Purchase a Home with Zero Down & Break Out Of The Renter Cycle
While there are a few advantages to renting a home or an apartment, most financial advisors would agree, owning a home of your own is a pretty solid investment. You have to have a place to live so you might as well own it. Owning a home free and clear without the burden of a mortgage would be ideal out of the gate, but let’s be honest, saving every penny you earn for 20 years while you write a monthly rent check (which is probably pretty similar to a mortgage payment on a similar property) really is not all that practical. The vast majority of us will have to lean on a mortgage company for a mortgage to finance our purchase and that is okay. With rates as low as they are right now, owning a home is extremely affordable and more times than not, outweighs many, if not all of the perks that come with renting.
Now that we have that out of the way, let’s talk about one of the biggest obstacles that first time/recently returned to the real estate market buyers encounter – the down payment. While there are a few really good zero down options out there for veterans (VA Loan) and those looking to live in more rural areas(USDA Loan), buyers without significant funds to draw off due to limited income or large monthly expenses, typically get stuck in what I have termed, “The renter cycle.” What is the renter cycle? The renter cycle refers to any life or economic event that reduces your cash reserves to the point where purchasing a home is not an option. When money for a down payment is not available people typically tend to renew their lease contract and continue to rent, sometimes forever! They are stuck in a cycle and don’t know how to get out!
Having children, losing an income, dealing with medical expenses, going back to school, getting laid off, repairing vehicle issues, getting divorced, declaring bankruptcy and any combination of the aforementioned, are all on the short list of things that I hear almost on a daily basis as a loan officer. While these are difficult things to deal with, they are by no means a life sentence to the Renter Cycle. You can break out without winning the lottery or inheriting a truck full of money.
There are programs readily available and as long as you make less than $88,340 per year you are very likely to qualify. No more excuses!
The Arizona State Legislature has allowed home buyers within the state of Arizona to access non-repaid grant funds to cover the down payment and a portion of the closing costs. This program is known as the Arizona Home in 5 for homes in Maricopa County and Arizona Home Plus for homes outside of Maricopa County. Accessing these funds is one of the best ways to break out of the renter cycle because you can do it RIGHT NOW! This is free money that the state is giving away to qualified buyers in order to stimulate the real estate market and allow more Arizonans to achieve their home ownership dreams. With a little coordination, we can negotiate a seller credit to cover the remaining closing so that your cost to home ownership truly comes out to a number as close to zero as we possibly can.
Here are the qualifying factors:
- Must have a qualifying credit score of 640 and above. If you aren’t there today I can help you get there!
- Must make less than $88,340 per year. If you make more than this it is likely that you can quickly save for the down payment on your own and other programs will be available to better fit your needs.
- Must purchase home for less than $280,000. There are plenty of houses for sale under this price point!
After you have an accepted contract you will need to attend a home buyer’s education course over the phone. It takes about an hour and is really simple!
Easy stuff! While this program is not for everyone, there will be situations where a buyer would be better served with another mortgage product. This is a great place to start and I can help you to understand why. Like I said before, no more excuses!!!
Make the decision today to invest in yourself! Stop paying your landlord’s mortgage and start paying your own!
Give me a call on my cell phone at 480-250-6123 or shoot me an email at [email protected] to see what it would take for you use this program and BREAK OUT OF THE RENTER CYCLE TODAY!
Disclosure: This is not an offer to enter into a loan agreement. Not all customers will qualify. Information, rates, and programs are subject to change without notice. All products are subject to credit and property approval. Not all products are available for all loan amounts. Other restrictions and limitations apply. Sun American Mortgage Company NMLS #160265 | AZ-BK #7548
