down payment assistance of up to 10% of the purchase price of the home at zero percent interest and is forgivable if the borrower continuously occupies the home as their primary residence for five years. You may have to pay back a portion of the loan if you occupy the home for less than five years.
You’re a first-time homebuyer if you’ve never owned a home. You are also considered a first-time homebuyer again if you owned your home three or more years ago, but sold it, and you can take advantage of all of the benefits of the program. Additionally, this loan can be used to purchase a single-family home, one-unit residence, including approved condominium or Planned Unit Development (PUD), or manufactured housing. A guest house, granny unit or in-law quarters may also be eligible with additional grants available to provide options for adding much-needed housing in California.
If you are interested in learning more about increasing your buying power and building equity fast with an equity builder loan, we are just one phone call, text or email away from answering any questions you have. Please visit https://1stoplending.net for more information.