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Delayed Ownership Could Exacerbate Wealth Disparities

NAR Daily News Magazine - July 12, 2018 - 1:00am

Serious long-term economic effects could emerge as millennials continue to put off homeownership.

Categories: Real Estate

How Will Bike-Sharing Change Cities?

NAR Daily News Magazine - July 11, 2018 - 1:00am

With car ride-sharing company Lyft's acquisition of bike-sharing company Motivate, will residents gain flexibility in their choice of neighborhoods to inhabit?

Categories: Real Estate

The 10 Most Undervalued Cities in 2018 for House Hunters

NAR Daily News Magazine - July 11, 2018 - 1:00am

These cities don’t just offer bargains but also rate high on livability.

Categories: Real Estate

Do ARMs Still Spook Borrowers?

NAR Daily News Magazine - July 11, 2018 - 1:00am

Even with lower introductory rates, some borrowers may be cautious over adjustable rate mortgages since the housing crisis.

Categories: Real Estate

Loan Demand Takes Sudden Leap From Home Buyers

NAR Daily News Magazine - July 11, 2018 - 1:00am

Some recent inventory relief in housing may be the main factor behind the latest rise in mortgage applications, economists say.

Categories: Real Estate

Wall Street Is Taking an Even Bigger Bet on Rentals

NAR Daily News Magazine - July 11, 2018 - 1:00am

Investors are bullish that more Americans will choose to be renters, and they’re buying up even more single-family homes to make sure they are well ahead of the trend.

Categories: Real Estate

3 Vintage Kitchen Designs Making a Comeback

NAR Daily News Magazine - July 11, 2018 - 1:00am

Several vintage and retro elements from the 1960s or even 1930s are oozing back into kitchen design.

Categories: Real Estate

3 Tips for Property Owners Handling Graffiti

NAR Daily News Magazine - July 10, 2018 - 1:00am

First, you must determine if the street art was legally created before renovating or demolishing the building.

Categories: Real Estate

Bargain Hunters Are Eyeing Puerto Rico

NAR Daily News Magazine - July 10, 2018 - 1:00am

Prices on the island are about half of what they were eight years ago, as recovery continues from Hurricane Maria and a lingering recession. But some shoppers see an opportunity.

Categories: Real Estate

How Long Does it Take to Build a Single-Family Home?

NAR Daily News Magazine - July 10, 2018 - 1:00am

Buyers who want to start a house from scratch should gear up for a long wait.

Categories: Real Estate

4 Common Regrets of Buyers With Kids

NAR Daily News Magazine - July 10, 2018 - 1:00am

Being close to good schools and having space for a nursery are both important considerations for home-shopping parents. But some could feel remorse later on after overlooking other factors.

Categories: Real Estate

Homeowners Have Record Amounts of Unused Equity

NAR Daily News Magazine - July 10, 2018 - 1:00am

Many owners may be unaware of how rich they really are from appreciating home values.

Categories: Real Estate

Survey: Consumers Detail Their Perfect Home

NAR Daily News Magazine - July 10, 2018 - 1:00am

Americans have big aspirations when it comes to their dream house. A new survey shows their preferences.

Categories: Real Estate

Lake Towns With Best Bargains on Homes

NAR Daily News Magazine - July 9, 2018 - 1:00am

Waterfront property is a hot commodity, but finding an affordable place with a view can prove challenging.

Categories: Real Estate

National Average Rent Surges to Record High

NAR Daily News Magazine - July 9, 2018 - 1:00am

After a brief slowdown in the growth of rental prices, they were back on the rise last month.

Categories: Real Estate

Big Investors Eye Student Housing as Safety Net

NAR Daily News Magazine - July 9, 2018 - 1:00am

As rising home prices tamp down affordable investments, companies continue to see a steady return on rentals in campus communities.

Categories: Real Estate

Where Million-Dollar Homes Are a Dime a Dozen

NAR Daily News Magazine - July 9, 2018 - 1:00am

Find out which areas of the country have the largest and smallest shares of homes worth more than $1 million.

Categories: Real Estate

Why Buying a Home Is Becoming More Urgent

NAR Daily News Magazine - July 9, 2018 - 1:00am

If your clients are on the fence, these issues may prompt them to get more serious about their real estate search.

Categories: Real Estate

Study: Homes With Farmhouse Design Fetch Premium

NAR Daily News Magazine - July 9, 2018 - 1:00am

Listings with descriptors such as “barn doors,” “exposed beams,” and “free-standing tubs” are getting lots of love from prospective buyers.

Categories: Real Estate

Buyers: Challenged by Student Debt? Consider Down Payment Programs

RisMedia Buying 101 - July 8, 2018 - 1:02pm

Student loan debt is one of the biggest factors impacting millennials’ ability to purchase a home. According to the National Association of REALTORS® (NAR), 80 percent of millennials do not own a home, and, of that, 83 percent say student loan debt is impacting their ability to buy. Millennials expect to be delayed from home-buying for a median of seven years, the NAR research shows.

There are alternatives, however, that millennials may not know about. In fact, according to a 2016 ATTOM Data Solutions survey, few buyers and real estate agents know about the close to 2,500—mostly local—down payment assistance programs. Across the 513 counties surveyed in the ATTOM Data Solutions report, buyers that used these programs saved, on average, $17,766 over the life of their loan.

From offerings that benefit first-time homebuyers to options for refinancing costly student loan interest rates, it’s important that today’s homebuyer is aware of all the viable options for purchasing a home.

What’s Out There?
For consumers who are having trouble saving for a large enough down payment, there are plenty of options that offer grants or down payment assistance. The National Homebuyers Fund (NHF), for example, has multi-state Down Payment Assistance (DPA) programs that offer closing assistance or down payment grants for up to 5 percent of the loan amount.

The U.S. Department of Agriculture (USDA) also has low- and no-down payment options via its Single Family Housing Guaranteed Loan Program, which assists lenders in offering low- and moderate-income households with purchasing opportunities in rural areas, for which closing costs and other related expenses can be rolled into the loan.

Additionally, there are more localized options available on a state-by-state basis. Here are a few examples:

  • Baltimore, Md./Washington, D.C. – The Maryland Mortgage Program offers a discounted mortgage rate and up to $5,000 in down payment assistance when consumers purchase in a sustainable community.
  • Ohio Grants for Grads offers reduced-rate mortgages for first-time homebuyers who’ve earned their associate, bachelor, master or doctorate degrees within the last four years.
  • Rhode Island – The First Down Program allows first-time homebuyers to purchase a one- to four-family home or condominium with down payment assistance of $7,500, forgivable after five years of owning the home as a primary residence.

More and more companies are introducing homebuyer assistance programs to tackle the student loan debt challenge that many of today’s buyers are facing, as well; however, buyers and agents should first consult a financial expert before participating in or recommending these programs. For example, the student loan cash-out refinance that multiple lenders offer, which allows homebuyers to use their equity to pay off high-interest student loans, may not make as much financial sense with the introduction of the new tax bill. as home equity financing is no longer tax-deductible.

With other incentive programs, such as the Eagle Home Mortgage’s Student Loan Debt Mortgage Program, homeowners can pay off outstanding student loan debt (up to $13,000 for this specific program) by redirecting 3 percent of their purchase price to student debt payoff when buying a new home from the home builder. Buyers should carefully assess whether these programs are financially worthwhile.

These are just a sampling of the available down payment assistance and grant programs that can help consumers with high student loan debt achieve their homeownership dream. It’s imperative that real estate agents research these offerings in order to assist consumers who believe homeownership is still out of reach.

Liz Dominguez is RISMedia’s associate content editor. Email her your real estate news ideas at ldominguez@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

The post Buyers: Challenged by Student Debt? Consider Down Payment Programs appeared first on RISMedia.

Categories: Real Estate

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