Tempe, AZ (adjoining Phoenix) is home to Arizona State University and enrollment is at an all-time high. In fact, it appears that student enrollment growth at ASU will surpass available housing. Thus, there may be some great opportunities for parents to buy a home in Tempe, Phoenix, or Scottsdale instead of renting.
Annual tuition and cost of living is up. Even if you are fortunate enough t o receive scholarship aid, paying for tuition and housing can be expensive for most families. However, one way that may help hedge the cost of college is actually, buying a home in Tempe versus renting in Tempe while your child is a student at ASU.
If you are a parent with a student who is moving to Tempe, AZ for at least 4 years, buying a Tempe (Phoenix) area condo at today's prices and with all-time low interest rates on fixed rate mortgages may make more sense than renting for students for 4 or 5 years.
If you consider the cost of the mortgage, Phoenix property taxes, homeowners insurance, HOA (condo association dues) and maintenance and potential gain (or loss) over the 4 years of more.
If the the cash flow is about the same as renting and you are optimistic about the long-term growth of the Tempe / Phoenix real estate market, than buying a home in Tempe is probably a good decision.
If you decided to buy a Tempe, AZ home, get the right financing and take advantage of the "kiddie condo" program, there are many benefits of Kiddie Condo programs and buying a home for your future ASU (Tempe) grad.
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A low down payment (as little as 3% of the purchase price).
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A lower, owner-occupied interest rate on the mortgage Vs the higher investment property interest rate.
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Helps the new borrower establish a solid credit rating and get a mortgage to report on their credit for the future building of a FICO score
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at least one borrower must occupy the property as his/her primary residence, but extra bedrooms could be rented out to help cover the cost of the mortgage payments.
- mortgage interest deductions may apply , however please speak with your tax advisor or CPA
- future rental (after your child graduates ASU in Tempe) or selling of a profit
Tempe homes are selling at as much as 30% discount to prices just several years ago. If you are looking for homes in Phoenix, Tempe, Scottsdale, Mesa or any of the other towns that make up greater Phoenix, a purchase of a condo using the kiddie condo program may have more immediate and long term benefits than renting.
If you are looking to buy a home in Tempe or a kiddie condo in greater Phoenix, contact an expert mortgage professionals who can help with FHA loans and kiddie condo loan programs.
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Contact James Wexler (480) 221-8080 for your Phoenix AZ| Scottsdale AZ Real Estate needs
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FHA loans are excellent for those buyers who do not have a substantial down payment or less than stellar credit history. They are very popular here in Mass.