Rent in the St Pete and national markets alike is on a constant upward trend. As noted by the rental listing service RentCafé, averages for rent nationwide hit a “record high of $1,409 in July, up 2.8 percent year over year.” And even on the micro-level, one of the last clients that I helped get into a first-time buyer program ended up paying about $75 less per month on her overall mortgage escrow monthly than she was paying in rent.
For those who don’t quite yet have the funds ready for a down payment, there may be hope in sight. The Florida Realtor’s website recently found that Freddie Mac is introducing a new program that will actually create a cap on new rental hikes for borrowers that qualify for a cost-effective new loan program. The idea is to offer competitive loans, but with caveats that benefit those in need of more affordable housing.
The first idea is to obligate borrowers to make “at least 50 percent of their units affordable to those earning the local median income or less” and then watching to ensure they “limit rent increases on 80 percent of their units.” The combo will be quite powerful, incentivizing builders by offering more favorable loan terms while creating opportunities for others. For the full story, check out the page on the Florida Realtor’s News feed here. For more information on great buying opportunities in the St Petersburg area, Contact our team today to get the service you deserve.
Image courtesy of the City of St Pete via Flickr