With homes continuing to add to Houston’s fairly large supply of foreclosure homes, prices have also continued to be negatively affected. The upside to this scenario lies for the people who intend to become homeowners. People, who, until sometime back, could not afford to buy a home, are now looking amidst the Houston foreclosures for good cheap deals.
Houston’s typical first time home buyers, who, for instance, have saved about 10% of starter homes’ median selling price for a home’s down payment, can now afford to think of buying a home. This is chiefly because prices of homes in the region has seen a decline of around 25% in the last year, with loan rates dropping at well under 6%.
As of 2008’s December, first time home buyers who had median house-hold incomes exceeding $35,414 had the prerequisite income required to qualify for a loan of around $144,000. However, in applying for a home loan, you must remember that to get the best mortgage rates which are available, you would need to have an excellent credit score.
An interesting option when it comes to getting a loan to buy a foreclosure affected home in Houston is a program run by the Federal Housing Administration which is the ‘203K Streamline’ program. Under this program, the borrower would get an additional $35,000 (in excess to the home’s price) in order to cover costs that could arise due to any renovation that the foreclosure home might require.
Many of the homes that have been sold in the recent past have been associated with foreclosures; and the homes discounted prices is one of the main reason for this trend. If you do intend to buy a home amidst Houston foreclosures, it would be a good idea to get pre approved for a loan first. This would give you a good idea of the budget you need to restrict your search to.
Once you have a budget in place, go through all available resources to enhance your search. Use resources such as the internet, real estate professional, banks, newspapers, etc. to help you broaden your search for Houston home foreclosures. With there being an ample supply of foreclosure homes within the region, you can easily afford to be picky.
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Written by Alex Rolim.
