Phoenix ranks as one of the “10 Great Places to Buy a Home For Less Than $800 a Month”, according to a recent article by Luke Mullins, On Friday September 10, 2010 in U.S. News & World Report.
Lower property values and dirt-cheap mortgage rates have combined to restore affordability to many real estate markets that were once wildly overpriced. “Right now, housing is about as affordable as it has been since at least the 1970s,” says Patrick Newport, a U.S. economist for IHS Global Insight.
Mullins writes…Â
“Phoenix, Ariz.: After appreciating substantially during the real estate boom, the median home price in the Phoenix area has dropped nearly 44 percent since 2007. Despite the recent turmoil, the area’s sunny climate and abundance of outdoor activities continue to offer a wonderful quality of life for retirees or growing families. The median home price in the Phoenix area was nearly $145,000 in the second quarter of this year. After putting 20 percent–or $29,000–down, monthly payments for mortgage principal and interest on a median-priced home in the Phoenix area total about $575.”
Most first time home buyers are not putting 20% down but more often the required 3.5% down required for FHA loans which would equate to only $5075 down for the same median priced home example above.Â
Also, there are many Neighborhood Stabilization Programs available in Phoenix as well as $0 down or low down home loan programs. For example Phoenix HUD governement foreclosures require only $100 down and rural communities such as Queen Creek, San Tan Valley, Apache Junction and Maricopa are eligible for the very popular Phoenix USDA $o Down Home Loan Program. Veterans, active duty personnel, as well as some members of the National Guard and military reserves can qualify for zero-down-payment mortgages through the U.S. Department of Veterans Affairs.
Here is an example of a home in Queen Creek that qualifies for the USDA $0 down loan;
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