While home values are rising quickly, the demand for homes is also raising rent prices through the roof and really putting a squeeze on renters. Rents are rising across the board, and the real takeaway is that renting a home is too expensive for what you are getting – for a similar price you can buy a house.
Rent, of course, gives you nothing but a roof over your head. You build no value or wealth, and own nothing at the end of the day. As renters pay more and more for their homes, the value that they get for their dollar decreases quickly from there, and eventually stops being worth it.
However, saving for a down payment can be difficult as well.
Luckily, the 20% down payment for a conventional loan is no longer the only entry point for home purchases. There are multiple loan programs for people who need to put a smaller amount down.
FHA Loans are available to everyone and only require a 3.5% down payment. This loan is ideal for low-income borrowers and first-time homebuyers, who may not have the ability to put together a large down payment.
VA Loans, like the Hero.Loan program, are a way for veterans to buy a home without any down payment. It’s open to veterans, active servicemembers, and their families, and it’s the best loan that they can have.
The USDA Loan is another program that can give borrowers in rural areas a low down payment loan.
With rental home supply low, many investors are jumping into the market and buying up the available homes, pushing rental prices higher and higher, and making homes more expensive.
This isn’t a problem that’s going away any time soon, with home inventory still slow to develop in many communities. It’s a great time to buy because rates are at historic levels, but you have to work to get the home that you want.
Get pre-approved for your mortgage today by the best mortgage lender in Alabama, Mike Carey’s Alabama Loan Experts Team in Gulf Shores (901) 619-3665 or visit AlabamaLoanExperts.com to apply now. Alabama Loan Experts has the lowest rates on Conventional, FHA, Mortgage Refinances, Jumbo Loans, Debt Consolidation Loans, Rate and Term Refinances, Cash Out Refinances, and HARP Loans. We are also the exclusive home for Hero.Loan VA Mortgages and The Bank Statement Mortgage. We will come to you to close your loan. Nobody gets lower mortgage rates on better loans than Alabama Loan Experts.
The Mike Carey Team – Offices Located in Foley and Orange Beach
316 McKenzie St., Suite 118
Foley, Alabama 36535
27250 Perdido Beach Blvd. #F3
Orange Beach, Alabama 36561