The average price to rent an apartment in the U.S. is $1,214, that is an increase of 14% compared to prices in 2010. With many Americans putting off buying a home, the demand for rentals is high. It doesn’t look like rent prices are slowing down, they are rising 4% faster than inflation, and have doubled compared to U.S. home prices over the same period according to Reis, Inc.
Hampton Roads is not immune, a one bedroom, one bath apartment near the Town Center section of Virginia Beach, is renting for $1,210 – and is only 778 square feet. In the same zip code, a qualified buyer with a conventional loan could purchase a two bedroom, two bath home with 1,668 square feet for a mortgage payment of $1,095. Even when you add in the taxes and insurance you still could be under the the price of renting an apartment.
So why are so many renters staying put? A large reason is that many cannot afford the typical 20% down payment that many people consider necessary for getting a home loan. Yes, 20% is an industry standard, but there are a good amount of government programs available to help first-time home buyers find funds to get a home of their own.
- First-time homebuyers can qualify for $5,000 closing-cost assistance or down-payment with a minimum contribution of $1,000 from the borrower.
- There is also a community partners program where homebuyers who are currently serving as law enforcement officers, educators, firefighters, or healthcare workers can get up to $7,500 with a minimum contribution of $1,000 from the borrower. Veteran and current U.S. military members can receive up to $7,500 for closing costs and down-payment.
- Returning Veteran homebuyers that are currently serving or have served in an oversees military intervention for any branch of the U.S. Military can get up to $10,000 assistance for closing costs or down-payment.
Each of these programs require that you’re purchasing an owner occupied house and you must meet annual household income requirements. To find out more information about these and other mortgage options you can contact the folks at Advance Financial Group with is a Division of Monarch Bank.