By Pat Lairson
Whether renting or owning, everyone needs a place to live. With the price of rents soaring across the Valley, why do people choose to still rent over buying?
The average rental amount in Maricopa is $1,200 a month, and the average rental price in Chandler is $1,811 a month. It takes about three years from the time you purchase your home to gain enough equity to sell it again and have some equity left to put in your pocket. If you know you will live in a certain area for up to three years or are OK to become a landlord should you move, then buying a home now should be on your to-do list.
If you choose to proceed to buy a home, the first step is to get prequalified. The three most typical loan types are conventional, FHA and VA. All require different criteria and different amounts of a down payment.
Any loan where a buyer does not put 20 percent of the purchase price down usually results in PMI, or a private mortgage insurance cost added to your monthly loan amount. In the state of Arizona your taxes and home insurance are impounded into your escrow account so the monthly mortgage you pay will include these two items.
There is still a No Down Payment Assistance program available for buyers who have little or no down payment or simply want to use this program instead of their own funds. It is called Home Plus, and here are some of the qualifications for this program:
- AZ E-housing gift amount is between 3 percent and 5 percent, depending on the type of loan, that can go toward down payment or closing costs.
- Maximum annual income limit of $92,984.
- Maximum purchase price $371,936.
- No first-time buyer requirements. Buyers can own other real estate.
- Seller concessions are allowed.
This is an awesome way to become a homeowner, and the funds do not have to be paid back.
There are approximately 280 available homes for sale in Maricopa. The current price range starts at $144,000 and goes up to $480,000.
Pat Lairson, Realtor
The Maricopa Real Estate Company
This column appears in the July issue of InMaricopa.