Uncategorized October 10, 2023

First Time Homebuyer Myths

First Time Homebuyer Myths

I often get ideas for blogs from situations that present themselves or from something someone else has written or newsletters I get in my email.  In this case it is two of these!!

So many first-time home buyers think they need to put 20% of the purchase as the down payment.  But, in fact, depending on the type of loan they qualify that is simply not the case.  FHA loans are popular and only require 3.5% downpayment, there are some conventional loans that are as low as 3%, if you are a Veteran, you may be able to qualify for no money down and if the home you are buying is in a certain area you may qualify for a no downpayment USDA loan.

If my mortgage requires private mortgage insurance (PMI) I am stuck with it for the life of my loan.  This, again, is not the case.  In some cases, you can simply have your lender cancel the PMI when the value of your home reaches around 80% of its appraised value.  Or you can refinance your existing loan when you feel the value of your home is high enough to allow the loan to value to reach that 80% range.

My parents can’t help with my downpayment.  Mortgages popular with first-time buyers often allow their relatives or employer to chip in with “gift funds”. It’s also possible for the adult children of first-time buyers to chip in too, which is the case with recent clients of mine.  You may also consider opening a special bank account, much like an account for an IRA or college savings account to save to buy a house, and instead of gifts for birthdays and holidays as family members to deposit that cash to your account to help you save to buy a home.  In some areas of Maryland and DC there are government programs to aid with your downpayment too.  Check out some of my previous blogs about these programs:

This is part of a series of blogs outlining some of the downpayment assistance programs in Baltimore City.  In case you missed the others, links to these blogs are here:

First Time Homebuyers Incentive Program

Buying a Home in Baltimore City Live Near Your Work

Baltimore City Employee Homeownership Program

Baybrook Boost Downpayment Assistance Program

Direct Homeownership Assistance Program

Home Ownership Counseling in Baltimore City

A Journey Starts with One Step

I have been selling Baltimore City homes since 2003 and have helped hundreds of homebuyers become homeowners.  I can help you too!!

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Creating generational wealth, one home at a time. If you are thinking of buying a home,  did you know I can help you find a home for as little as $1000 of your own money?  Thinking about selling a home in  Maryland give me a call at 410-292-0100 or start your search here and I’ll talk about the market conditions and what your home could be worth in today’s marketplace if you are thinking of selling.  If you are considering buying a home, there is no better time than now to buy. The tax savings and wealth building alone are worth the plunge into today’s market. Coldwell Banker and I are connected with some of the world’s brightest and best real estate agents and can assist with your move here to Maryland or anywhere in the United States or abroad.  Ask me how.

During these trying times, Coldwell Banker and I are equipped with the latest technology to sell your home using Virtual Open Houses, Virtual showings, electronic signing, virtual inspection, and even online closings.   You can contact me through Snapchat, Duo, Skype, Google Chat, WhatsApp, text messaging, or simply by phone.  We take your and your family’s health and safety very seriously.

June Piper-Brandon ~ Associate Broker ~ MRP, AHWD, CDPE, ePro

Coldwell Banker

410-292-0100 – Direct   410-461-7600 Office

June Piper Brandon - Agent with Century 21 New Millennium

June Piper Brandon - Agent with Century 21 New Millennium