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2020 is Your Year to Buy a Home

Are you thinking of buying a home but haven’t pulled the trigger quite yet? Let’s make 2020 your year!

It is a great time for anyone to buy a home, including first-time homebuyers. We have access to mortgage programs with flexible underwriting guidelines and low interest rates. With these flexible guidelines, you too can become a homeowner and realize the tax benefits of owning a home!

Check out the reasons why you should below Arrow pointing down

Low Down Payment Options

If there’s one reason first-time homebuyers avoid buying a home, it’s the lack of a down payment. Fortunately, there are options that require little down payment – in fact, some even require no down payment! We have programs that require down payments ranging from 0% - 3% and there aren’t any tough underwriting requirements making it difficult to get approved.

Many people still believe the 20% down payment myth, letting it stop them from buying a home. Yes, a 20% down payment is nice because you start homeownership off with equity in your home. You may also avoid paying mortgage insurance with a large down payment, but that shouldn’t keep you from buying a home. The insurance can be temporary. As you build equity in your home, you can refinance and eliminate the insurance, but first, you have to buy the home.

If you don’t have a 20% down payment, there are plenty of programs available to you that have affordable mortgage insurance and flexible guidelines. Why not start somewhere? With regular payments, you’ll build equity in your home, but you have to take that first step.

In fact, did you know that the required deposits on a rental can sometimes cost more than a required down payment? Many landlords require you to put down the first and last month’s rent plus a security deposit.

What if you could own a home with no money down? You’d be a homeowner with less money out of your pocket than it costs to rent and you’d stop lining your landlord’s pockets. It’s a win-win situation for you.

Perfect Credit not Required

Believe it or not, you don’t need perfect credit to get a mortgage. We have programs that allow credit scores as low as 580. With that 580 credit score, you only need a 3.5% down payment and the money can be gifted to you from a relative, or from down payment assistance. That means you could have less than perfect credit and spend very little cash out of your own pocket and become a homeowner.

We offer both traditional mortgage programs and government-backed loan programs. The beauty of the government-backed programs is the low down payment requirements and flexible credit requirements they have. We look at your credit history, ensure that you are capable of making your mortgage payments, but don’t focus on the credit score itself too much. Don’t let a low credit score keep you from buying a home.

2-Year Work History not Required

Woman happy to learn their are flexible guidelines for first time homebuyers

Don’t assume because you don’t have a 2-year work history that you can’t get a mortgage. We look at the big picture. Did you attend school and are now working in the field you studied? Are you at a new job but were within the same industry during the last few years? Even if you just switched industries, if you took classes or underwent training to succeed in the position, you may qualify for a mortgage.

Even if you are at a new job, we look at other compensating factors. For example, a borrower with great credit and a decent down payment may not need a very long work history to qualify for a mortgage. Even if you have a lower credit score and a small down payment, government-backed programs offer options for those that haven’t been at their job for two years. It’s all about stability and the likelihood of your job continuing for at least the next three years.

Interest Rates are Low

As interest rates maintain an all time low, it’s a great time to become a homeowner. Low interest rates help you in several ways:

  • Lowers your monthly payment
  • Decreases your debt ratio making you more likely to get approved
  • Allows you to borrow more (qualify for a higher purchase price)
  • Allows you to pay your principal balance off faster

Don’t let the low interest rate environment today pass you by. Interest rates are unpredictable, so why not jump at the chance to secure low rates now? First-time homebuyers and subsequent homebuyers stand to benefit from today’s low rates.

The Tax Benefits of Owning a Home

Finally, there are many tax benefits of owning a home in Palm Beach and Marin County. If you rent, these are benefits your landlord receives on your behalf. It’s time for you to claim these benefits yourself:

  • You may be able to deduct the mortgage interest you pay each year (if you itemize your deductions)
  • You may be able to deduct any mortgage points you pay during the year that you buy the home
  • You may deduct up to $10,000 in real estate taxes paid per year
  • You may get a tax credit for certain energy efficiency changes made to your home
  • You can earn up to $250,000 ($500,000 if married) in capital gains tax-free as long as you live in the home for at least two of the last five years

Consult a tax advisor for details.

Don’t keep renting because you think you’ll never qualify for a mortgage. There are plenty of options available today. Let me help you find the perfect solution that allows you to buy a home. I have access to many programs that help people with low credit scores, no down payment, and short employment histories buy the home of their dreams. Let’s make your 2020 dreams come true too! Click here to see what your options are Arrow pointing to the right Get Pre-Approved