With renters seeing steeply increasing rents and homebuyers presented with a mix of both housing affordability challenges and opportunities, how much home can you truly afford in today’s market?
Knowing how much home you can afford is really the first step toward homeownership in today’s market. Although interest rates and prices may be bringing some challenges, remote work is expanding search areas for many people and also enabling younger buyers to find their first homes. Additionally, depending on the state they live in, buyers may be able to get financial assistance to buy a home if they meet certain criteria through special homebuying assistance programs.
Some simple ways to build your confidence in your ability to afford a home before you buy can include reviewing not only current interest rates, your available down payment and the loan term, but your cash reserves, your expenses and your overall debt to income ratio (in other words, the percentage of your gross income that goes toward any debts). There may also be other expenses to consider including closing costs, home inspection fees and moving costs, and a trusted mortgage lender can help you get started.
There are now a number of outstanding loan programs created specifically to assist potential buyers with low to moderate income and those from underserved communities. Because one of the biggest difficulties for homebuyers is saving enough money for a down payment and closing costs, among these special loan programs are opportunities for low to zero interest rate down payment assistance loans, and zero interest programs to cover closing costs.
Additionally, first-time homebuyers can build immediate equity in their homes through a zero percent interest loan of up to 10% of the purchase price of their home, and the loan is forgivable if the borrower continuously occupies the home as their primary residence for five years.
There are also special loans exclusively for military veterans, first-time home buyer programs, 30-year fixed-rate conventional mortgage, and FHA backed mortgages along with certain tax credits and grant availability.
When you’re determining the affordability of buying your next home in today’s market, be sure to look for a professional who will offer honest and accurate advice that you can trust, while providing you with the outstanding service and support you deserve. Our goal is to make each and every person we speak to a client for life.
If you are interested in learning more, we are just one phone call, text or email away from answering any questions you have. Please visit https://1stoplending.net for more.