Since 2002, June has been recognized as National Homeownership Month. Each year, we spend the month recognizing the work done to help families attain affordable and sustainable homeownership.
With interest rates at a record high, some people may be hesitant of purchasing a new home. When paired with the ever-increasing price of homes, it isn’t much of a shock that homeowners are being more selective as they house hunt.
However, the homeownership rate in America can give those looking for their next home hope. According to the U.S. Census Bureau, the homeownership rate was 65.4% in the first quarter of 2022. If you’re planning on buying a home this year, there are a few things to keep in mind.
KNOW YOUR RIGHTS AND WHAT YOU CAN AFFORD
The Fair Housing Act protects individuals from discrimination by direct providers of housing. This means that real estate companies, banks, etc., cannot make housing unavailable to a person based on their race, religion, sex (including gender identity and sexual orientation), national origin, familial status or disability. It ensures that people seeking to buy, rent or finance a home are treated equally.
Next, it’s important to know how much home you can afford. A home affordability calculator can help you create your ideal price range before you begin house hunting. Shopping for your next home is easier when you know what price works for your finances.
FIND DOWNPAYMENT AND CLOSING COSTS ASSISTANCE PROGRAMS
Does the thought of making a down payment or finding cash for closing costs keep you up at night? Let this ease your mind—you may qualify for a down payment or closing cost assistance program.
These programs have been designed to make homeownership more affordable. Some feature low- to no-down payment options. Others are connected to government-backed loans. Assistance programs include:
- FHA Loan Program — Allows for down payments as low as 3.5% and can be used for primary residences with 1–4 units.
- VA Loan Guaranty — Available to veterans or active-duty military borrowers and has no down payment requirements.
- USDA Home Loan — Created for borrowers in less dense, rural and suburban areas of the U.S. and allows for up to 100% financing.
These are just a few of the assistance programs available. To learn more about these programs, click here.
GET APPROVED FOR A MORTGAGE
In a competitive housing market, it’s always important to stand out from other buyers. By getting approved for a home loan, you can make an offer on a home that is as strong as a cash offer. As an added bonus, you can shop confidently because you will know exactly how much you can afford. Also, by taking the time to get approved, sellers will see that you are a serious buyer.
If you’re ready to shop for your next home, contact your local PrimeLending loan expert to get started.
