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!