Groundswell Capital's sister organization provides downpayment assistance programming as a pathway for generational wealth.
The Tucson Industrial Development Authority has been providing multiple options for downpayment assistance to Tucson & Pima County homebuyers for over a decade. Are any of these myths to homeownership keeping you stuck paying some else's mortgage?
1. You need a 20% downpayment to purchase a home
This may be one of the biggest misconceptions among prospective homebuyers. Although it was once the case to have at least 20%, the mortgage approval landscape has adjusted to account for the increase in home prices over the past 40 years. Today, homebuyers are successfully becoming homeowners with as little as 3%-4% down. Additionally, there is always some form of downpayment assistance program available to help cover the out of pocket costs involved in purchasing a home.
2. Interest rates are at a historic high
With rates as low as 2% just 5-years ago, it can seem like the interest rates increases recently are bringing the market to an all-time high. Although today's rates are coming to us at between 6.5%-8% based upon the among of downpayment assistance a homebuyer requires, the average rate on a 30-year fixed mortgage is nowhere near the all-time peak of above 16% in 1981.
3. You should wait to buy a home until prices are lower
Although home price increases have slowed, they are expected to rise between 1.6%-4% in 2025. For home prices to drastically lower in a short period of time would mean a massive economic downturn. That home prices continue to steadily increase also means that the rate of equity accrual is positively impacting homeowners. And with every home sold in Tucson & Pima County, about $136,000 is circulated back into local economy.
4. You should find a home before you apply for a home loan
Being pre-qualified allows prospective homebuyers to know how much home they can afford, and positions them to be ready to submit an offer without delay when they find the right home. This is an important step to provide clarity in the best path forward when working with a professional to identify the best home that meets you and your family's needs.
5. It’s cheaper to rent than own
In the short-term, renting may be cheaper although every dollar spent on rent is building someone else’s wealth. Long-term, owning a home requires upkeep but ensures that you are building your own wealth and accruing interest over time. Groundswell Capital's EarthWise helps homeowners make the necessary upkeep and upgrades to their home to increase affordability through sustainable solutions.
For questions about homeownership, contact Nicole Johnson at nicole@tucsonida.org.
About Groundswell Capital
Groundswell Capital is a mission-driven lending nonprofit dedicated to sustainable economic growth, focusing on clean energy, small business financing, and community development. By aligning financial returns with environmental and social responsibility, Groundswell Capital is helping to shape a resilient and equitable future for Arizona.
For media inquiries, contact:
Dre Thompson
President,
Groundswell Capital
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