Loan limits will likely go up to $625K in 2022, but FHFA hasn’t announced it yet. Still, higher home values have convinced some lenders to boost loan limits now.WASHINGTON –
38% of Renters Can Afford to Buy a Home ☘ Hoey Team ☘ exp Realty 🌴 Southwest Florida 🌴
Dated: December 5 2020
The number of renters who can afford a home has increased over the past two years, but achieving homeownership is still difficult for renters in saving up for a down payment, according to a recent post at the National Association of REALTORS®’ Economists’ Outlook blog.
Thirty-eight percent of renters can afford to buy a home, but they may need 13 years of savings to make a 10% down payment, according to NAR’s analysis.
“As mortgage rates have fallen and incomes have increased, the fraction of renters who can afford to purchase a home has increased from 33% in 2018 to 38% as of 2020 Q3,” Scholastica “Gay” Cororaton, a research economist for NAR, writes at the blog.
Some of the metro areas seeing the highest percentage of renter households now able to afford to buy a home in the third quarter include Topeka, Kan. (64.5% of renter households can afford to buy a home); Waterloo-Cedar Falls, Iowa (63.3%); Elmira, N.Y. (62.4%); Fond du Lac, Wis. (60.9%); Decatur, Ill. (60.7%); Peoria, Ill. (60.7%); and Wichita Falls, Texas (59.5%).
While the home purchase has become more affordable, monthly mortgage payments and down payments have not. As of the third quarter, a renter with a family income of $49,242 or below would not be able to afford a typical single-family home valued at $313,500, according to NAR’s analysis. The mortgage payment would account for 29% of income, which is above the 25% threshold that most financial experts consider affordable.
Also, a renter will need about $30,000 for a 10% down payment, requiring an estimated 13 years of saving.
Still, the FHA and other lending programs offer 3% loans to first-time buyers. Several loan programs offer down payment assistance that real estate pros can share with their customers who are looking to buy but are unable to save for the down payment
Here in Southwest Florida 🌴 especially as people continue to move / relocate to the area from other parts of the US, inventory remains low overall, but we do continue to list and sell homes; both Single family, and Condo type. We have also seen an uptake in people planning ahead, and buying that second home now, rather than waitiang as they were planning to do. Low interest rates are probably helping with this additionally. Low inventory is the greatest chalenge for buyers.
At our Real Estate Team; Hoey Team ☘ we have been succesfully working 100% virtually / remotely for the past number of years as we continue to grow; i'm glad we already had systems in place to better help sellers and buyer with goal posts continually moving in our industry.
Article content from our NAR (National Association of REALTORS) Newsletter Magazine, and from other sources including Hoey Team ☘ exp Realty and from Freddie Mac
For those Living in or Visiting Southwest Florida wanting additional resources, or a list of places to see / visit: www.VisitCollier.Com Feel free to share this resource page with others 🌴
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