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Many First-Time Buyers Put Down Less than 6%

This is Big. Having a conversation with a good lender and finding out how much you actually have to put down for a home is super-important. It could be way less than you think. Need a referral? I can put you in touch w some great local lenders: call/text!

61% of First-Time Buyers Put Down Less than 6%

61% of First-Time Buyers Put Down Less than 6% | MyKCM

According to the National Association of Realtors’ latest Realtors Confidence Index, 61% of first-time homebuyers purchased their homes with down payments below 6% from October 2016 through November 2017.

Many potential homebuyers believe that a 20% down payment is necessary to buy a home and have disqualified themselves without even trying. The median down payment for all buyers in 2017 was just 10% and that percentage drops to 6% for first-time buyers.

Zillow Senior Economist Aaron Terrazas’ recent comments shed light on why buyer demand has remained strong,

“Looking into 2018, rent is expected to continue gaining. More widespread rent growth could mean home buying demands stay high, as renters who can afford it move away from the unpredictability of rising rents toward the relative stability of a monthly mortgage payment instead.”

It’s no surprise that with rents rising, more and more first-time buyers are taking advantage of low-down-payment mortgage options to secure their monthly housing costs and finally attain their dream homes.

Bottom Line

If you are one of the many first-time buyers who is not sure if you would qualify for a low-down payment mortgage, let’s get together and set you on your path to homeownership!

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Advantages of Living in a Small Home

While the jury is still out on whether or not Tiny Houses (micro-houses of 500 square feet or less) are here to stay or just a passing fad, Smaller Homes may be just the thing for those looking to live in high-demand areas. Bigger than a Tiny House, small homes range from 1000 - 2000 square feet. Cottages, bungalows, and shotgun houses are all typical smaller homes, and Bozeman and the Gallatin Valley has a wealth of them. To get into 'hot' neighborhoods without getting into really high prices, small homes represent an option for some to live in a great neighborhood. What a small home lacks in space, it makes up for in easy access to amenities and walkable neighborhoods.

According to a recent post in Business Insider, it's not unusual for the value of small homes to rise faster than that of larger homes. In one region of Florida, small homes showed a dramatic growth rate of 19.5% each year (2013-2016), while the area's largest homes appreciated by only 5.1% during the same time period. http://www.businessinsider.com/are-smaller-homes-valuable-2…

A Washinton Post article informs that downsizing to a small home can come with some built-in offbeat perks, including: "You have a bulletproof reason to graciously decline Aunt Laura's offer of her lime-green, fake-leather living room set that might have looked good 40 years ago. You'll have no place to put it..." http://www.washingtonpost.com/…/…/07/08/AR2010070806792.html

If you're looking for your own bulletproof excuses to keep from acquiring more stuff from Aunt Laura, I can help!

Cheers!

Jennifer Walsh REALTOR
570.1653
Let's Get Real! ®
A report by Nerdwallet suggests that smaller homes gain value faster than larger houses.
BUSINESSINSIDER.COM

 

 
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Advantages of Living in a Small House

While the jury is still out on whether or not Tiny Houses -- micro-houses of 500 sq feet or less --  are here to stay or just a passing fad, Smaller Homes may be just the thing for those looking to live in high-demand areas.  Bigger than a Tiny House,  small homes range from 1000 - 2000 square feet.  Cottages, bungalows, and shotgun houses are all typical of the smaller homes that have been prevalent through generations of homeownership in the US.  In many areas including Bozeman and the Gallatin Valley, there is a wealth of them.  To get into 'hot' neighborhoods without getting into the really high prices, small homes represent a real option for some to live in a central location. What a small home lacks in space, it makes up for in easy access to amenities and walkable neighborhoods.  And with ready access to VRBOs and other short-term vacation rentals, a homeowner can get away without having that spare bedroom.  (You can always put up visiting friends and family at a nearby Airbnb.  And why not share meals at nearby restaurants? You know you hate cooking for a crowd!)

     According to a recent post in the finance section of Business Insider, it's not unusual for the value of small homes to rise faster than that of larger homes. In one region of Florida, small homes showed a dramatic growth rate of 19.5% each year (2013-2016), while the area's largest homes appreciated by only 5.1% during the same time period.  http://www.businessinsider.com/are-smaller-homes-valuable-2017-2 . The greater price appreciation of smaller homes is the result of people choosing a cheaper entry point into areas of higher demand, higher prices, and higher taxation.

     In addition to the greater rate of appreciation, the costs for maintaining a smaller house are significantly lower.  According to a recent article on Trulia.com,  the electric bill for a 1000-square-foot home is approximately $200 less per month than the electric bill for a 3000-sq-ft home on average.  Even routine repairs and maintenance are less expensive for a smaller house:  replacing a (smaller)

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