“Not Ready” to buy a home? Let’s change that!
The most common response I hear as a realtor is “We’re just not ready yet.” or “I don’t think I’ll ever be in the position to buy a house.” As someone who felt this way just a few years ago, I completely understand where those thoughts and feelings are coming from. These aren’t the same times that our grandparents or even some of our parents were living in, where one steady income could easily buy a home, feed multiple mouths, and still have a little left over to go on a family vacation every now and then. Cost of living has gone up, housing prices continue to rise, all while the Federal Minimum Wage is still set at $7.25 – the same it was in 2009.
So how is it possible? How can someone buy a home in such crazy times? I wish the answer was as simple as it was 30 years ago, but thankfully in the great state of Oregon, we have options to make the home buying process easier and more affordable for many first-time home buyers.
The biggest obstacle in buying a home tends to be the down-payment. First-time buyers are usually required to put down 3.5% of the sale price in order to qualify for their loan. For a $400,000 house, that would be $14,000 down. I know most of us don’t just have an extra 15-20k just sitting in their bank account ready to spend, but if you do, that’s great! You’re even closer to being ready to purchase your first home. For those that are unable to come up with that 3.5%, there are other options.
Take Habitat For Humanity as an example, an organization working hard to bring affordable housing to low and moderate-income level families. In their program, instead of a down payment, they have the purchaser put in 200 hours of “sweat equity”. This could be volunteering in one of their stores, helping out in the community, or even building your own home- how cool is that?
The Portland Community Reinvestment Initiative is one of many other organizations that offers financial assistance. The program provides closing costs and down payment assistance to eligible first-time and first-generation homebuyers who are at or below 100% of area median income. The maximum amount of DPA funds available to each eligible homebuyer is up to $60,000 or 20% of the purchase price, whichever is less, depending on the specific program and eligibility requirements.
Other organizations that offer similar programs include African American Alliance for Homeownership, Portland Housing Center, and Proud Ground. They also provide classes for future buyers, to prepare you for the process and answer any questions you may have.
Let’s face it. Homes aren’t going to get cheaper.
Sure, the best time to buy a house may have been 25 years ago. But when’s the next best time to buy? Today. Call me, let’s make your home-owning dreams come true.
Erika Lively, Oregon Realtor