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3-2-1- LIFTOFF! Prevent Failure to Launch: Help Your Kid Buy A House This Year

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Real Estate Agent with Blue Cord Realty TN 00273649 * KY 200690

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Original content by Janet Guilbault NMLS #238304

It wasn't THAT long ago that we Baby Boomers worried a lot about our kids.

You know, those irrepressible Generation Y kids who were on the Internet at age 4 and who grew up clicking (my son says I grew up turning dials and that is why his generation is superior different).

Sitting on our own fat bubble- enhanced, low taxed properties, we watched prices spiral out of control here in the San Francisco Bay Area. We believed our children would either:

  1. Never be able to afford a house
  2. Move away forever
  3. Move back in with us (eek!) 

But post meltdown, all of that has changed. And in the wake of economic disaster lies a once in a lifetime opportunity to get junior into his very own house or condo.

This is the year to help your kid become a first time buyer. You snooze, you lose.

No, I cannot promise son will become a handyman or daughter will turn into Martha Stewart. But I can promise you that everyone in the family will look back someday (sooner than you think) and thank their lucky stars you took advantage of a 24 karat golden real estate opportunity to give your child financial stablity.

Why this year? Here are 3 reasons that point directly to the stars being lined up perfectly:

  1. Cheap properties (prices being driven down by foreclosures)
  2. Low fixed rates on old fashioned 30 year mortgages
  3. FHA financing finally has limits high enough to buy in California

As if that isn't ENOUGH, here is your amazing limited time BONUS OFFER: First Time Homebuyer Tax Credit of $8000 is good through the end of the year.

 

The strategy:

  1. GIFT your child the down minimum payment (3.5% of selling price)
  2. ASK the seller to pay the closing costs in your offer, so your kid needs NO cash at all
  3. SNAG a cheap property in the best location your kid can afford

Be prepared for this:

  1. MULTIPLE OFFERS on lender foreclosed properties for sale
  2. SELLERS insisting on an approval with a LENDER (not just a letter from the mortgage person)
  3. A LONGER time line than you are expecting

10 things not to worry about:

  1. Rates will go lower. FHA loans have the ability to be easily re-written if rates drop (streamline refinance) 
  2. Real estate will be cheaper. So what? Think long term.
  3. Your kid isn't "ready". Most first time buyers do not have the perspective to understand the benefit of the tax credit, or the silver lining of economic downturns. Come to think of it, you probably weren't "ready" when he was born.
  4. Going on the loan with your kid. If your kid has no job now, or just can't afford to buy, you can co-sign.
  5. Finding the "perfect" house/condo. It is a starter house, for crying out loud. Do not expect lender foreclosures to be pretty
  6. FHA closing costs are "too high". Yep, FHA will have slightly higher closing costs than conventional. Seller may not pay closing costs. You can gift your kid closing costs, too.
  7. What if my kid loses his job?  "What if's" are the biggest reason for missed opportunities!
  8. The real estate market is just too confusing! That is why you should find a great real estate agent
  9. Getting a loan is a big hassle! Get preapproved first with a great mortgage person
  10. Where will I get the cash to help my kid? How about an equity line or retirement account? Maybe Grandma has the money?

Get your kid set and maybe you could move in with him someday. (double eek!)

Maybe not.

 

 

Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area

 

 

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Think Clarksville * Think Fort Campbell * Think Real Estate 

Think Blue Cord Realty * Think Roland

Roland Woodworth

Licensed in both Tennessee & Kentucky. Please don't keep me a secret, if you know anyone looking to BUY or SELL, Please send me their contact informtion and give them my name and number.

View my website at Clarksville Home Information or Fort Campbell Housing

 Roland Woodworth is a member of NAR's Short Sales & Foreclosure Resource

 

Roland Woodworth, REALTOR ® Blue Cord Realty

Call: 931-320-9411

E-Fax: 866-596-2172

  

Clarksville TN Homes For Sale, Clarksville TN - Roland Woodworth, REALTOR

I specialize in helping families relocate to and from the Clarksville, TN and Oak Grove, KY - Fort Campbell, KY and the surrounding areas. I have the tools to market your Home For Sale including New Construction, Short Sales, Foreclosures, Distressed Properties. I'm a US Army Veteran still serving the Clarksville, TN and Ft Campbell, KY area. Looking to sell your home ,give me a call at 931-320-9411

TN Lic # 273649  -  KY Lic # 57120

Blue Cord Realty

1191 Fort Campbell Blvd. Suite C.  Clarksville, TN 37042

 

Each Office is Independently Owned & Operated

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