First time Homebuyers in NC are an important part of the Real Estate Market Recovery. They allow folks who own a home, and need to move to a bigger (smaller) home the opportunity to do so. As those folks move out of starter homes into a larger one, the chain just gets stronger. According to US News, the First Time Home Buyer is important because, ” When potential new buyers sit on the sidelines, existing homeowners are stuck, unable to move out and up.” The NC First Time Homebuyer is facing pressure.
For one, the NC First Time Home Buyer Program recently changed, and with that change, came the requirement for a minimum credit score of 640… up from the previous requirement of 620. Additionally, NC First Time Homebuyers that we meet are now faced with more Student loans than we’ve ever seen. According to US News Student loan debt for the average 20-something First Time Homebuyer in NC is almost $30,000. This makes it difficult to rustle up enough cash for a down payment.
Student loan debt is looked at more harshly with the USDA Home Loans, and those with over $40,000 in Student Loans might want to look at the FHA Mortgage as an alternative. USDA Home Loans in NC require no downpayment, and if you choose to use the FHA program the downpayment of 3.5% can be a gift, or you can use the 3% Grant NC First Time Homebuyer Program Assistance.
Still, first-time homebuyers make up almost 40 percent of the entire NC buyer pool, according to a recent survey by Doorsteps, an online resource that connects buyers, agents, lenders and service providers. Here are a few more stats the describe today’s typical first-time homebuyer:
Location, location, location: “ The old real estate adage holds true with first-timers, with more house hunters willing to compromise on features of a home rather than its location. While 20 percent said they would compromise on the size of their future home, just 2 percent would on the proximity of a home to good schools.”
NC First Time Homebuyers are experiencing many more multiple offer situations because they are competing for the “best” location.
Pinching pennies: When it comes to purchasing real estate, first-time home buyers increasingly know they can’t “have it all” while staying on budget. More than 40 percent said they would cut back on luxury items to save for a home, while 35 percent said they would tighten the purse strings on entertainment spending… no matter how they do it… Get money from the Bank of Mom and Dad, save, or use a mortgage program that requires very little money for a downpayment – NC First Time Homebuyers know that with interest rates this low, it’s a LIFETIME of Savings if they purchase a home now!
Have questions about cash needed to close and closing costs, or how the $3% Grant / downpayment assistance program from the State of NC works? Call Steve and Eleanor Thorne about your particular situation at 919 649 5058. Remember – you might qualify for a Single Parent Grant to purchase a home in NC!