Is Now the Time for Millenials in the DFW real estate market?

As a fellow millenial here, it has taken time to get others in my age range excited about homeownership. We know it should or could be stuff that we can do yet we feel so bottled down with debt that it isn’t looked at as an option. I am here to break it to you. We can, YES WE CAN, become homeowners. If you can pay rent, you can purchase a home.  We can have the granite countertops, hardwood floors (that’s truly laminate in your apartment…trust me), plush carpet, white cabinets, and Joanna’s shiplap in our home. We tend to think that student loans stop us from purchasing a home OR that credit cards prevent us too. If you have decent credit, say a 620 or higher, you have options in these streets. Conventional loan programs such as Fannie Mae and Freddie Mac has loosening guidelines to help those with student loans become homeowners.

As the Queen of Resources, I’m here to tell you that there are ways to get into a home and the market is becoming more friendly to first time buyers especially those who have felt like the market didn’t favor them.

For the past two years, it seems as if the prices have doubled making homeownership out of reach. I am here to let you know today that the stars are starting to align. Buyers now have options in today’s market. This is finally your chance to get into the market and get the home you love.

Builders are starting to take notice too as they have since left the starter home phase and went straight to move-up homes which start in the mid-300s. They are now creating divisions within their brand that caters to millenials and first time homebuyers. You will see brand new homes now starting in the high 100s or low $200s.

 

WHAT CAN I AFFORD BASED ON MY RENT?

The next thing that has most people my age on the fence of homeownership is should they rent or buy? How does that payment change from my rental payment? Let’s look at it like this:

Rent: 2 Bedrooom, 2 Bathroom = $1500/month

Home Purchase: 3 Bedroom, 2 Bathroom = $192,307 ~ $1500 mortgage payment

That’s an extra bedroom, more space in the home, as well as a backyard for the price of your rent.

Winn Ridge currently has floorplans with the price of the home at $194,000. With home prices, every $1000 is only $5-7. That means that a home at $194K is approximately $1510. This calculation is based on putting the minimum down on a home (3-5% of sales price). For $1600/month for a mortgage payment, we can estimate a home at $205,000.

THAT’S GREAT AND ALL BUT WHO HAS DOWN PAYMENT MONEY?

I tell my clients that if down payment is their struggle then we can find them money for their home.  HELLO!!!! Queen of Resources here and where there is a will there is most definitely a way. Plus, I have 9 Ways to Fund a Down Payment laid out for you already. There are lenders who have 1% down programs on a conventional loan. There are USDA programs which is 100% financing meaning NO down payments. Disclaimer: USDA loans can only be used to purchase a home in a rural area. However, the pace of growth in DFW opens a LOT of cities/towns for USDA. Ever heard of Little Elm or Prosper? Did you serve our country? Thank you for your service and here’s the BEST loan product out there for doing so called the VA Loan. The VA loan is similar to USDA which is 100% financing = $0 down payment.

Buyers with particular professions can also qualify for loan programs by lenders that may waive lender fees or give them down payment assistance funds to get them in the home. Basically, if you want a home and are willing and able to get one, the SUPPLY is available. The time is NOW.

 

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