August 28, 2024
Everyone has questions about buying a home, and many of these questions are similar. In this blog post, we’ll look at four of the most commonly asked questions about home buying, as they apply to Houstonians in 2024. These asks are:
– How do interest rates work for home loans?
– What is considered a first-time home buy?
– Can a single person get a habitat for humanity home?
– Where are affordable neighborhoods for single family homes in Houston?
Do you know someone who has questions like these? Advocate for family and friends to grasp their dreams of home ownership by sharing posts like this. Per Allison Hay, CEO of Houston Habitat for Humanity, during the Webinar: 2024 State of Housing in Harris County and Houston, “a louder voice is what we need!”
Information about interest rates is not something most schools teach. Therefore, many adults looking to buy a house have thoughts such as “How do interest rates actually work?”, “How are interest rates calculated?”, and “What is a good interest rate?”.
First, what is interest and what is an interest rate? Interest is the price you pay to borrow money. When borrowing money, the original amount borrowed must be paid back, plus a certain percentage of the total loan amount. This certain percentage is the interest. The exact percentage applied to the borrowed money is the interest rate.
An interest rate is determined by several factors, and each lender uses different factors. Some considerations when deciding an interest rate are credit scores, income, length of the loan (longer will have a higher rate), as well as economic trends which no one person has control over. Understanding interest rates is important because higher interest rates means paying more money over time. For example, a $200,000 loan with an interest rate of 4% simple interest means the total amount paid back to the lender is $208,000. This is the original amount of $200,000 plus $8,000 (which is 4% of $200,000).
What is considered a good interest rate can change almost daily, so be sure to do your research and keep tabs on which direction rates are heading. In mid-2024, a good home loan rate was 6.17% for a 15-year fixed loan, while 6.89% was a good rate for a 30-year mortgage, according to Freddie Mac’s weekly survey. Referencing the example above, a $200,000 loan would have to be paid back as $212,340 over 15 years and $213,780 over 30 years.
In the world of home buying, being a first-timer can have many benefits, such as lower interest rates. That is why it is important to know if you can be considered a first time home buyer. There are more variations of this title than one might think. Did you know you can be a first-time home buyer more than once?
The U.S. Department of Housing and Urban Development (HUD) has qualifications to classify first time homebuyers:
As a few examples of accessible assistance, there is a Texas first home buyer program, while certain occupational groups can receive special bonuses for being first-time home buyers. For those identifying as the following, research what additional benefits are available to you: veterans, service members, educators, firefighters, EMTs, law enforcement, doctors, and nurses. Spending time reviewing all possible avenues of support can save major money in the end.
Houston Habitat for Humanity offers equal opportunities to all. Applicants receive consideration for home ownership without regard to race, color, religion, national origin, sex, disability and familial status. This means a single person can get a Habitat for Humanity home as likely as a married couple, a single parent, or a multiple person household.
Many U.S. households spend a large portion of their income on housing, meaning they have less money for other essentials like food, clothing, transportation, and healthcare. For those without the benefit of a second income from a partner, many single people carry the full weight of expenses alone, including emergencies. For a 1-person household, the income requirements are $33,150 minimum and $53,000 maximum. The single home buyer must also demonstrate a need for shelter, a good credit score, ability to pay, have a willingness to partner, and be a legal resident 18 years of age or older.
Houston is a very large city with many diverse neighborhoods and communities. When looking to establish a permanent home, many consider location to be a top priority. So what are the top neighborhoods for settling down in Houston?
Robins Landing is the newest best neighborhood. It is also Houston’s first affordable master-planned community, featuring stormwater infrastructure, a childcare center, healthcare, banking, a library, and onsite green spaces and trails. Many first-time home buyers especially are moving into the 460 single-family homes on this 127-acre property full of amenities.
The historic Settegast neighborhood is another affordable place for those looking into owning. New Habitat homes have been built here, plus numerous homes damaged by Hurricane Harvey were revitalized with the help of longtime residents. Beautification projects and a community garden are also active!
Want more? Below is an alphabetical listing of additional affordable areas in Houston to consider.
It is easy to be overwhelmed by the process of buying a home but it’s not necessary to go it alone. Houston Habitat for Humanity provides new home help for all. Join legions of Houstonians like yourself by building and buying a home of your own. Start by taking the new Homeowner Eligibility Screener today! It is available in English and en español, and it will take about 15- 20 minutes to finish. Financial, debt, and living information are all needed for completion, so have those details handy before starting. There is no limit to how many times one can apply so start today for a better tomorrow!
