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 Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, and Nashville at (615) 810-8555. You can always apply online with our 5-Minute Loan Approval at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?