Is Buying a Home out of Reach?

A report from Realtor.com says 20% of Americans don’t think home ownership is achievable. Maybe this is you. With inflation having driven up day-to-day expenses, saving enough to buy a home is challenging. 

But with the right help, you can still make it happen.There are resources available to make buying a home possible — even if your savings are limited or your credit isn’t perfect. 

Here are three options our clients use to accomplish their goal of becoming homeowners. 

1. FHA Loans

If your down payment savings and your credit score aren’t stellar, an FHA loan could be your best path to buying a home. According to the U.S. Department of Housing and Urban Development (HUD), the biggest benefits of an FHA home loan are:

• Lower Down Payments: FHA loans typically require a smaller down payment than most conventional loans, sometimes as low as 3.5% of the home’s purchase price.

• Lower Credit Score Requirements: FHA loans are designed to help buyers with credit scores that might not qualify for conventional financing. This means, when conventional loans aren’t an option, you may still be able to get an FHA loan.

2. Credit Unions

Unlike banks, credit unions are able to set their own requirements for lending. Often that means friendlier terms and easier qualification for a mortgage. 

With a small deposit into a savings account, you can become a member at NC State Employees Credit Union (SECU) and they offer mortgages to all members. SECU offers loans with 0% down payment, lowering the cash required to buy a home. They also do not require mortgage insurance which means lower closing costs and smaller monthly mortgage payments compared to conventional loans.

3. Home Ownership Assistance Programs

And if you need a more budget-friendly down payment, there are thousands of homeownership assistance programs across the U.S. according to Down Payment Resource. There are multiple programs specifically designed to help with down payments.  North Carolina 1st Home Advantage, National Home Buyers Fund, and Raleigh Homebuyer Fund are three programs providing assistance in the 919.  Eligibility requirements vary so check out all your options to determine your best fit.

If you want to learn more or see what you qualify for, 919 Realty Group can connect you with the right lenders to help you accomplish that goal of buying your first home. 

Bottom Line

If you’re ready to stop wondering if buying a home is possible and start exploring solutions, connect with our team and our preferred lenders to get you started.