Buying Home Versus Renting And Costs Required On Home Purchase

0

Recent studies show that more and more college graduates are living at home with their parents and/or renting.

  • Buying their first home is often not a priority for younger Americans
  • However, once they move out of their parents home and are renting and landlords are increasing rents, this is when they seriously consider buying a home
  • Recent graduates of colleges and technical schools are doing more research on Buying Home Versus Renting
  • They often come to the realization that Buying Home Versus Renting can be cheaper
  • Buying Home Versus Renting solves the issue of landlords increasing rents year after year
  • Buying Home Versus Renting often makes housing much more affordable

We will discuss the great benefits of Buying Home Versus Renting on this blog.

Rising Home Prices And Demand For Housing

The housing market is booming throughout the United States.

Many homeowners who purchased homes just a few years are enjoying a hefty equity position.

Buying Home Versus Renting In Affordable Housing Market With Low Cost Of Living

Some of the hottest housing markets where buyers can purchase affordable homes with low property taxes are the following:

  • Indiana
  • Kentucky
  • Mississippi
  • Texas
  • Georgia
  • Ohio
  • Michigan
  • Colorado
  • Pennsylvania
  • Alabama
  • North Carolina

Median home prices on the above states is $275,650. Depending on the area, rents on a nice sized 2 bedroom/2 bath home/apartment can go for $1,500 to $2,000 plus. Depending on the property taxes, buying home versus renting may be cheaper. Another note to consider is that homes are still appreciating. There is more demand for homes than in inventory. Although rates have been the highest since the 2008 Great Recession, there is no sign of a housing correction in the near future. Actually, it is the opposite. Home prices are still expected to rise in the coming months and years.

Worst Places To Purchase Homes In 2019

There are many states where homeowners are selling their home and relocating to other states with lower taxes.

  • New York lost 1.4 million residents due to high state taxes
  • This includes property taxes, state income taxes, and sales taxes
  • California lost over one million residents in the past decade due to high home prices, high sales taxes, and high cost of living
  • Average home prices in California is $578,650 compared the national median home prices of $298,500

Here are other states where homeowners are leaving to other states with low taxes and lower cost of living:

  • New York
  • California
  • Massachusetts
  • Connecticut
  • Washington D.C.
  • Rhode Island
  • Vermont

Many companies offer remote job opportunities. Today, many home buyers can live in any state they like due to technological advances in the job market. A large percentage of companies allow employees to work out of their homes versus reporting to a local physical location. This enables home buyers to purchase homes in affordable states with a low cost of living.

How Much Does It Cost To Purchase Average Home

All home purchases require a down payment and closing costs.

  • Many first time home buyers do not consider purchasing a home
  • The main reason is that they believe buyers need perfect credit and 20% down payment
  • This is not the case
  • Home buyers can purchase homes with little or no down payment
  • Most of our home buyers at Gustan Cho Associates do not have to come up with any closing costs
  • Most of our borrowers get sellers concessions by home sellers to cover most or all of their closing costs
  • FHA Loans require 3.5% down payment and allows up to 6% sellers concessions
  • VA and USDA does not require any down payment and offers 100% financing
  • Fannie Mae and Freddie Mac requires 3% to 5% down payment on conventional loans and 3% sellers concessions

If borrowers are short of closing costs, lenders can offer lender credit in lieu of higher rates. Down payment can be gifted by family.

Home Purchase With Bad Credit

Gustan Cho Associates are experts in helping home buyers with bad credit. Borrowers can qualify for FHA, VA, USDA, Conventional loans after bankruptcy, foreclosure, deed in lieu, short sale after meeting the waiting period requirements.

Here are the mandatory waiting period requirements after bankruptcy and housing event:

  • FHA and VA Loans require 2 year waiting period after Chapter 7 bankruptcy discharged date
  • Home buyers in a current Chapter 13 Repayment plan can qualify for VA and FHA Loans during Chapter 13 plan once they complete 12 months of timely payments with Trustee Approval
  • There is no waiting period after Chapter 13 discharged date on VA and FHA Loans
  • FHA and USDA requires 3 years waiting period after foreclosure, deed in lieu of foreclosure, short sale
  • VA requires two years waiting period after foreclosure, deed in lieu of foreclosure, short sale to qualify for VA Loans
  • Fannie Mae and Freddie Mac requires four years waiting period after Chapter 7 Bankruptcy, Chapter 13 dismissal date, deed in lieu of foreclosure and/or short sale on conventional loans
  • There is a seven-year waiting period to qualify for conventional loans after foreclosure
  • Two-year waiting period after Chapter 13 Bankruptcy discharge date on conventional loans

Gustan Cho Associates at Loan Cabin Inc. offers non-qm loans where there is no waiting period to qualify for mortgage after bankuptcy, foreclosure, short sale, and deed in lieu of foreclosure. Home buyers who need to qualify for mortgage with a direct lender with no overlays, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com.

Leave A Reply

Your email address will not be published.

Call Now ButtonCALL NOW