Introducing Our New Pathway to Purchase Program

Have you heard of the new Pathway to Purchase Program? Today I’m joined by Derrick Polder from Summit Funding to inform you about this new down payment assistance program and why it’s one of the best we’ve ever seen. 

The Pathway to Purchase Program was released just last month. There is $48 million available in it, and you aren’t required to be a first-time home buyer to apply for it. That being said, you do have to occupy the property as your own residence. If you own a home currently and are planning on selling it before buying a new one, that’s ok. You cannot, however, turn your home into a rental property while looking to buy another home.

Not only do you not have to be a first-time home buyer, but you also don’t have the same restrictive income guidelines of previous programs. Past programs, for example, would stipulate that you could only make 80% of the median income. If you made upwards of $50,000, then, you couldn’t even consider those programs. The cap for the Pathway to Purchase Program, however, is just under $93,000, and that’s based on qualified income.

The program is also for purchase only, meaning you can’t use it on a refinance. Your property is eligible as long as it falls under the jurisdiction of the city of Tucson or the city of South Tucson. The program features a conventional loan, meaning that out of that $48 million, they’re going to apportion 10% toward your down payment up to a cap of $20,000.

It’s one of the best programs we’ve ever seen.

How long this opportunity will last depends on a number of factors, such as how many people will qualify and how long it will extend for. To the best of Eric’s knowledge, though, it will be available for the next two years, give or take a month or two.

If you’re a home buyer and want to learn more about the financing aspect, you can apply online at www.thepoldergroup.com. For another website that features some quick bullet points for this program, you can explore www.p2paz.com.

While this program is quite advantageous, it’s not for everyone. If you have any other financing needs or questions regarding it, don’t hesitate to reach out to Derrick’s team.

As for me, if you have any other real estate questions, please feel free to give me a call or send me an email. I’d be happy to help.

What Makes 2016 a Home Seller’s Dream?

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There are three types of markets in residential and commercial real estate: a buyer’s market (when there are more homes for sale than buyers to buy them), a balanced market (when there are an equal number of buyers and homes for sale), and a seller’s market (when there are more buyers than homes to purchase).

2016 qualifies as a seller’s market. Compared to the last year, the amount of existing inventory has fluctuated downward between 15% and 25%. What's happening is that there are more buyers competing for one property than there have been in the past. When multiple buyers compete for the same house, that house often sells for at least asking price or more.

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People have more buying power.

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If you’ve tried to sell a home in the past but couldn’t, now is the time to revisit the market.

A question I’m getting a lot is, “Why is this year different than any of the past years?” It’s not too different, but what it comes down to is affordability. Interest rates were expected to go up this year, and they’ve actually gone down. As a result, people have more buying power. Even if you’re not selling a property this year and staying in the home you have, you might want to consider refinancing. If, for example, you’re currently paying 4.5% or more on your mortgage, you will save tens of thousands of dollars refinancing to today’s interest rate.

If you have questions about market conditions or you're thinking about buying or selling a home, give me a call or send me an email.