Tag Archive: Investment

Down Payment Tips

Many people dream of owning a home but don’t think it’s possible because they lack the resources for a down payment and closing costs. Here are tips for securing that down payment.

1) Borrow from your retirement account: Many people have been investing in a 401(k) plan or traditional IRA for years and first-time homebuyers may borrow up to $10,000 for their down payment without incurring a penalty. For those self-employed or if your employer allows it, you also can borrow up to $50,000 from your current 401(k) and pay yourself back over five years at a low interest rate.

2) Ask family: Sure, you may be too proud to ask for money, but if relatives can help you and your family move into that dream home, isn’t it worth it? If you do get help from a family member, the lender will ask you to sign a gift-letter form, attesting to the relationship. The lender may also require your relatives to explain where they got the money and prove that they are financially able to make such a gift.

3) Look for down payment assistance grants: Down payment assistance and community redevelopment programs offer affordable housing opportunities to first-time homebuyers, low-income and moderate-income individuals and families who wish to own a home.

4) Come to a lease/purchase agreement: Homeowners who can’t sell their homes in this market may consider a lease/purchase agreement, where you rent the home you want to buy and a percentage of your rent is applied toward the down payment. If you go this route, make sure you get a contract outlining all the details so both parties are protected.

5) Add it to the wedding registry: Several mortgage companies allow those getting married to set up a down payment registry. This is a great way to celebrate the joining of two people in matrimony.

6) Cut back and save: If none of the other ways will work for you, there’s always the old-fashioned “saving for a rainy day.” Try putting aside 10% of each paycheck and make your meals instead of going out for them. If you’re married, save the money you would spend on birthday, anniversary and Christmas presents and put it toward your house. You also may need to forget that vacation this year.

These sacrifices may seem significant but they will be worth it once you’re inside your own home.

Prudential Showcase Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

J Mangham Photo cropped and websizedInvestment Seminar with Starker Services, Inc.
Represented by John Mangham, CPA
Presented by Prudential Showcase Properties

Friday, April 26th 10am-2pm
Wiregrass Museum of Art
Great Hall 126 Museum Ave.
Cost of Seminar $20
Lunch will be provided
RSVP by April 24th to 334.792.7474

Click Here to RSVP today!

The Foreclosure phenomenon: Competing with Hedge funds in Today’s Market

Part 1: Seven Secrets to Successful Investing— Why everyone is interested in buying houses today and hedge fund’s impact on the market. This segment reviews and explains investor objectives and offers rules of thumb used by successful investors.

Part 2: Life on the Courthouse Steps— The nuts and bolts of foreclosures and how we got where we are today in the frothy foreclosure arena. This segment covers the foreclosure process from inception of a mortgage through the crying of foreclosure sale.

Both segments include strategies used by successful investors
both large and small. Don’t miss this opportunity to join a seasoned investor as John Mangham walks you through lessons learned from investing in residential real estate for over 3 decades. During the past several years John and his partners have purchased over 200 foreclosure properties, have raised millions in private equity, assembled two buy and hold funds, and have resold over 150 properties in one of the most challenging markets we’ve ever seen.

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Single-family home sales will continue strengthening, according to latest report from the Urban Land Institute (ULI).

The Real Estate Consensus Forecast, ULI’s semi-annual survey of the nation’s leading real estate economists and analysts, examined 26 economic and real estate indicators in the third quarter. The report predicted healthy estimates for single-family housing as compared to ULI’s March report.

“The predictions diverge from the previous forecast [from March] in that it is more optimistic regarding the single-family housing sector,” said ULI Executive Director Dean Schwanke.

According to the report, single-family housing starts are projected to increase by 145,000 units in 2013, while home prices are expected to rise 3.9%. Meanwhile, single-family home starts, which have been near record lows, are projected to increase from 530,000 in 2012 to 800,000 in 2014. All of these numbers show improvement from ULI’s March forecast.

“Finally, the single-family housing sector is experiencing a turnaround that is expected to continue,” said Schwanke. “The ULI Consensus Forecast from March projected a stabilizing housing market, and the most recent numbers have been strong, leading forecasters to be even more optimistic going forward.”

Prudential Showcase Properties is an independently
owned and operated broker member of BRER Affiliates LLC. Prudential, the
Prudential logo and the Rock symbol are registered service marks of Prudential
Financial, Inc. and its related entities, registered in many jurisdictions
worldwide. Used under license with no other affiliation with Prudential. Equal
Housing Opportunity.

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