Ready To Own a Home in Boise?

Posted by: admin  :  Category: Buying Boise Homes

Home ownership is not for everyone. Owning a house comes with a substantial list of responsibilities that cannot be ignored without consequence.

It’s a great idea to make sure you’re fully ready before making a leap from renting to owning, something Millennials have been putting off a bit longer than the previous generation, according to housing trends reported by the Ada County Association of Realtors (ACAR).

First time homebuyers have gone down 20% over the past four years, says Marc Lebowitz of ACAR, who also reports this new statistic: Most recent graduates cite student debt as a reason they will wait longer to purchase their first home.

As much as I recognize importance of first time homebuyers in the buyer pool, I fully support and encourage the delay of this significant purchase until you’re truly ready.

A house is the biggest purchase most people make. It ties us to location, salary and possibly job and stability. It requires monthly payments and the ability to hold reserves on hand for essential repairs (one percent is one rule of thumb sort of number).

Outside of the financial commitment, there is an upkeep commitment that affects your investment, your neighbors and your ability to sell, or exit.

Once you’re truly ready to buy a home, chances are you will be able to do so,  regardless of what national lending headlines have most recently hit the media. My clients with income and good credit history are not having any difficulty getting financing. This is true even for those with needs or desires for low down payments.

Idaho Housing and Finance Association (IHFA) offers down payment programs that enable some buyers to access low or zero down payments. http://www.idahohousing.com/home-loans/mortgage-financing/down-payment-closing-cost-assistance.aspx

My favorite lender, Dave Rusk at Idaho Central Credit Union (ICCU), has access to all of IHFA’s programs, and helps borrowers navigate to the most appropriate program. He explains that the programs aren’t limited to first time homebuyers, and may change. Currently, household income can’t exceed $90,000 and the borrower can’t currently own a home. Again, keep in mind the importance of a safety net to cover repairs and unexpected responsibilities of home ownership when considering any of these programs, or the ideal number to sock away into the home up front.

If you are having trouble getting financing, a larger down payment could help, but perhaps that’s a sign that you’re not truly ready. Another way to cross-reference whether renting or owning makes more sense for you is in this chart.  

This NY Times chart has fun sliders that allow you to plug in specific numbers to see whether renting or buying makes more sense for you.

Thanks for reading!

Sincerely,

Shana Moore, Your Local Boise Real Estate Professional

 

 

Shana Foster Moore,
Your local, Boise real estate professional

2 Responses to “Ready To Own a Home in Boise?”

  1. admin Says:

    Here’s a three criteria from Dave Ramsey from his recent article – a version of “being truly ready to own.”
    —You’re out of debt.

    —You have 3–6 months of expenses in your emergency fund, plus enough cash for a 10–20% down payment on a 15-year fixed mortgage.

    —You’re paying cash up front, or your mortgage payment is no more than 25% of your monthly take-home pay.

    Link: http://www.daveramsey.com/blog/buy-vs-rent-myths-busted/?ectid=elp.facebook.post.6-2-2014

  2. Foster Boise Local Real Estate Blog » Blog Archive » What is the Best Season for Buying a Home in Boise? Says:

    [...] Ready To Own a Home in Boise? [...]

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