Most people who rent can actually afford to buy their own homes. So what’s stopping them?!?
A lot of renters believe owning a home requires a big down payment, which is difficult to save and still pay all their regular monthly bills. Others are convinced that they won’t qualify for a mortgage and that the payment would be too much anyway. Additionally, just about everyone is overwhelmed by the legal and financial red tape surrounding the purchase of a home. To them, it seems a whole lot easier to just keep paying rent!
Here are a few facts however, that could cause you to change your mind:
FACT: Most people actually qualify for a 3.5% down mortgage but don’t realize it. Some people can actually qualify for a zero down payment mortgage.
FACT: There are special government programs that help first-time home buyers come up with a down payment.
FACT: There are other government programs that help home buyers whom income does not exceed certain maximum amounts, to come up with a down payment.
FACT: The average mortgage payment cost about the same as the average rent payments. For example, if you are paying $850 per month in rent, you could be making mortgage payments on your own $117,000 home. That would probably buy you a lot more space (and privacy!) than you’ve got right now!!
FACT: 77% of renters surveyed said the biggest reason they won’t even check into the possibility of owning their own home is because they are afraid they will feel obligated to buy, or are going to be hounded by salespeople.
How you can qualify for a zero down payment mortgage?
SECRET: (Always it’s really not a secret but it is not well known!) Affordable Housing Assistance Program – NSP Hom ownership Program through the City of Murfreesboro Tennessee.
- Down payment and closing cost assistance is available by HUD for first-time home buyers, up to $10,000 for those whose income does not exceed $41,000.
- This subsidy may be used for principal reduction an/or allowable costs with Conventional, FAA, VA, THDA Loans as allowed by First Mortgage Lender. Visit www.murfreesborotn.gov for more details.
- Certain repayment rate apply.
SECRET: For vacant foreclosed properties within certain tracts identified (see censusbureau.gov) allows for up to $14,999 to be used for pre-qualified properties and can be used to reduce principle and/or for closing costs.
- Funding is through THDA
- After five years, this assistance is forgiven and does not have to be repaid.
- It is possible to get both the $10,000 and the $15,000 (but must have good credit)!!!
SECRET: Rural Development Loans in Tennessee (USDA). Again this should not be a secret, but many, including Realtor, are unaware that these 100% financing, No Money Down Home Loans are available.
- No mortgage insurance
- Low fixed interest rates
- Seller can contribute to closing costs (even though this is a 100% loan, you are still liable for the closing cost).
- Not everyone can qualify for this rural housing loan. Income and geography play a huge factor in approval or denial.
SECRET: For active duty military, veterans and reservist, VA Loan Programs offer low rates and low or no money down options.
- VA can provide you the ability to buy with no out of pocket costs as no mortgage insurance is required and monthly payments are frequently less than other no down payment loans (although there is a funding fee).
Contact me for recommendations on Preferred Lenders who have provided my clients with excellent service over the years!