Landlords Beware: It’s a Great Time to Buy a Home
April 23, 2015
We're all familiar with the famous line from The Wizard of Oz. As Dorothy clicks her ruby slippers she repeats over and over, "There's no place like home!" It's true. There is no place like home – and owning a home makes it even more rewarding. It's the American Dream after all.
The spring homebuying season is in full swing and we expect it to be the best year for home sales since 2007. As you plan your business strategies, renters are a key market segment that you should consider reaching out to. Here's why:
- RISING RENTS. Rent prices increased an average of 3.6 percent in 2014 and nearly 11 percent over the last three years, according to REIS, Inc., a leading source of real estate data. Freddie Mac predicts this trend will continue.
- LOW MORTGAGE RATES. At the same time, mortgage rates continue to remain at near historic lows.
- AFFORDABLE HOMES. Homes for sale remain affordable – still about 10 percent below their 2006 peak nationwide.
When you take these factors into account, it makes sense for renters to buy now.
Renters agree. According to a November 2014 Harris Poll commissioned by Freddie Mac, of those renters who said they would consider buying a home, 39 percent already think buying a home is a better financial option than renting.
We can help you reach out to this segment of the market and grow your purchase market business with these products and tools:
- Customizable marketing materials. Add your logo to our ready-to-print flyers and brochures to reach out directly to potential buyers who are currently renting.
- Home Possible AdvantageSM. Reach out to more qualified buyers – even if they have limited down payment savings. Our 3 percent down payment mortgage Home Possible Advantage offers a maximum loan-to-value (LTV) ratio of 97 percent and total LTV ratio of 105 percent.
- CreditSmart®. Help your customers build and maintain better credit, make sound financial decisions and understand the steps to sustainable homeownership with our free financial education initiative – available in English and Spanish. Your customers can satisfy their Home Possible Advantage education requirement by taking our online CreditSmart – Steps to Homeownership Tutorial.
- Down Payment Assistance Options. Visit our Purchase Market Resource Center to get up-to-date on down payment and closing cost assistance programs available for your homebuyers.