Tempe, AZ (adjoining Phoenix) is home to Arizona State University and enrollment is at an all-time high. In fact, it appears that student enrollment growth at ASU will surpass available housing. Thus, there may be some great opportunities for parents to buy a home in Tempe, Phoenix, or Scottsdale instead of renting.
Annual tuition and cost of living is up. Even if you are fortunate enough t o receive scholarship aid, paying for tuition and housing can be expensive for most families. However, one way that may help hedge the cost of college is actually, buying a home in Tempe versus renting in Tempe while your child is a student at ASU.
If you are a parent with a student who is moving to Tempe, AZ for at least 4 years, buying a Tempe (Phoenix) area condo at today's prices and with all-time low interest rates on fixed rate mortgages may make more sense than renting for students for 4 or 5 years.
If you consider the cost of the mortgage, Phoenix property taxes, homeowners insurance, HOA (condo association dues) and maintenance and potential gain (or loss) over the 4 years of more.
If the the cash flow is about the same as renting and you are optimistic about the long-term growth of the Tempe / Phoenix real estate market, than buying a home in Tempe is probably a good decision.
If you decided to buy a Tempe, AZ home, get the right financing and take advantage of the "kiddie condo" program, there are many benefits of Kiddie Condo programs and buying a home for your future ASU (Tempe) grad.
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A low down payment (as little as 3% of the purchase price).
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A lower, owner-occupied interest rate on the mortgage Vs the higher investment property interest rate.
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Helps the new borrower establish a solid credit rating and get a mortgage to report on their credit for the future building of a FICO score
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at least one borrower must occupy the property as his/her primary residence, but extra bedrooms could be rented out to help cover the cost of the mortgage payments.
- mortgage interest deductions may apply , however please speak with your tax advisor or CPA
- future rental (after your child graduates ASU in Tempe) or selling of a profit
Tempe homes are selling at as much as 30% discount to prices just several years ago. If you are looking for homes in Phoenix, Tempe, Scottsdale, Mesa or any of the other towns that make up greater Phoenix, a purchase of a condo using the kiddie condo program may have more immediate and long term benefits than renting.
If you are looking to buy a home in Tempe or a kiddie condo in greater Phoenix, contact an expert mortgage professionals who can help with FHA loans and kiddie condo loan programs.
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Copyright © James Wexler * FHA "Kiddie Condo" loan programs for sale in Tempe, AZ *
Contact James Wexler (480) 221-8080 for your Phoenix AZ| Scottsdale AZ Real Estate needs
FHA loans are excellent for those buyers who do not have a substantial down payment or less than stellar credit history. They are very popular here in Mass.
This is a great opportunity for parents to invest in low priced real estate for children instead of renting for 4 - 5 years
being in AZ, and having real estate 50% discounts and 70,000 college students at ASU , parents need to look into these programs
Billy G - buyers have to look into FHA loans, conventional financing takes so much down payment in a market where people need to protect their cash reserves
JM - with low interest rates, and kiddie - condo programs, often buying will be cheaper then renting for college students and you get 5 years of (hopefully) capital appreciation
Daniel - 4+ years of capital appreciation, tax benefits, and owning v. renting, seems like a no-brainer if you can qualify for a loan
Love the FHA program that allows parents to help their college kids get into a nice place to live. Plus, with prices where they are at and the future potential of the properties in Tempe (seeing as though it is land-locked) does/can provide a nice investment for the families.
James, I wish they had had such low prices when my daughter first went away...I love this loan program and I'll bet it helps many parents.
Eric M - happy holidays my friend, and good advice, prices down 50% , low-rates, I am sure you can help them get a great mortgage.
Carole - seems like a great program. Hopefully, parents will see the value of helping kids learn about building credit, and and asset as well
James,
This is always a consideration with the cost of today's higher education. We did it for 3 years for our daughter in the Scranton, PA area and it worked out just great.
I am working on my newphew and his family for next school year right now.
Dan B - great personal example. Not just us , salesman who always think anything that helps people buy is a great idea. Thanks
If you have been in this program and income has changed, try a loan modification to get the payment to an amount you can comfortably afford
Home Save US - loan modifications are the best way for homeowners to stop foreclosure and stay in your home, the governemt is doing everything they can to keep people in thier home this holiday season
In all my years of renovating properties, only once did I buy outside of a college-dominated town or a college area in a large city. College areas are markets that are almost recession proof because the population of the colleges just keeps growing.
Jim Frimmer - thanks for taking the time to comment. Great advice as well. college towns always provide a good consistent paying renter.