Are you someone who has always thought buying a home in Maricopa county would be impossible? Just know there’s help out there for you. One big reason people think that they can’t qualify to buy a home is because they don’t have enough money for a down payment. The Home in Five down payment assistance program offers up to 7% in down payment/closing cost assistance. You may be thinking to yourself… “What’s the catch, nobody is going to just give me free money to put down on a house?” There are a few requirements to qualify for this loan program, but there is a good chance that you are one of those that do qualify. Your credit score has to be at least a 640 and your debt to income ratio can’t exceed 50%. You also can not exceed the annual income limit which is $105,000. If you are one of those people who do not qualify at this time, know that with our professional guidance we can help you get their most likely sooner than you may think. If you are one of those people who do meet these qualifications then you are more then qualified to buy! This program also offers an additional 1% down payment to teachers, first responders, veterans, and even income-qualified borrowers ($34,550 income limit for income-qualified borrowers).
Benefits to Buying instead of Renting
Renting is a way to get by which makes sense depending on someone’s situation. Buying a home is a way to truly live life while reaping all the benefits that come with owning. We spend a lot of time in the homes we live, which means we make many memories in those places. Many people like to feel comfortable as well as want their family members to feel comfortable. When renting you never know when your owner might want to sell. Being given a 30 day notice to vacate isn’t the most pleasant surprise. Whether you have a family with kids or you are a single individual, picking up and moving to a whole new home can be a highly stressful time. Kids may have to change schools, it may put you farther away from your job, it all really just leads to the unknown. When owning a home you are in full control, being able to decide when to move as well as the control to make any changes to the home.
Read: Is Rent-to-Own Worth it?
Ways to Buy a Home with No Money Down
Financially, owning a home is so much more rewarding than renting. Instead of throwing money down the drain to the person you are renting from, you can build equity in your own home. If you are looking into a certain neighborhood or area to live there will most likely be both rentals and homes for sale. A 280k home will probably rent out for somewhere around $1600 – $1800 a month. The monthly mortgage on that same home will be somewhere between $1350 – $1500. Another huge benefit to buying is being able to write off your taxes on the home. Many people are surprised to learn that when you own a home it is an absolutely huge tax break because you can subtract your property taxes and mortgage interest paid from what you owe on your taxes. Also, the Phoenix housing market has gone up at a rate of approximately 8% a year for the past 3 years, for a total of about 25%. This means if a person purchased their home in 2016 for $280,000, in today’s market it would sell for around $350,000. The Phoenix housing market is absolutely on fire. Many think this is just a “bubble”, but in actuality it is the result of a housing shortage. The booming job market and low new home inventory means home price increases are here to stay. With interest rates at a 50 year low, there is no better time to buy than now.
Find Out: How Much Home You Can Afford
Home in Five Loan Program
The Home in Five program is a great way for anyone needing financial assistance to be able to buy a home with no money down, so that they can start to reap all of the benefits that come with home ownership. Here at Century 21 Northwest, we have helped people in every situation and stage of life to purchase their own home. You may qualify to buy now, or you may need a couple of years to rebuild your credit. No matter what situation you are in, we are more than happy to guide you through this process. We are partnered with some amazing local lenders, who have clear-cut plans and simple steps for a person to take in order to help build their credit. These lenders truly care for their clients, and nothing is more satisfying than working with someone over a period of time and finally being able to reach the common goal of purchasing a home. Eventually the day will come when you can walk into a home and be able to call it your own. With some diligent guidance from our team of professionals, and your own determination to make it happen, that day may be sooner than you think!
Written by Logun Lundquist – Logun is a real estate agent at CENTURY 21 Northwest Realty.