Keeping a $20,000 House at $20,000 Market Value

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Real Estate Agent with Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton Licensed in GA & AL

Great information on low priced homes, and the issues with financing them.  Thanks for the info Pamela!!

If you need assistance on a home in West GA or East AL, please give me a call.  Karen Steed 678-521-3585 (cell) or 770-574-9221 (office)

 

Keeping a $20,000 House at $20,000 Market Value

I just love this idea: affordable housing with a unique architectural design that makes home ownership possible for those on fixed incomes in rural areas.

Auburn University started Rural Studio in 1993 as a design challenge for students to perfect a 550 square foot home and to give back to the community.

The problem is the $20,000 homes are increasing in market value. The Studio wants to keep the price at $20,000 so that mortgage payments are affordable for those on social security. As I know from experience, the cost for a loan is about the same whether the mortgage is $20,000 or $200,000. When home prices were unbelievably low in some areas just a few years ago, unless home buyers were paying all cash, it was impossible to buy with a mortgage because lenders just don’t lend on lower end purchase prices.     

To date the Studio has built 12 homes for Black Belt Alabama and plan to build 8 more from fundraising efforts. They plan to put their design idea on the market. 

It would be nice to see a bank step up and offer low mortgage loans to achieve affordable home ownership for those on lower, fixed incomes. 

 

Pamela Seley, REALTOR®Pamela Seley, REALTOR® - REALTY EXECUTIVES OTF 

31213 Temecula Valley Parkway, #100, Temecula, California 92592 

REALTY EXECUTIVES of Temecula Valley

Dir 951.491.4063

CA BRE lic # 01824145 | Representing home sellers and buyers since 2007 | Experienced short sale negotiator and agent, buying and selling distressed properties, and standard equity sales. | Search Temecula Valley California homes for sale 

 

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Rainmaker
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Barbara Altieri
Kinard Realty Group Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Karen -- That would make sense. Definitely a VERY affordable option for those on fixed incomes, but they have to be able to pay for it!

Dec 09, 2013 09:39 AM #1
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Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-755-2905

Karen, I don't get to see Pamela's posts enough and she's SO SAVVY. Thanks for bringing this to my attention and resurrecting my need to go back to her blogs more often.

Feb 01, 2014 12:43 PM #2
Rainmaker
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Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty

So true...Pam is really well informed.  She brings up a great point about the inability of buyers to actually be able to get a loan on a house they can truly afford.

Feb 01, 2014 01:09 PM #3
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1~Judi Barrett
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

this is an awesome idea that the university came up with.  Hope they are able to keep the price at $20,000.00

Feb 08, 2014 08:25 AM #4
Rainer
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Christine Yedo Johnson
RE/MAX Unlimited Inc. - Aurora, CO
ABR CRS CNE SFR

Wow,  $20,000 is a very affordable home even in most parts of the US.  Even more so considering you are writing from CA!

Jan 09, 2015 06:03 AM #5
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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Nice choice for a reblog!  There are lending options out there, but they'd likely be variable rates with larger down payment requirements (like a line of credit).  Options are definitely limited at that price point, but this is a cool idea!

Mar 12, 2015 07:03 AM #6
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Rainmaker
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Karen Steed

Associate Broker Haralson Realty
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