Last week, I took a class that gave me a designation called “Affordable Housing Specialist”. This designation means that I am more knowledgeable in the loan programs & grants for first time home buyers, low to moderate income families and others with special needs/interests. One thing I learned, which I guess I knew before this class, was that for many people the median income in Virginia is going down, while the housing prices in many areas of Virginia have gone up over the last few year, which means that today many people are not in a position to buy a home without some help from things like special loans and grants. Although I knew that this was becoming more and more of problem in the Richmond area, this course really did bring this fact home to me. I was amazed to learn about the various loans and grants that are out there to help people get into their first home. In today’s market where there are so many foreclosures, many of which happened because people who did not make a lot of money were put into adjustable rate mortgages that, once the rates reset, they could not afford. I think if some of these buyers were made aware of the various programs that were out there for them to use to get into a home, possibly some of these people would not have lost their homes and gotten their credit records hurt. Between the many grant programs that are out there and the many loan programs that lenders have, such as VHDA loans and MyCommunity loans, it may be possible for a buyer to become a home owner. So if you are thinking of buying a home, and have been worried that you may not be able to afford it because of all the negative news out there, make a few phone calls first. You may be surprised as to what is available to you and you may be surprised that you could possibly be a home owner with a good rate that won’t have a surprise rate adjustment after only a few years. And if you want a referral to a lender who specializes in working with first time homebuyers or who can tell you whether there are grant programs and loans that will allow you to get into homeownership, give me a call or email me. I work with a lender is the top VHDA lender in the Richmond area and who has an extensive knowledge of the different loan & grant programs.
During the course, we also discussed how a seller may be able to offer some incentives to a potential buyer. In this market, where homes are sitting on the market for longer and longer periods of time, the ability to offer a potential buyer a home that could meet the requirements for the buyer to get a downpayment assistance, grant money or special financing is sometimes a better incentive than continually reducing the price of the home. If you have a home that is priced under $180,000, one suggestion is that you have a home inspection done before listing the home, and you complete all repairs, then it may be possible for you to offer your potential buyer a home that could meet the requirements for grant money! Imagine how many buyers you may be able to attract that other sellers may not be able to attract! In this market, that may be a better incentive than continually reducing your price. If you would like to know more about how you could offer this type of incentive to your buyers, please feel free to call or email me and I would be happy to discuss this with you.
As always, I hope you will check back on my website and blog on a regular basis. And, as always, if you have any questions or I can help you with anything, please don’t hesitate to call or email me!