“Since 2011, the share of first-time home buyers has been under the historical norm of 40% as buyers face tight inventory, rising home prices, rising rents and high student debt loads.”
That said, if you’re looking to purchase your first home, here are two things you can consider to help make your dreams a reality.
Save Money with First-Time Homebuyer Programs
Being able to pay for the initial costs and fees associated with homeownership can feel like a major hurdle. Whether that’s getting a loan, being able to put together a down payment, or having money for closing costs – there are a variety of expenses that can make buying your first home feel challenging.
Fortunately, there are a lot of public and private first-time homebuyer programs that can help you get a loan with little-to-no money upfront. CNET explains:
“A first-time homebuyer program can help make homeownership more affordable and accessible by offering lower mortgage rates, down payment assistance, and tax incentives.”
As Bankrate informs us, many of these programs are offered by state and local governments:
“Many states and local governments have programs that offer down payment or closing cost assistance– either low-interest-rate loans, deferred loans or even forgivable loans (aka grants) – to people looking to buy their first house . . .”
To take advantage of these programs, contact the housing authority in your state and browse sites like Down Payment Resource.
The Supply of Homes for Sale Is Low, So Explore Every Possibility
It’s a sellers’ market, meaning there aren’t enough homes to meet buyer demand. How can you be sure you’re doing everything possible to find a home that works for you? First, work with a trusted real estate professional to help you locate both on - and off-market properties you might miss. They will also help you craft a successful offer.
You can increase your options by considering condominiums (condos) and townhomes. U.S. News reports these housing types are often less expensive than single-family homes:
“Condos are usually less expensive than standalone houses. . . They are also less expensive to insure.”
One reason why they may be more affordable is because they’re often smaller. But they still allow you to get your foot in the door and achieve your dream of owning and building equity. Beyond that, another major perk is they typically require less maintenance. As U.S. News further states in the same article:
“The strongest reason for purchasing a condo is that the condo association usually covers all external maintenance, including landscaping, pool maintenance, external painting, paving, trash pickup, building insurance, and more. This fee may also cover internal maintenance, such as gas, electric, plumbing, HVAC, and other mechanical systems.”
Townhomes and condos are great ways to get into homeownership. Owning your home allows you to build equity, increase your net worth, and can fuel a future move.
The best way to ensure you’re set up for success, especially when starting out, is to work with a trusted real estate professional. They can educate you on the home-buying process, help you understand your local area to find options that are right for you, and coach you through making an offer in a competitive market.
Bottom Line
Today’s housing market provides some challenges for first-time homebuyers. But there are still ways to achieve your goals, like utilizing first-time homebuyer programs and considering all your housing options.
For all the right moves, you need The Hudson Advantage! If you want to get into your first home, contact us today at 704-659-5056 or chat on our website!
