High unemployment and a weakened economy have eroded consumer confidence when it comes to buying a home. However, putting aside emotions and looking at the numbers – purchasing a home makes more sense now than ever before. Low home prices and record interest rates combined are creating unprecedented opportunities for wise home buyers. Owning a home has always been part of the American dream and it is now more affordable than ever to make that dream a reality.
Baby boomers have seen and experienced up and down cycles with real estate and know that now is a great time. According to a Survey by Better Homes and Gardens Real Estate, 20% of parents have helped their kids with the purchase of their first home. They either bought a home for their kids, contributed to the down payment or co-signed for a home loan. This phenomenon has gained momentum and popularity since the start of the housing crisis.
If real estate is so affordable, why help your kids?
In order to purchase a home, you need cash to pay for the upfront costs of home ownership – down payment and closing costs. Even though many young adults have good jobs, have decent credit scores and can afford a mortgage payment, the upfront costs of home ownership is often a road block. 20% down to get the best interest rate is a large chunk of change – a $130,000 home would require a whooping $26,000 cash down payment plus an additional $6,500 for closing costs if you are looking to buy a home in the Charlotte NC region. Even with FHA financing, which only requires 3.5% down, it is still a lot of money for many first time home buyers and could take years to save up and with interest rates at record low, there is no time to waist waiting on the sideline.
What if you can’t get help from family?
No everybody can turn to their parents for help for the purchase of a home. Fortunately, there are programs available in the Charlotte area to help first time home buyers with the upfront costs of home ownership. Those programs are called down payment assistance programs and can provide as much as $10,000 in financial assistance to cover the upfront costs of home ownership. Those programs are based on a 30-year fixed rate loan using competitive interest rates. We specialize in those programs, so if you are serious about owning a home, contact us today and we will help you take advantage of those programs.