Finding Affordable Housing Options in Tampa

Although the average cost of a home in the New Tampa area has fallen in the past 18 months, the cost of buying a new home, condo or foreclosure is still difficult for many first time home buyers or others on limited incomes. Fortunately, it is often possible to find an affordable home that fits your budget without sacrificing quality or over-extending yourself financially. Use these simple tips to get started:

1. Calculate the total cost. Home ownership can be expensive and affordable homes aren’t always the oldest or lowest priced homes. Maintenance, repairs and high insurance premiums can often increase the total cost of home ownership so it is important to compare the total cost of a new home in good condition versus an older home in need of expensive repairs.

2. Shop for low interest loans. Tampa home buyers are still able to obtain very favorable low interest rates especially if they take time to shop around. One of the best ways to lower your overall monthly payments is to get a better interest rate; for example, a $200,000 home financed at 6.5 fixed rate for 30 years would be $1,264 per month while the same home financed at 8.5 percent fixed for 30 years would cost $1,538 monthly.

3. Look for a longer loan period. When purchasing a home in Tampa, most people typically finance for 15 or 30 years however, it is possible to select many other repayment options. For example, 20, 25, 33, 35 and even 40 year repayment options are possible. Just keep in mind the longer the payment period the more interest is paid over the life of the loan. However, many first time home buyers would benefit from buying a low cost foreclosure or other home with low interest rates and a longer repayment period that allows them the flexibility of making small payments now then increasing their pay-back amount as they finish college or other life events take place.

4. Variable rates or hybrid loans. Although these have received a great deal of negative publicity in recent months, there are times when variable rate or other hybrid loans can be a great tool for buyers. Be sure you understand the full terms of the loan before buying.

5. Search for assistance. Many home buyers qualify for first-time homebuyer assistance programs, help with closing costs, special finance programs and other incentives that can help reduce the cost of buying a home. You never know unless you ask!

6. Find foreclosures. Without a doubt, one of the most affordable options in the Tampa area include foreclosure sales. Many of these are newer homes in convenient locations that require little to no maintenance or upgrades. Sign-up for a list of foreclosures in areas of interest throughout the Tampa area and find out how easy it is to buy an affordable, new home with instant equity.

Lance Mohr is a full time professional Realtor in Tampa, Florida. Please view our New Tampa real estate and Dallas real estate websites.