Cash or Financing?

One of the first question that might come to mind when thinking of purchasing a home is, "How am I going to buy it?" Wouldn't it be nice if we all had a plethora of cash to be able to spend on buying a house? Since a good majority of us do not, financing your home is the alternative. This tends to scare people because they assume that they need the coveted down-payment 20% of the purchase price before even exploring their options. Well, that couldn't be further from the truth!

Did you know that there are loans that might be catered to your specific needs? These types of loans are great because they are built for people of like financial situations and home buying experiences. The market is set up for buyers of different shapes and sizes to be able to own a piece of the American dream. Below are three types of loans that are great for first-time-home-buyers or those with not a lot of cash on hand:

-United States Department of Agriculture Loan (USDA)
Certain areas are classified by the USDA as rural, and if a home you want to purchase is in an area labeled as such, you can finance the entire purchase price of the home. You read correctly, the loan requires a down-payment of 0%! "Rural" doesn't always mean that your neighbor will be a cow or pig (in the literal sense, of course); rather, it means the area is not developed to the extent that would classify it another way. Click here to see the areas currently classified as rural. You may be surprised!

-5% Conventional Loan
This loan enjoys the same perks of the more well-known 20% Conventional Loan but only requires a down-payment of 5% of the purchase price of the home. The buyer is responsible for paying monthly private mortgage insurance (PMI) until they own 20% equity in the home, and then they are eligible to drop that payment. Although your monthly payments will be slightly more due to PMI, you can purchase a home without having a ton of cash on hand for a down-payment.

-Federal Housing Administration Loan (FHA)
This loan only requires a down-payment of 3.5% of the purchase price of the home. Talk about not needing much cash! The buyer is responsible for paying monthly PMI for the life of the loan. Although this may not seem ideal, it is a great alternative if you want to save your cash for closing costs, home repairs, furniture or other personal needs. If you can afford the monthly payments including PMI now, you can likely plan your budget accordingly for years to come.

There are plenty more types of loans out there that you might be eligible for that you haven't even heard of. For more information on obtaining a mortgage and starting the first step of the home buying experience, reach out to one of the hardest-working mortgage companies I know- Movement Mortgage, and tell them Jackie sent you! Their contact information can be found below:

Movement Mortgage
Paul Massey- 407-803-2748, paul.massey@movementmortgage.com
Jeff Donaldson- 407-421-0420, jeff.donaldson@movement.com

"Where the Magic of Disney meets your Real Estate needs."

Are you ready to start looking for the perfect home? Contact Jackie at 941-356-3956 or jackievoigt@kw.com now!

Happy New Year!

Welcome to 2016 everyone! Are your resolutions written down and posted somewhere that you can see them every day? One of my resolutions is to time block. I find myself rushing around trying to squeeze things in here and there, and I know I can avoid a great deal of stress if I prioritize better and schedule my days accordingly. What are yours?

The year 2016 will prove to be a great year to purchase a home in the Central Florida area for many reasons. If buying a home is on your list of things to explore in the new year, you are very smart! Owning a home can be a great investment in your future both financially and personally. Check out some of the reasons you should consider becoming a homeowner in 2016:

1. Rent is skyrocketing. Have you been bouncing from home to home every year because your landlord continues to increase rent with each lease renewal? Rent is at an all-time high right now, and chances are you are paying more to rent per month than you would be if you were paying your own mortgage per month. Crazy, huh? Not to mention that what you would be paying monthly as a homeowner gains you equity in the home rather than sending your money to your landlord and gaining THEM equity on THEIR home. 

2. Home prices and interest rates continue to remain low. The market is on the climb as we speak, but it is slow enough at the moment that you can still purchase a home for a lower purchase price and a lower interest rate. Although I didn't experience the Real Estate market in the 1980s, I am told that interest rates were in the high teens. This adds thousands and thousands of dollars onto what you end up paying for your home at the end of the day. We are very fortunate to find ourselves in a market where interest rates are low enough that they will not be adding that kind of burden on our bank accounts. Pair that with lower home listing prices, and it is a combination we are not guaranteed to see in years to come.

3. There are very diverse loan options that lenders are offering now to get more people to be capable of achieving home ownership. You no longer NEED the coveted 20% down when you purchase the home. Some loans cater to the first time home buyer and do not require the borrower to have stellar credit or a ton of money saved away. Others allow you to avoid paying insurance on the mortgage which can lessen your monthly payments. Because of these various options, people are pleasantly surprised to find out what they are capable of owning.

I am practicing what I preach in this post as my husband and I are looking to move from our townhome to a single family home. With a baby on the way, 2 dogs, and us 2 adults, upgrading homes never seemed like a better idea. We are taking advantage of the lower home prices and low interest rates and understanding that if we wait another few years until we really have outgrown our townhome, the type of new home that we can afford today because of the low interest rates might not exist, and we may have missed our opportunity. 

Will 2016 be the year that YOU say YES to the ADDRESS? Don't let the opportunities of 2016 pass you by. Contact me today so we can begin to chat about what great things await you this year!

"Where the Magic of Disney meets your Real Estate needs."

Are you ready to start looking for the perfect home? Contact Jackie at 941-356-3956 or jackievoigt@kw.com now!