Essex Real Estate
- Vermont did not experience the "Boom" those other areas experienced, and we hence have not experienced the "Valley" either. Vermont's home values, even in the growing of the housing boom, staying fairly level. Vermont has laws that prevent speculative buying, and our building community to did not over-build the available inventory to sell. This has helped maintain home values in Vermont and the more localized areas of Burlington, South Burlington, Williston, Essex, Charlotte, Colchester, and Shelburne.
- The current national unemployment level is hovering at around 9%. The unemployment level in Vermont, and more precisely Chittenden County, is nearly 1/2 that amount. The bottom line is that jobs in Vermont have not been nearly as affected as they have in other parts of the country. Employers like UVM, IBM, and Fletcher Allen Health Care have a long employment record in and around Burlinton. There's no reason to believe they'll go anywhere in the time-being, either. If jobs are the key to the economic recovery, and an improved housing market- we're already where we need to be.
- Mortgage rates remaining remarkably low. In fact, you can STILL qualify for a low rate of 4.9% for a 30 year fixed rate. This low rate, coupled with the relatively flat but somewhat lower prices than what we have seen in recent years means that homes in Vermont are more affordable than ever. See the link here to a recent Vermont affordable housing study: http://www.burlingtonfreepress.com/article/20110315/NEWS01/103150303/Study-Vermont-housing-more-affordable
Have you thought about buying a home, but think the possibility is just too far out of reach?
Do you think the only way you own your own home is with 20% down? If you have thought this, don't worry, many people have. In fact, there is a general misconception that owning a "piece of the American dream" is simply out of reach for many Americans. Not true! With an FHA loan, you too can qualify for the purchase of a home...now!
What is an FHA Loan?
FHA is the Federal Housing Administration, which is a member of HUD. Essentially, an FHA loan is a federally insured loan, so your local lender can offer you a great deal on a loan. There is minimal risk for the lender.
So what does this mean for me?
Well, first it means that you may qualify for a low down payment- 3.5% of the purchase price in fact! Also, most of your closing costs (attorney fees, mortgage origination fees, etc) can even be rolled into your loan, so you will need even LESS money at closing. This is one of the reasons that makes FHA loans so attractive to most home buyers with little cash on hand.
So What's the Catch?
Really- nothing in particular, however there are two specific things worth mentioning:
- There are limits on the value of the home you can purchase. In Chittenden County of Vermont, for example the limit for a single family home is $318,750.
- You will have to qualify for the loan, just like any other "traditional" loan out there. As long as you have had a steady job and a good credit score, you should have a good opportunity of qualifying for an FHA loan.
The fact is, the FHA program is a great program for people looking to purchase, although they may not have the typical 10-20% down payment available. You can qualify for a very low 3.5% down payment, and be in the home of your dreams earning equity instead of paying rent. For more information on the FHA program, visit: https://www.hud.gov/offices/hsg/fhahistory.cfm Contact Brad Dousevicz of Dousevicz Real Estate for more information, or to discuss your options- 802-238-9367