I realized a long time ago that I do not have the heart of a salesman. I have the heart of a teacher, an advisor and a protector.
I empathize
with anyone who longs to make a buying decision on Martha’s Vineyard, because
it is their dream and they know it will be good for them and will enhance their
life in ways that almost nothing else will. When I made the decision it
was like immersing myself in the fountain of youth and from that decision many
other positive life enhancing events sprung forth.
I find that
many people today are scared to make that huge decision so they imagine all the
reasons why they cannot or will not have what they want. For many people
that means assuming that they will not be able to qualify for a mortgage or
have enough cash for a down payment.
I would like
to present some graphics to enhance this conversation.
According to
Freddie Mac, approximately 42% of all 30-34 year old potential buyers believe
that they need a minimum of 15% to buy a home.
Relating this
to Martha’s Vineyard, if you are purchasing as a first time home buyer or
purchasing a residence either as a move up buyer or as a first time home buyer
there are local programs allowing a down payment as little as 3% down.
I am not a
mortgage expert but I am the source to the source. With the disclaimer
that all loans are made according to the specific profile of the applicant,
Santander (Formerly Bank of Martha’s Vineyard) has given me this brief summary:
A 30-year
fixed rate loan with 95% financing is available for a primary home purchase and
is not restricted to first time home buyers.
The Mass
Housing Program (MPH) has 97% financing available to first time homebuyers and
restricted to low & moderate income families.
FHA has 96.5%
financing available on qualifying purchases for both primary purchases and is
not restricted to first time home buyers.
Here are a
couple of charts to give you something to think about if you are unsure about
waiting another year to make your life more complete, or if you are thinking
the prices are going to go down significantly.
(Please note that the
interest rates were as of the time this chart was created)
I do believe prices
will go down more on Martha’s Vineyard but not in double digits as they have in
the past. As soon as the inventory starts to get absorbed, and it will, prices
will start to increase and then the path will be clear. First we will
enter a neutral market and then a seller’s market. This is the normal cycle for
Real Estate and we go through it about every 15 years.
And where do
we go from here?
If you want to do more than just dream about Martha’s Vineyard I
suggest you start now by getting in touch with a lender and find out what you
can comfortably afford. List your ‘wants’ and ‘needs’ and then in the fall you
can get out there in the market and be clear, confident and focused. Be a winner!
