How Would You Know If Buying A Home Wasn’t Possible?
Indeed, how would you know?
Some objections to purchase are:
- I don’t have a down payment saved.
- I have student loans
- Buying isn’t for people like me
- I can’t afford it
- Owning is for rich people
- Nobody in my family has ever owned a home
- Buying a home isn’t just for the rich and famous!!
This year Anthony, who works for the City of Baltimore making $26400 a year purchased a home priced at $65,000. Anthony took a Home Buyer Education class and qualified for $5,000 in Live Near Your Work money because he works for the City. Anthony also qualified for a Community Development Block Grant of $5,000 for making less than $41,500 a year. And, the house was on the Vacant property list and had been registered as vacant for over year so qualified for a Vacant to Value Booster grant of a further $10,000. Anthony’s monthly mortgage payment including taxes and insurance is $355. In five years each of those grants will roll off and he’ll only owe the principle balance of his mortgage. And, the lender contributed money towards Anthony’s closing costs too.
Lynette purchased a home in West Baltimore for $195,000. Lynette received a $10,000 vacant to value grant and $5,000 Maryland Mortgage Program loan. Lynette got into her house for $1,000 of her own money.
Diego and Tiangay bought a home in Randallstown for $235,000 and got $7,500 in Live Near Your Work and $5,000 Maryland Mortgage Program funds and purchased their home for an investment of $1,000.
Antwan and Kimberly purchased their home in West Baltimore for $145,000. They qualified for the loan based on Antwan’s income only. They received Live Near Your Work funds and Maryland Mortgage Program money as well.
Working with the right Realtor and the right Lender is the key to purchasing a home for little or no money down. Not every lender works with credit scores below 680, not every lender works with buyers who have student loans. Some lenders work with credit repair and help buyers prepare to purchase a home. And, not every Realtor is familiar with down payment assistance programs. The key to a successful transaction is having the right players on your team.
You can also read more about some of the incentive programs in an earlier post entitled: B-Hip - Baltimore Homeownership Incentive Program.
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