New Home Buying Tips
& Realty
Make Home Ownership a Reality

With two bedroom apartments renting for anywhere from $600 to $1700 a month the lure of home ownership can be strong, just to reduce those monthly payments. There are plenty of other reasons why buying can be better than renting or leasing such as tax benefits and home equity. But if you've never owned a home before, the prospect can be intimidating. Fortunately, there is help available from HomePlace Realty, the City of Austin, non-profit organizations, and private companies to help demystify the home buying process and provide assistance to those who have put off home ownership due to lack of money or knowledge.

Austin Housing Finance Corporation (AHFC)

First-Time Homebuyer Resources
Learn about their Down Payment Assistance Program and

Home Mortgage Assistance Program for first-time buyers.

A "first-time" homebuyer is defined as someone who has not owned a home in the last three years.(as per income tax returns)

Qualified, lower-income families can get help when they help to build their own new homes. See if you and your family qualify.

Advantages of Home Ownership

You've been renting for awhile. You've enjoyed it. You have the freedom to move without the worry of selling a home first. You don't make repairs or pay property taxes. But something's missing, a sense of security, or perhaps a gut feeling that your monthly rent payments are going into a bottomless pit.
You think it might be time to take a step in another direction. You're ready to buy a home, but you wonder--are there really advantages to owning a home?

Tax Advantages of Home Ownership

The US government allows tax incentives that make it possible for many homeowners to exceed the standard yearly deduction. Your state may offer the same benefits.
A tax deduction for the yearly interest on your primary and vacation home. This amount equals a big chunk of your total payments for the first several years.
You can deduct the total amount of your yearly property tax bill.
If you refinance to consolidate other debts, the interest on the home equity loan is tax deductible.

Homeowners Have More Stable Costs of Living

Monthly payments can change if property taxes and insurance go up, but increases usually happen gradually.

Rental fees can sometimes be more unpredictable.

Appreciation of Your Investment

No one can make any guarantees, but over time most real estate increases in value. If you are careful about your selection, and you treat the home kindly, it will likely be worth considerably more in five years than it was the day you bought it.
Your initial investment may be as little as 3% (or less) of the home's sales price, but you are the one who benefits from appreciation of the property. Not the bank, not the landlord.

Your Equity Grows Each Month
Even though interest makes up a good portion of your monthly payment, especially during the first years, the amount paid toward the principal increases each month. Appreciation and equity work together, helping you use your initial investment to move into a home with more features if that's what you wish to do.

You Are In Control
The house is yours. You are the only one with the power to allow anyone to enter the house to inspect it. Paint it and decorate it in any way you wish. Put nails in the walls to hang pictures and artwork. Bring home a pet without asking anyone if it's allowed. It belongs to you.


First-Time Homebuyer (Resources)

The Austin Housing Finance Corporation offers several resources to assist first-time homebuyers including the

Mortgage Credit Certificate Program (MCC).

A "first-time" homebuyer is defined as someone who has not owned a home in the last three years. Additionally, the AHFC is a leading force in the new construction of reasonably priced housing in Austin. We look forward to helping you make homeownership a reality for you and your family.

Community Lending Office
Down Payment Assistance (DPA)
Mortgage Credit Certificate Program (MCC)


The Down Payment Assistance Program (DPA) provides qualified, first-time homebuyers with a zero interest loan to assist with purchasing a home located within the Austin City Limits. The program offers a maximum amount of $5000 in assistance, based on need. Assistance may be increased to a maximum of $6000 for those applicants using a Mortgage Credit Certificate. The assistance is used to cover the down payment on a home and eligible closing costs.

The DPA program assists families with incomes at or below 80% of Median Family Income (MFI). The loan is due and payable upon the first lien payoff (refinance or home equity loan), sale, lease or transfer of title.
The DPA program can be used with the AHFC's other first-time homebuyer resources including the Mortgage Credit Certificate Program and Homes for Sale. If you are applying for financial assistance from the Austin Housing Finance Corporation, you must complete a Homebuyer Education Course prior to closing.


Community Lending Office

The Austin Housing Finance Corporation's Community Lending Office offers one-on-one assistance with our first-time homebuyer and home repair programs. The office is centrally located to serve all residents, and walk-ins are welcome between the operating hours of 8 a.m.- 5 p.m.
Effective July 26, 2004, their office will be located at the address below:

Austin Housing Finance Corporation
Community Lending Office
Street-Jones Building
1000 East 11th Street
Austin, TX 78702

To speak to the lending staff, please call (512) 974-3863. Se habla español.
While at the Community Lending Office feel free to pick up an application for their Down Payment Assistance or Mortgage Credit Certificate(MCC) Program. Their lending team is available for guidance through the application process.

For assistance or consultation
on a new home purchase

     Bob Bregenzer 512.775.4575
Debbie Loesch 512.576.4884 toll free 866.598.7368
Darin Chaffin 512.796.5492 toll free 866.604.7368

                      
HomePlace Realty's broker has over 20 years experience
as a residential real estate broker
or email us your information at START YOUR SEARCH


Moving on up
Local group help former renters buy houses


Perhaps the biggest financial decision consumers can make involves purchasing a home. The often-daunting process of saving for a down payment, qualifying for a mortgage loan and balancing financial parameters compounds the anguish

Most potential home buyers have been renters for years. Of those individuals who rent, at least 30 percent can qualify for a home loan, market research shows.

My Home Angel Housing Assistance Corp. and the  strive to benefit buyers and sellers and, therefore, drive the local mortgage, home building and residential real estate industries.

Austin nonprofit My Home Angel Inc. gifts down payments to qualified first-time home buyers. Founded in July by long-time Austin businessman Edgar DeLong Jr., My Home Angel's mission is to make home ownership possible for everyone.

"Our research showed that many renting households can qualify for a home loan, but they continue to rent because they simply lack the funds to make the down payment on a home of their own," DeLong says. "Most renting households have been conditioned to believe that they must first save thousands of dollars toward a down payment before they can buy a home. With My Home Angel, we can change that perception and make a difference by creating awareness of our gift program among these families."

DeLong says he was surprised to learn that many private and governmental programs existed to assist home buyers with their down payments.

"We learned that while many in the industry -- home builders, realtors, lenders -- were aware of down payment assistance programs, there was little to no awareness among prospective home buyers," he says.

My Home Angel creates awareness through a direct-mail program. In August, DeLong's staff sent postcards to 5,000 renting households in the community. Upon hearing from prospective home buyers, My Home Angel refers the prospects to preferred lenders and real estate agents.

"Generally, these families have not yet begun looking for a home, so they do not know where to begin," DeLong says.


Continued >>>

Our licensed real estate agents can  help you with a new home purchase when the time comes. Plus, if you need a short term lease while your home is being built or while you look around for a home, we can assist you. We know the apartments that will work with shorter term leases with the smallest upcharges that fit your other criteria  Also, there are some Austin apartment communities that offer a 'homebuyer's clause" as a way to break a lease when buying a home.