Housing Down Payment Assistance

As home prices continue to appreciate throughout the nation, down payments become harder to make. Housing down payment from HUD may be the answer.

Housing Down Payment Assistance – HUD

One of the biggest financial hurdles to the American Dream of owning a home is the down payment. The magic number with down payments is twenty percent of the value of the home. If you can put down this amount, you avoid expenses such as private mortgage insurance and get a head start on building equity in the property. It can be hard, however, to come up with twenty percent on a home selling for $300,000, to wit, you need $60,000!

Homes can then be purchased through HUD and financed through FHA-approved low interest loans. In addition, HUD offers other services including housing down payment assistance. Although HUD does not offer these directly to the public, it has DAPs in place. A DAP is Downpayment Assistance through Secondary Finance Providers. These providers are backed by HUD and offer no to low interest loans that be used for down payment assistance when it is needed. Instead of financing your home purchase, they finance the down payment required for the purchase.

As you might imagine, financing you down payment in addition to your overall real estate purchase raises some questions. First, should you buying the property in question if you have to pursue both financing options? Owning a home is a great financial move, but you might be biting off more than you can chew by going in this direction. Second, perhaps you should choose a home with a lower price? This double finance situation means you are going to be paying a lot of interest to get into that home. Ultimately, you might regret doing so when you realize you will never see it again.

Housing down payment assistance through HUD can be incredibly useful. In fact, all of the services offered through HUD can greatly assist any potential homebuyers. They offer great, low cost homes and offer assistance to homeowners who are struggling to make the payments on their own home. This service should be taken advantage of when necessary.

Estimate the Market Value of a Property

Often people fail to make a profit from property investment when they do not understand the true market value of their chosen property, both in terms of resale and rental income.

Investors hoping to purchase a run-down home or off-plan development and sell it on at profit when the work is complete; a practice known as flipping, are often caught out by over-inflated prices or under-estimated renovation costs.

On the other hand, buy-to-let investors can be seduced by suggestions of high rental values and then disappointed when these do not materialise.

Whether you’re planning to flip a property or buying-to-let, it is important to ensure that you do not pay over the odds, as money saved on the purchase price will lower your mortgage costs and increase your profit margin.

Understanding the local market

One of the best ways to estimate the potential value of a property is to understand the local market. Fortunately there are a number of tools to help you do this:

Use the internet – The Land Registry (landregisteronline.gov.uk) now provide information on all properties sold in England and Wales since 2000. Through this you can access information on the property’s value when the registration took place. Remember this information will not be up-to-date, but it may give you a broad idea of what the current owner paid.

Browse estate agent listings – Using the internet and local papers, you can soon get an idea of the market value for different types of property in the area. It is also worth arranging a couple of viewings, allowing you to make suitable comparisons when you have decided on a place to purchase.

If you are planning to buy-to-let, it is also worthwhile speaking to a few letting agents to try and gauge the general rental prices that could be expected. Again rental listings on the internet and in local papers will help to verify the amounts tenants will be prepared to pay.

Seek professional advice

Once you have decided on a property and feel confident that it reflects the true market value, it is advisable to carry out a full survey.

Although it is a requirement for mortgage lenders to inspect the property, the surveyor will not look at inaccessible parts (such as the roof, floors and drains), unless there is reason to believe that there may be a serious defect, in which case it is likely that a recommendation for a more in-depth survey will be made.

The risk of relying on this basic inspection is that the surveyor could miss an important defect which will be expensive to repair. By having a more in-depth survey, the surveyor will be able to identify such defaults and advise on the potential cost of repair, allowing you to negotiate a discount on the purchase price to cover this.

Take your time

Unfortunately there is no silver bullet approach to accurately valuing property and one of the secrets to running a profitable property business is investing time and money to ensure your buy your property at the right price.

Investing in Orlando Land

With the rampant development happening in most parts of the country, the purchase of land is becoming more and more secure in terms of investment. Have you ever wandered around the undeveloped areas in your town or city and wondered who owns them? Or maybe you have seen the “land for sale” signs on open lots and fields. Well, people are making great money on selling land for new developments and sub-divisions. Who owns that land? It could be you.

Investing in land is something that takes a bit of research, timing, and some risk but it can be extremely rewarding if done properly. The first thing you need to wonder about when considering a certain piece of land is the zoning of that land. This is probably the most important factor in land purchases. If the land is not zoned for residential, getting the zoning changed for sale to a development company interested in sub-divisions could be kind of tricky. The same can be said for land that is not zoned for commercial purposes. So do your homework when looking at different land parcels. Make sure that the zoning is appropriate for you and who you want to sell to at the end.

If you are thinking large scale when doing this, prepare to spend a fair chunk of cash. These days land is not too cheap. But in comparison to what you can expect as a ROI in a few years it is well worth the time and money. If you live in an expanding area where housing is at a premium then buying land is a fantastic idea. It should only be a matter of time until the developers come knocking. Or, if you are so inclined, sub-divide your land yourself. The process does have some merit as a great profit can be realized from the sale of single home lots. When you get down to brass tacks, investing in land is a great way to make some profit and increase your wealth exponentially.