Although housing inventory in the country has remained low nationally for the previous 25 months, some areas in the country have actually shown a rising trajectory.
The continued scarcity of available housing units is creating numerous problems for the American homebuyer.
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First, there’s a huge chance that they will have to participate in a bid war if they find a home they want to purchase. Due the surge in demand, home prices naturally follow through, straining the already tight number of available units that the average buyer can afford.
For this reason, priced out buyers either look for low down payment mortgage programs to finance their needs, delay homebuying altogether, or move their location preference to areas with more favorable housing price conditions.
For those who don’t want to give up house hunting yet and are open to moving to another location, you’d be glad to know that certain areas in the country’s south and the midwest actually have growing inventory markets.
|Rank||Area||Total Inventory||Homes sold||Average price of homes on sale|
|1||Raleigh, North Carolina||7,771||2,022||$265,000|
|2||Baton Rouge, Louisiana||3,346||807||$205,000|
|4||New Orleans, Louisiana||6,155||1,004||$202,000|
|5||St. Louis, Missouri||13,868||3,305||$168,000|
National housing inventory dropped to its steepest since 2013 per recent data monitoring. But while it has been 25 months since the start of the inventory trouble, the situation is not the same in other parts of the country.
Compared to major coastal cities in the US which had seen a price jump of almost half their prices in the previous years, the above eight markets have shown promise of hope for the nation’s homebuyers.
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Low down payment options
For those who can’t afford to move due to job constraints or other personal reasons, it’s not necessarily the end of the road for you.
There are various low down payment financing options that you can explore to fund your home purchase. Let’s look at these federally-backed home loan programs:
USDA loans. Designed to help low-to-moderate income borrowers in the country’s rural regions and suburban areas, the USDA home loan program offers 100 percent financing and competitive interest rates. The borrower has to pay for mortgage insurance with or without a down payment. The program is backed by the US Department of Agriculture.
VA loans.Calling on the country’s veterans and servicemembers, a VA home loan helps eligible borrowers purchase a home with 100 percent financing, low interest rates, and no mortgage insurance payments. The loan is insured by the US Department of Veterans Affairs which insures a portion of the loan.
FHA loans. FHA loans cater to first-time homebuyers, offering a 3.5 percent only down payment requirement if the borrower meets the minimum credit standard. The loan is backed by the Federal Housing Administration.
You may also check out your local credit unions for low interest mortgages. Even private lenders today already offer down payment options.
Let’s help you get started.