Renters are getting squeezed for increasing rent, while the cost of buying a house is rising.
Home prices in Northern Virginia have been rising 3%-5% per year since the crash of 2005, while rental rates are up 10%-15% per year.
Renters who are reluctant to buy a home may wait too long, and watch their dream slip away.
Why are renters saying "No" to home ownership?
In most cases, they aren't saying "No"... They're saying "Know", as in, "I don't know enough to move forward". If they would take an hour to meet with a lender or Realtor, they could allay all their fears.
Rising house prices bring larger down payments, and higher mortgage payments. Lots of renters are military veterans who do not comprehend how their GI Bill benefits will let them buy with zero down payment.
Most renters can qualify for government-insured low down payment FHA loan. For example, the down payment on a $350,000 house with an FHA home loan is just 3.5%, or $12,250. Moreover, the down payment doesn't have to come from the buyers. A portion or all of the down payment can be a gift from a relative.
I know a lot of neighborhoods where the rent rates are higher than a home loan payment would be on the same house. For example, the total house payment with an FHA loan would be $2,017. Rent on the same house in the neighborhood runs $2,700.
If you are paying more than $1,800 rent, you could cut the cost of housing by a few hundred dollars per month for the same house. Or, you could pay an $1,800 mortgage payment, and move up to a larger house in a nice neighborhood.
You can get a FREE, over-the-phone evaluation of your buying power by contacting Erick Blackwelder at 703-677-1120. Or you can get an evaluation by email when you go to Erick's website.
Call or text Erick Blackwelder right now for help finding a home, or help selling your house.
Don't worry... Erick doesn't bite, and you won't get a sales pitch. Text or call Erick now at 703-677-1120 for a FREE consultation.
CLICK HERE NOW to search the Multiple Listing Service (MLS) for homes for sale in and around Woodbridge, Lorton, and Mount Vernon.
Exit Realty Associates
8998C Lorton Station Blvd
Lorton, VA 22079
Equal Housing Opportunity
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Click the link above to email a question to me or call me now at 703-677-1120.
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