Help Give Your Kids and Grandkids A Chance
I am reaching out to all parents and grandparents who want to help give their children and grandchildren a real advantage in life. Buying a home is rarely on the minds of our younger generation and this is partially because they believe that the entrance to home ownership is actually more difficult than it really is.
During the past 22 years in the real estate business I can say with 100% confidence that the majority of the home buyers I speak with are worried about how they will be able to meet the down payment requirement for their mortgage. This is without a doubt the biggest road block in the minds of buyers. This minor obstacle is easily solved with some creative thinking and a little assistance from mom & dad, grandma and grandpa and even a brother or sister.
The most popular home loan today for first time buyers is an FHA insured home loan. FHA is a great loan program because FHA only requires a 3.5% down payment and the best part is that the entire down payment can be a gift from an immediate family member. This allows the parents to assist their children to buy their first home much earlier in life and essentially skip the need for them to waste their money on a rental. This can result in huge financial savings for their children and it allows them to build equity much faster than they could otherwise.
A few factors to consider about the current housing market:
- Interest rates are at a 40 year low making homes even more affordable
- Fixed interest rate home mortgages are readily available
- Mortgages with fixed rates help protect against future inflation
- Home values have fallen which makes it an ideal time to purchase.
- Home ownership often creates stability, security and the home can become an investment like savings account.
- When you combine the lower home prices that are available today with the lowest fixed rate mortgages since the 1960's it becomes amazingly clear that it is the right time to buy a home.
