All About Down Payments

You might be eager to buy a new home, but the down payment has you questioning whether it is a realistic dream. The good news is that it may be more achievable than you think.  

While a 20 percent down payment has been the traditional standard for purchasing a home, the fact is that it is not mandatory and there are loan options that have a much lower minimum requirement. That means you could be closer to your homebuying dream than you realize. 

How Much Down Payment Do You Need to Buy a House? 

According to the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. In fact, for all homebuyers today it’s only 15%; and just 8% for first-time homebuyers.   

Lenders and government programs have different down payment requirements, depending on the type of loan being used. While most home buyers purchase homes with conventional loans, other financing options are available.  

Types of Mortgage Loans 

  • Conventional loan: These loans don’t have backing from a governmental program and, therefore, have stricter standards for credit scores, debt-to-income ratio (DTI), and down payments. Specifically, first-time home buyers must provide a down payment of 3% or higher, and experienced home buyers must put down at least 5%. 
     
  • Federal Housing Administration (FHA) loan: Backed by the FHA, these loans require private lenders to follow government regulations when providing loans to borrowers with weaker credit and lower incomes. Because of the more flexible loan requirements, FHA loans require a 3.5% down payment for all buyers. 
     
  • Department of Veterans Affairs (VA) loan: VA loans are for veteran and active-duty military members and eligible surviving spouses. have minimal financial hurdles, and oftentimes do not require a down payment. 
     
  • U.S. Department of Agriculture (USDA) loan: USDA loans are for borrowers in qualifying rural areas with moderate financial requirements, and borrowers don’t have to have a down payment to qualify. 

Down Payment Assistance 

There also are a variety of resources available to help with a down payment. In fact, there are over 2,000 homebuyer assistance programs in the U.S., many intended to help with down payments. Your lender can help identify programs for which you may qualify. If you’re ready to become a homeowner, lean on your trusted advisors to find resources that can help you make your dreams a reality.  

At Vutech | Ruff, Cutler Real Estate, our team is ready to help. We pride ourselves on our in-depth knowledge of the Ohio real estate market and financing options available for our clients. 

Finding your dream home is one thing. Your dream experience is another. Contact us and let’s have a conversation. 

Prepping for Spring

As the weather warms up, so does the real estate market. This means now is the perfect time to prepare your home to sell in anticipation of a busy spring selling season in Central Ohio.  

Although it may seem a bit overwhelming to get your home ready to sell, there are a few simple things you can do to ensure your home gives a great first impression to potential buyers.  

Curb Appeal

Spring is the ideal time to spruce up your home’s exterior. Start by giving your lawn a fresh mow and trimming any unruly bushes or trees. Consider adding pops of color with seasonal flowers or potted plants to enhance curb appeal. A well-maintained exterior sets a positive tone before buyers even step foot inside. 

Declutter

Create an inviting atmosphere by decluttering and depersonalizing your space. Clear countertops, shelves, and closets of excess items to make rooms feel more spacious and allow buyers to envision themselves living there. Pack away personal photos and belongings to help buyers focus on the potential of the home itself. 

Let There Be Light

Welcome the natural light of spring into your home by opening curtains and blinds during showings. Replace any outdated light fixtures or bulbs to brighten up rooms and create a warm, inviting ambiance. Adequate lighting can make spaces feel larger and more inviting to potential buyers. 

Deep Clean and Organize

A thorough cleaning is essential to showcase your home in its best light. Pay attention to often overlooked areas such as baseboards, light switches, and ceiling fans. Consider hiring professionals for deep cleaning, including carpets and upholstery. An organized and sparkling clean home speaks volumes to buyers about the care and maintenance of the property. 

Neutralize Color Palettes

While you may love bold colors, potential buyers might prefer a blank canvas. Consider repainting walls in neutral tones to appeal to a broader range of tastes and make it easier for buyers to imagine themselves in the space. Neutral colors also help rooms feel more spacious and allow buyers to focus on the architectural features of your home. 

Showcase Outdoor Living Spaces

Take advantage of the warmer weather by highlighting outdoor living spaces. Clean and stage patios, decks, and backyard areas to showcase their potential for entertaining and relaxation. Invest in outdoor furniture or accessories to create inviting outdoor vignettes that inspire buyers to envision themselves enjoying the space. 

Make Necessary Repairs

Address any lingering maintenance issues to ensure your home is in top condition for potential buyers. Fix leaky faucets, squeaky doors, and any other minor repairs that could detract from the overall appeal of your home. Investing in these repairs upfront can prevent potential buyers from negotiating down the asking price later. 

Once your home is prepped for sale, it’s time to find a real estate agent to help guide you through the selling of your home.  Your agent should be knowledgeable about the market, know the listings on the MLS in your area, as well as what is coming soon, and be familiar with recent comparable sales in your neighborhood.  

From pricing the home to suggesting minor updates and fixes around the house to get it ready for selling, your agent can guide you through the process to closing. 

At Vutech | Ruff, Cutler Real Estate, we stand ready to offer our expertise. We consistently rank among the highest-producing teams in Central Ohio. Explore our qualifications or initiate the home-selling process by reaching us at 614-897-0618 or contacting us online today. 

What To Expect in the Central Ohio Housing Market: Fall 2023 

When we talk about the housing market in Central Ohio, the common theme is around interest rates – higher rates. Sellers only want to sell if necessary, and buyers continue to have difficulty finding homes due to low inventory.  

It can be hard to understand what is happening right now, as well as what to expect as we head into the final quarter of 2023. Based on our years of experience, here are three trends we expect to continue in the Central Ohio housing market this fall. 

Sellers will have a decision to make 

Sellers are deciding if they really “have” to move. The frenzy of record-high housing prices we have seen over the last few years is starting to cool down as the market is trending toward stabilization. 

Keep in mind that many homeowners have established equity in their homes and are sitting on a mortgage payment with a record low of 2-4% interest rate. In fact, the Columbus Board of Realtors recently reported that between January 1 and June 30, homes, on average, appreciated by over 20%. And they will continue to increase in value, contributing to higher home prices. 

The good news is that we are seeing an increase in inventory and fewer bidding wars.  

Buyers regain negotiating power 

Now that the buyers have more options, they have gained some leverage. While still contingent on factors including financial situation, property, neighborhood, etc., buyers are beginning to see opportunities such as:

  • • Opportunities for negotiation 
  • • The ability to offer under-asking if they have cash 
  • • Less money out of pocket 
  • • Less waiving of appraisals, contingencies, etc.

Less focus on interest rates 

Interest rates are higher; there is no way to avoid that. But there are other ways to save money when buying a new home in the current market. Remember those opportunities for negotiation that we mentioned?  

Our seasoned real estate expert Jacquie Goumas Fox notes, “People have grown accustomed to the higher interest rates. They have accepted them for what they are and factor that into their budget.”  

The bottom line 

The supply/demand imbalance will continue in Central Ohio. With the news of Intel, there are plenty of economic drivers for business, and entertainment opportunities are abundant. The fact is that while we have always known that Central Ohio is a great place to live, the rest of the world is figuring it out for themselves and the desire to live here will remain high.  

When you are ready to have a conversation about buying or selling, turn to our trusted team at Vutech | Ruff to help you navigate the complexities of the Central Ohio real estate market. We go beyond the standard practice and work collaboratively and creatively to help you reach your desired outcome.

It’s one thing to find your dream home, it’s another to have your dream experience. 

The Vutech | Ruff Way

The Vutech | Ruff Way

With the real estate market on a never-ending “rollercoaster” of highs (interest rate hikes) to lows (low inventory), it is no wonder why it is so challenging to navigate the complexities of buying and selling a home. This is why we have stood by our #1 goal, and that is to make the process as easy as possible for our customers.   

We were recently asked the question; how do you best describe an experience with Vutech | Ruff brokerage? We believe it is these six points that differentiate us from others in the industry.   

  • Simply put, we know Central Ohio. From the schools to the communities to all those “little things” you just would not know about Central Ohio unless you have lived and worked here your entire life. Marilyn Vutech and Jeff Ruff have been partners since 1993 and boast a team of fourteen licensed agents who specialize in all areas of real estate, including buying, selling, investing, and relocation to Central Ohio. Inside track? We think so!  

  • In this challenging market, experience is KEY. Not only has Vutech | Ruff been serving Columbus, Ohio for over three decades, but we recently joined the Cutler Real Estate brand which has been helping people buy and sell homes for 75 years. Their core values emulate ours and our combined experience and expertise are unparalleled in the market.   

  • We offer effective strategies and superior services. Buying and selling homes looks a lot different now than it did just a few years ago. Technology and digital spaces have never played such an integral role in real estate, which makes the access to tools and resources that we have since joining the Cutler Real Estate brand simply invaluable. And, frankly, they are tools that others in our industry do not have.   

  

“The technology and support from Vutech | Ruff, and the constant commitment to excellence, gives them a very boutique-like feel without feeling antiquated.”  

  

  • Our combined team approach works. From open houses to showings to just “having each other’s back”, our commitment to one another and our clients comes across in everything we do. When asking our clients for words to describe our team, we were given “professional, down-to-earth, and very reliable.”  

  • We personalize…everything. We believe that listening to your needs first is what builds a strong partnership in which we can work best together. Things like requirements, budget, and lifestyle must be at the forefront of our goals.   

  • Dream homes are one thing. Your dream experience with the process is another. We understand the emotional toll that listing and/or searching for your home can take on you and your family. We hope to make the process as easy as possible- from home inspectors and mortgage brokers to lawyers and contractors, we can connect you with the best in the business.   

The real estate process is complex, and our goal is to make it smooth and stress-free for you. Our “all-in” approach and out-of-the-box thinking, along with our years of experience and expertise allow us to deliver the highest quality of service to you. This is how we describe the Vutech | Ruff experience.