Pathway to Purchase Program

The Pathway to Purchase Program is down payment assistance of up to 10% of your purchase price! That's a huge help for homebuyers! Even better, is that this assistance can be used for down payment and closing costs! 

Could this open up the possibility for homeownership to you? Let's talk!

When you decide to use this assistance, you must buy within the covered zip codes listed. You cannot buy a home outside of those areas. So that is a limitation but for that much of a boost, it may be worth it in the long run. 

You'll get a 30-year fixed rate, FHA loan, which is perfect for a first-time homebuyer! You just have to meet a minimum credit score and have a debt to income ratio of 45% or lower.  The property also has to be your primary residence but you don't have to be a first-time buyer!

As a Realtor®, I am really excited about this program and I hope it can help a lot of people looking to buy. So if you're interested in more information, email me at Kyle@TeamClayton.com! I'll send you a flyer with more information and a lender you can reach out to sign up!

Let's get you in a home! 

My 'Why' In Real Estate

People always wonder and ask, "what made you go in to real estate"?

The Martinez family and their story, embody why I am a REALTOR®.

Mr. Martinez is a hard working, young man, in his late 20's, and married. They have two kids and a baby on the way, actually due any minute. Mr. Martinez recently became a citizen of the United States of America and wanted to live the American Dream to it's fullest. His rent was increasing, so he went in and got preapproved to buy a home. That's when he called the number on one of Team Clayton's For Sale signs. We we're so happy to hear from him. 

When I met Mr. Martinez for the first time, I could tell right away that he was an honest, hardworking man. I was excited and immediately invested in finding them a home. I wanted to help them reach their goal of homeownership. The house they really wanted, the one that had our sign out front, was under contract and not available. So we kept looking. 

He was getting frustrated, prices we're rising, and there wasn't much out there. They had fallen in love with the first house they saw, it was close to both their families and a location he grew up in. However, there was nothing I could do about it, someone else was buying that house. Mr. Martinez was about to give up his home search. 

That's when I got some good news?! The house they loved fell out of contract, it was for sale again! I called him as fast as I could to tell him the news. We wrote a contract that day and the next day, his offer was accepted. He bought the house of his dreams (for now)!

Fast forward through closing, it was time to give Mr. Martinez and his family their new keys. This time, he had a newborn with him, ready to start her new life, in a home they own. Mr. Martinez's eyes were full of emotion, pride, because he worked hard for this. He deserved it. He made it happen. I am so proud of this family and so happy to call them my fellow Americans. 

My eyes well up with emotion, even writing this blog. This story is the reason I am in real estate. To help people achieve some of their biggest goals in life. I am with them at one of the happiest moments they have as people, or as a family. This is my why. Why I am a REALTOR®.

House Hunting In A Seller's Market

The real estate market today, has become a Seller's Market. That means there's not enough homes for sale, to keep up with the demand of home buyers. Finding the home you love, may be a challenge. 

When a new house comes on the market, there's going to be a lot of eyes on the property and if it meets a seller's needs, people will jump on putting their offers in. Buyers are having wait longer to find homes they like, so when a desirable home is on the market, they're ready to pounce on it! The house you saw today, may be the house someone else loved yesterday. So how are you going to navigate the market?

Here's some tips on finding a home in a Seller's Market:

1. Be patient but vigilant. You're going to have to exercise your patience, especially if you have a certain area or budget. You may have to wait for new homes to come on the market. When you see a home you like, it's time to be vigilant and tour it as soon as possible. 
2. Be ready to make an offer. Your competition for a home is ready to offer too, so be on the ball and get your offer out as soon as you can. In this market, it's important to submit offers that makes it easy for the Seller to say yes!
3. Expand your possibilities. You may have to think about expanding your search area or what you will accept. Smaller house? Fixer-upper? Maybe your not getting the house you thought you would but you can turn it into your dream home.
4. Negotiate. If you're asking for closing cost, could you come up in price? If you have a big down payment, is your REALTOR® making that clear to the Seller. Crafting a good deal for the Buyer that appeals the the Seller is an art. An experienced real estate agent won't have a problem explaining their method of negotiation. 

Don't worry, you'll find something, the journey may just be a little longer. 

As your REALTOR®, I will make sure you get the home you want but more importantly, want the home you get. So let's get together and talk about how we can work together to accomplish your real estate goals!

Down Payment Assistance in Arizona

Down payment assistance programs are talked about a lot but some how they're still confusing! So here is some of the information about down payment assistance programs in Arizona. You DO NOT have to be a first-time home buyer to qualify for some of these programs. 

Home In 5 Program: This is the most popular down payment assistance program. 

• 640 minimum credit score. Higher credit equals more assistance. 
• Debt to Income ratio needs to be no higher than 45%
• Online homebuyers course is required.
• You can only buy a primary residence for under $370,000
• No repayment is required after 3 years of living in home as primary residence.

What do you get? Up to 4.5% cash to help you with a downpayment. Now, that is the maximum amount of assistance, keep that in mind.

• Teachers, Veterans, Law Enforcement, First Responders get an additional 1% in downpayment assistance!
• 30 year Fixed Rate Loan.
• Your APR depends on the loan type and financial data. It will be higher than market rate.

This is the most popular program in Maricopa County. I have seen buyers get almost $10,000 dollars towards the purchase of their home. That is a huge help and depending on your Realtor's® negotiating skills, you may be able to buy a home with little money out-of-pocket. 

See also: Home Plus Program or watch this video!

So if one of your dreams is homeownership, this can take you one step closer! Talk to a mortgage broker and see where your at, then give me a call! I'm here to help you get the home you want and want the home you get!

How to Get a Low Down Payment on a House

Homeownership is a goal that many people around the world share. Our desire for shelter is an innate need we have as humans. Sometimes, the only barrier to owning a home is coming up with the money down or not wanting to drain your bank account with a down payment.

Here's the most popular option for down payment assistance:

Home in 5 Advantage: this is the most used program for home buyers, offered through FHA. It offers up to 5% in downpayment assistance for eligible buyers. The requirements are that you: have a minimum credit score of 640, make less than 90k a year, buy a home less than 300K, and have a debit-to-income ratio of 45% (or better). You can use this program even if you own, or have owned a home! An 8 hour class on homeownership is also required, once you qualify for the assistance.

Bonus! If you work in a qualifying field, you may also receive an additional 1% in assistance!*

The catch? Your interest rate is going to be higher than average because you have less, 'skin in the game' so-to-speak. You will also have Private Mortgage Insurance included in your payment, that will cost you extra too. There are other administrative fees and closing costs involved, so you will still have to come up with some money out-of-pocket. However, your REALTOR® can also work to negotiate for the seller to help pay some of those closing costs. 

This assistance does not have to be repaid! Ever!

So if you need help with a down payment, don't hesitate to reach out to a mortgage broker and find out your options. They'll be able to let you know your interest rate, amount of assistance, fees, and other information; so you can get the full picture of your financial options when buying a home. Then we can search for homes within your financial comfort zone, to help you accomplish your real estate goals!

Have questions? Email me, kyle@teamclayton.com or connect with me on Facebook!

*Qualifying fields include: Veteran, Police, Fire, Nurse, Teacher, First Responder, Doctor, Military, and others. 

How to Buy a House With No Money

Well, not literally zero dollars. Unfortunately, it's rare to negotiate a deal with zero money down but it has been done. What is more common is purchasing a home with very little money down. It all depends on your financial situation, loan type, and the seller of the home you want to buy.

As a starting point, you're going to have to have $1,000 as an "Earnest Deposit". It's a way of showing that you are seriously interested in buying the property. That's going to be a part of every real estate transaction, it will credit to your sales price but it is still cash you have to come up with out-of-pocket. 

Secondly, you're going to have closing costs that range anywhere from 2% to 5% of your sales price. So, for a $100,000 home, closing costs would be $2,000 to $5,000 dollars, with the average being around $3,000. Having a REALTOR® on your side will give you the help you to negotiate a deal with those costs in mind. There are a variety of ways a REALTOR® can negotiate a deal to help you pay as little as possible. Closing costs are unavoidable but can also be gifted if that applies in your situation.

Now is the time where down payment assistance programs kick in, a popular one is the Home in 5 Advantage program. You could qualify for 2.5% to 3.5% of down payment and closing cost assistance, depending on your financial position. There is also the Home Plus program and each lender also has their own programs.

Depending on your loan, there may be other fees, costs, and rates that apply, they may even affect your monthly payment. It's important to have an open dialogue with your mortgage broker to make sure you know what fees and rates you will be charged. 

You have to balance your financial goals with your homeownership goals to find what is right for you. Focus on what is important to you—is it a certain budget, low interest rate, low out of pocket costs, or something else? Think about it, then talk with both your lender and REALTOR® so that they can help you achieve your goals.

When you choose to work with professionals, you will have a team on your side fighting for your goals. Literally. This is why using a licensed, full-time real estate agent is crucial to you buying a home with little money down. Finding the right mortgage broker is also important because they each have different styles and offer different programs, so don't be shy about shopping around.

Check out my video on down payment assistance programs for more information. 

Have any questions? Email me at Kyle@teamclayton.com or on Facebook!

Tips for First-Time Home Sellers

When you bought your first home, you probably thought that was 'the one' and you'd never move again! Until now, when home values are rising and you need a little more space. As a Seller, you're in the driver seat and can take control of the sale of your home. The choices you make now will be what set the tone, so being prepared will make the process much smoother.

Here's some tips for selling your first home:

1. Detach and Declutter: the first thing you want to do is realize that your house, is about to be someone else's home. That disconnection can help you in negotiations too. You'll also want you to declutter and make your home a little less personal. This will help potential buyers visualize themselves in the home. That makes them more likely to buy. 
2. Price it Right: competitive pricing gives your property exposure to as many potential buyers as possible. That exposure can lead to more interest and multiple offers, especially in today's market. The more interested buyers viewing your home, could drive the price up. If you start too high, you skip all that excitement. Correct pricing also prevents potential appraisal issues that could come up once you have an offer accepted.
3. Stage: If you are living in your home, staging it means things are clean and tidy. All the beds are made, the house is at the most presentable level possible. If you're moving out of the house, that means we bring in furniture and other items to stage the house. It still conveys the 'homey' feeling without a family being in the home. 
4. Be Ready for Showings: When you list your home for sale, you want to make it as easy as possible for agents to show the house. However, it's still your home and you may have kids and pets. So, have a conversation with your REALTOR® about when you want the house available for showings. You will also want to think about open houses and what you expect with those events. Knowing how you will handle showings and when they'll happen will take some stress out of the process.
5. Minor Adjustments and Repairs: your REALTOR® may suggest a couple of items to repair or fix to make the house as desirable as possible. The home's systems and appliances should be working. Touching up paint or cleaning windows, helps make the property stand out, and more likely to be considered as desirable by buyers. Some repairs will also alleviate inspection issues down the road too.
6. Time to Negotiate: when an offer comes in, you need to be ready to make a deal. You are in the driver seat and can decide what you will or won't accept. However, just like any other deal, you have to be willing to negotiate and work to make the best deal happen. Focus on what is important to you, such as sales price, timing, repairs, and minimal concessions. Whatever it is, know that you'll have to make some adjustments to hit your ultimate goal. 
7. Get to Close of Escrow: once you've agreed upon a price and terms, it's time to close. After the buyer does a home inspection, they may ask you to make repairs to items found in the inspection. So be prepare, and don't take this part of the process personally. If the buyer is financing their purchase, your home will need an appraisal. This is another area that could be open to negotiating your sales price. If the appraisal meet the sales price, the deal moves closer to completion. Just be patient!
8. Find a Good REALTOR®: A licensed, full-time real estate agent will give you the representation you deserve. In a competitive market, negotiations matter, so choose an agent that can negotiate for you. Ask them about what they have negotiated for past seller clients. If they can give you more information, they may be able to produce the results you want. (Ask us!) Professional photos of your home to be displayed on the internet will give your house the exposure it needs to sell. If the REALTOR® you are thinking of hiring is not offering this service, you are want to consider a second option.   

Today's market is competitive, and with the lack of available homes for sale, this creates what we call a "sellers market." Now is a great time to think about your options when it comes to selling. Especially if you bought during the downturn, you may have a lot of equity, and we can help you cash out, and upgrade your living condition. If you need more space, or maybe even less space, or just a change of address - it's a great time to take advantage of the opportunities available. 

Knowing the process is half the battle because then, you'll know what to expect. After that, it's just about working to get you the best deal that accomplishes your financial goals.

If you have any questions email me at Kyle@teamclayton.com or connect with me on Facebook!

The Benefits of Homeownership

We all need a roof over our heads, whether it's a home, apartment, condo, or townhouse. However, housing can be a complicated and even become an emotional decision. Especially after the downturn, people can be hesitant to buy a home, the good news is homeownership is still beneficial. 

Health Benefits: Homeowners and their families are generally more engaged in the community and healthier individuals, mentally and physically, according to Mark Lindblad, research director at the University of North Carolina’s Center for Community Capital. Children who's parents own a home also do better academically. 

Tax Benefits: if you're single or married, without any children, you probably don't have many deductions to help lower your tax burden. Owning a home automatically allows you to deduct taxes and interest paid that year. Make sure you speak with an Accountant to make sure your deductions are correct. 

Stable Costs: Rents are rising in today's market and owning a home, with a fixed rate loan, makes your housing costs predictable. As you pay down the loan amount, your mortgage will cost you even less. Rent is always cheaper in the short term, but owning a home stabilizes that cost and lowers it in the long term. A rental will never do that. 

Build Wealth: Homes typically go up in value, although that can fluctuate in the short term, house values in the long term are stable. Real Estate is a long term investment so be patient. Luckily there are also monthly gains in equity as you continue to pay your mortgage down. The bottom line is that real estate is still a great way to build wealth for you and your family. 

Capital Gains Exclusion: When you sell your primary residence for a profit, you get to keep $250,000 if your single and $500,000 if you're married. You'll pay $0.00 in capital gains taxes. ZERO!

The financial benefits are clear but the social benefits are based on stability. So when thinking of buying a home, make sure you're going to stay there for the long term. Then get a fixed rate mortgage and look for downpayment assistance if needed. That, along with a stable job, will ensure that you reap the financial and social benefits of owning a home. 

Need help making those decisions? Know someone buying or selling? Please contact me, Team Clayton Real Estate is ready to help you! Visit: www.teamclayton.com or email Kyle@teamclayton.com