How your home’s location affects your loan
Are you having trouble finding a home? The location you choose may affect more than you think. If you prioritize what’s most important to you, and avoid what isn’t, we may be able to match you with a better loan to fit your life.
Rural vs urban:
In general, home prices are higher in cities, but what counts as rural may surprise you. The USDA provides special financing to homebuyers who purchase in defined rural areas. The good news is that the USDA Rural Development Guaranteed Housing Loan Program is available to approximately 97% of eligible homes in the U.S.
Parents are willing to pay more for a home in a highly rated public school district. If you don’t plan on having kids in public school, you could save a lot of money looking outside those areas.
Long term vision
Many municipalities looking to revive parts of town that have been neglected by time do so with homeownership grants. By providing businesses and homebuyers financial incentives to move there, many cities have turned undesirable parts of town into the next trendy neighborhood, giving homeowners great returns for a smaller than usual investment. Keep in mind that you may not see the full transition for 5-10+ years and it’s dependent on a healthy economy.
Not all new developments are the same. If new is important to you, it’s easy to get distracted by the bells and whistles and overlook location flaws. If the area hasn’t been developed before, keep an eye out for potential natural hazards such as heavy rains, winds, fire or snow likely to affect the area. You may want to buy extra insurance policies to protect your investment.
If you have any questions on how your chosen location may affect your loan, just ask! We sort through complexity and mind the details, so you can spend your time breathing life into your new home.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply.