PHOENIX — Owning a home has long been part of the American dream, but for the past few years, finding a way to afford a home has been a nightmare.
However, housing experts said there is aid if you are willing to look and be patient.
"Shop, if you shop and do your homework, it can make a lot of difference," Edward Ridlan said. "You can see the difference with down payment assistance instead of getting a regular loan."
Ridlan is a housing counselor with Chicanos Por La Causa. He walks homebuyers through the process and helps connect them with resources.
One of the biggest issues is down payment assistance.
Ridlan said some homebuyers can qualify for federal, county, and city down payment help. That assistance can be layered on top of each other.
For example, Ridlan said some home buyers can qualify for the federal WISH program that can provide up to $30,000 in down-payment assistance. That money can be stacked with assistance from Maricopa County, and assistance offered by a city like Avondale.
“I've seen up to almost $100,000 in down payment assistance,” Ridlan said.
So what if you do not qualify for down payment assistance?
“The word of the day for the real estate market is patience," said Cromford Report Senior Housing Analyst Tina Tamboer.
The Valley housing market currently favors the seller, but not as much as it did a year ago.
"We would compare this market to 2015 or 2016," Tamboer said.
Because of the slower market, Tamboer said more sellers are offering to help out home buyers.
“Many sellers are offering buydowns,” Tamboer said.
Buydowns are when a seller temporarily (or, in rare cases, permanently) agrees to pay part of the mortgage interest rate to lower the monthly mortgage payment for a buyer.
Washington, DC, is helping some first-time home buyers.
Last week, the Biden administration announced it would lower the insurance premium for FHA loans.
FHA loans are backed by the federal government, require less money down, and are often used by first-time home buyers.
According to the administration, a Phoenix home buyer with a $400,000 mortgage can expect to save around $1,200 annually.
So how do you get help?
Ridlan recommends contacting counselors to help guide you through the home-buying process.
Tamboer said not to rush and keep an eye on mortgage rates that could provide a clue to where the market may head.
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