Homeownership is still the American dream. Recent polls show that nearly 9 out of 10 Americans still believe owning a home is important. And why not? With interest rates at historical lows and current local housing prices still affordable, it doesn’t make sense to sit on the sidelines anymore.
I don’t know if you have tried renting a home lately in Colorado Springs but not only is it a mad rush to get one but landlords are raising rents because there is so much demand. If I was a renter today, I would seriously think about buying. Take for example, the home I have listed at 1314 Lewis Lane: 4 Bedrooms, 2 full baths, a one car garage and almost 2100 square feet of living space with a beautiful park like back yard with a newer furnace and central air conditioning. Listed at $159,900, if a first time buyer purchased the home with El Paso Bond money with 3% down payment assistance, the total payment would approximately be $695.00. If they were to rent the home it would probably rent for $900-950 a month so buying would save the buyers approximately $255 a month or over $3000 a year.
Many buyers have heard that it is difficult to get financing but there are lenders today that will look at FICO scores as low as 530 with interest rates still below 5%. Yes, you need to have stable employment of at least 2 years on the job, you need to make sufficient income to cover the monthly mortgage payment and living expenses, and if you don’t take advantage of the first time homebuyer’s programs that are available that offer down payment assistance, you will need to have approximately 3.5% saved for your down payment if you are purchasing with an FHA loan.
Why continue to throw money away when you can be one of the 9 Americans that can obtain the dream of owning a home. This bubble of opportunity will not last forever. Now is the time to make your move!
Real Estate Tip: Don’t be afraid to ask the Seller to pay your closing costs and pre-paids. If you are purchasing with a first time homebuyer loan, you could virtually buy a home with less than $1000 of your own money. That’s less than putting down a security deposit with prorated rent!