Buying Home Versus Renting And Costs Required On Home Purchase
Rising Home Prices And Demand For Housing
The housing market is booming throughout the United States.
- With an exception of handful of states, most areas are seeing rising home values
- Mortgage Rates have been the highest since the 2008 Great Recession
- Rising interest rates have not slowed the housing market
- FHFA raised conforming loan limits to $484,350 for 2019 due to rising home prices
- HUD, the parent of FHA, raised FHA Loan Limits for 2019 to $314,827
- This is the third year in a row both FHFA and HUD increased loan limits
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:
- 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
- Washington D.C.
- Rhode Island
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 email@example.com.