Are You Having Difficulty Saving for a Home? For many, money for a down payment and closing costs is the main obstacle to owning their own home. This Saturday, February 6th, Regina Lockwood of Ferrari-Lund Real Estate and I will be co-hosting a FREE Homebuyer Down Payment Assistance Seminar. CJ Manthe, administer of the Nevada Housing Division and “Home is Possible” Specialist will be our special guest and featured speaker.
Non-Repayable 3-5% Grants
According to a Federal Housing Finance Agency (FHFA) just released Housing Price Index Report, home prices increased 5.9 percent year-over-year in November 2015. As home prices increase, so does rent. Rising rents have made saving difficult and home prices have outpaced people’s ability to save. C“Home is Possible”, the Nevada Housing Division’s down payment assistance program was expanded today to better meet the needs of Nevada’s homebuyers. Some of today’s changes include:
- Manufactured Home Loans allowed for government loan types
- Non-occupant co-borrower now permitted for HFA Preferred Conventional Loans
- Rental income from accessory dwelling allowed for HFA Preferred Conventional Loans
- Expanded homeownership education options to include attendance at a Nevada Housing Division sponsored homebuyer seminar
“Home is Possible” grants are non-repayable, and there is no first time buyer requirement. Grant amounts range from 3% to 5% of your loan amount. Your grant can be applied to both your down payment and closing costs. Maximum financing allows qualified buyers to put as little as 3% down with the Housing Finance Agency (HFA) Conventional loans product, 3.5% down with a FHA loan, and VA and USDA* loans offer 100% financing. USDA loans are only available in rural areas. The Veterans Administration allows qualified veterans to buy a home 2 years after either a foreclosure or short sale. FHA and USDA allow you to purchase a home 3 years after either a foreclosure or short sale. The waiting period begins upon transfer of title.
If you are a qualified veteran or a first time buyer (someone who hasn’t owned a home in the past 3 years) you may be able to combine your grant with the “Home at Last” Mortgage Tax Credit Program for additional savings.
Is this a good time to buy a home? According to Black Knight Financial, a mortgage technology firm, owning a home today is more affordable now than it was 10 years ago. In 2006, a home buyer with the median income, purchasing a median priced home, financed with a 30-year mortgage, was spending 33% of their gross income on their mortgage payment. In December 2015, that number was down to 21%. Black Knight’s analysts believe that this is a limited window. If home prices continue to appreciate at their current rate and mortgage rates increase .5%, twenty two states will be back to their pre-housing bubble average within two years.
If you have been dreaming of owning a home,we hope you be a part of our studio audience this Saturday, January 16th, from 9:00 to 10:00 am. We will be broadcasting live from our “All Things Home” studio located in the Reno Town Mall, 4001 S Virginia St, across from the Atlantis at the corner of Peckham. The broadcast can be heard live on America Matters Media, 1180 am. For additional information, call Regina Lockwood, Ferrari-Lund Real Estate @ 775-843-5133 or Doug Kaller, Academy Mortgage @ 775-250-4421.
This is your chance to talk with the experts and learn about your home buying and finance options. Don’t let the lack of a Down Payment keep you from owning your own home!