BUYING IS TWICE AS AFFORDABLE AS RENTING
For Playa Vista Buyers interested in buying real estate vis renting a condo or a house.
It's more affordable to buy a home now in most U.S. metros than it was 15 years ago, according to an analysis of third quarter income and home value data by Zillow. Renters, however, continue to pay an increasing share of their income to their landlords as rents soar and incomes remain flat.
On average, U.S. home buyers making the nation's median income and purchasing the typical U.S. home spend 15.3 percent of their income on their monthly house payment, down from the historical norm of 22.1 percent during the pre-bubble period from 1985 to 1999. On average, U.S. renters spent 29.9 percent of their monthly income on rent in the third quarter of 2014, up from 24.9 percent historically.
Continuously rising rents across the country could drive more people into the home-buying market, but they also make it more difficult for first-time buyers to save for a down payment.
MAJORITY OF HOME BUYERS UNAWARE OF DOWN PAYMENT ASSISTANCE PROGRAMS
Although there are hundreds of millions of dollars available for down payment assistance, 70 percent of U.S. adults are unaware of these programs for middle-income home buyers in their community, according to findings from the second annual America at Home survey commissioned by NeighborWorks America.
NeighborWorks organizations provided 6,000 people with more than $100 million in such assistance last year, and expect to make even more available this year.
Down payment assistance is especially helpful for home buyers who are unsure about affordability because of student loan debt.
C.A.R. offers a resource to help buyers find down payment assistance programs. In California alone, there are more than 300 homeownership programs available, including direct down payment and closing costs assistance as well as mortgage credits of up to $2,000 for the life of the loan. Visit downpayment.car.org to see if your clients qualify.
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