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Homeownership is at the lowest level since 1965 indicating rising property prices, high rents and stagnant pay. Here are the average asking monthly rents for a one-bedroom, one-bath apartment in May 2015 (not including utilities) in Washington state:

 . Seattle        $1,445
 . Bellevue      $1,635
 . Kent            $848
 . Everett        $1,048
 . Renton         $1,058
 . Federal Way $825
 . Kirkland       $1,359
 . Redmond      $1,347  

If you are afraid of becoming a homeowner - let me share with you some of the myths of becoming a homeowner: 

  • You do not have to have 20% down payment to buy a house. We recommend that you put down 20% to avoid paying for Mortgage Insurance. However, at Pacific Coast Financial - we can help you with as little as 3% down payment.
  • You do not have to pay all of the closing costs.  We can help you negotiate for the seller and/or the lender to pay some of the closing costs.
  • You do not have to have a perfect credit. We prefer that you have 720 and above. However, we can help you to become a homeowner with as little as FICO score of 500.
  • Fear of becoming a homeowner? Let me help you with a home warranty that will cover most of your regular maintenance or buy a condominium unit.
  • Let me show you affordable properties in Seattle.
  • Portfolio diversification with positive Return On Investment (ROI).
  • With home equity rising the fastest here in Washington - it can be extracted later on at retirement with reverse mortgage.
  • See how much you can qualify if you are paying this much per month in rent. Monthly mortgage payment includes Principal (P) + Interest (I) + Taxes (T) and Insurance (I) - PITI. If you are buying a condo - it will also includes Homeowners Association (HOA) Dues.
  • Property taxes and mortgage interest are fully deductible on your tax returns.
  • Fully compare costs of renting to the costs of buying a home.
  • Let me assist you in finding which home financing fits your budget and timeline.
  • Let's review what your FICO score is.
  • If I am still not convincing you enough to become a homeowner- then at least buy REIT. 

The vacancy rate in King County last spring was 3.32% - the lowest since 1998, and about 42% of housing units were renter occupied in 2011. In Seattle 54% were renter occupied. Current demand for apartments in the Seattle area is stunning. There were 10,034 more occupied units in June than a year earlier putting the region second only to Houston in the number of units added over the past year. Check out if you are paying an average rent.  Rising rent makes it easier for homeownership.

Above all - let me show you how easy it is to achieve the American dream. Your first step is to obtain a Pre-Approval. Call me for your free consultation.


Posted by Sam Kader on January 9th, 2015 4:40 PM

Here are the average asking monthly rents for a one-bedroom, one-bath apartment in May (not including utilities) according to Washington Insights:

 . Seattle        $1,445
 . Bellevue      $1,635
 . Kent            $848
 . Everett        $1,048
 . Renton         $1,058
 . Federal Way $825
 . Kirkland       $1,359
 . Redmond      $1,347  

Let's find out the costs of buying versus renting.

Posted by Sam Kader on June 28th, 2014 3:47 PM

Live close by South Lake Union, downtown Seattle and commute to Amazon office on Terry Avenue in no time.

Posted by Sam Kader on March 18th, 2014 4:55 PM

If you are unsure of buying a house this year, let me try to convince you that the time is right NOW:

1) Mortgage Interest Rates are on the Rise
The trend is now on the uptick. All of the technical, fundamental, and economic indicators point to mortgage rates moving up in 2013.  All likelihood is that we have seen the best rates already, and waiting is not going to bring them back.

2) Rents are Continuing to Skyrocket
Recently, Zillow reported that rents increased in the U.S. by 4.2% over the last year.  When compared side-by-side, the costs of
owning vs. renting a home easily show the benefits of home ownership.

3) Prices are on the Rise
Home prices in most markets are stabilized, and even starting to increase.  This will be hampered slightly with the over cautious approach of appraisers and lenders, but the trend is still showing prices beginning to rise. The level of inventory is the lowest since 2006. Homeowners can't list because their properties are under water. Thus, many are staying put and wait it out resulting in low inventory.

4) Mortgage Guidelines Will Continue to Tighten
With government intervention added to an already overzealous underwriting standard, we are poised to see it become even more difficult for the average buyer to qualify for a home loan. 

5) FHA Loans To Become Much More Expensive
Starting with FHA Case Numbers pulled on or after June 3rd, 2013, FHA will increase the annual mortgage insurance, making these loans much more expensive for the consumer.  You can read the FHA Mortgagee Letter yourself

Posted by Sam Kader on February 6th, 2013 9:37 PM

Fannie Mae's recent policy change in July 2015 may help you becoming a new landlord. The new policy allows homeowners to convert their primary homes to rental investment properties and buy a replacement home with a new mortgage with no minimum equity stake in the current home. It used to be that you must have at least 30% equity in your primary residence if you wanted to convert it into a rental counting the rent toward your qualifying income for a mortgage on a new primary home plus 6 months reserve of liquid assets. This new rule will help in these set of circumstances:

. Your current primary home is underwater or little equity. 
. You want a larger home to accommodate your growing family or  want to live in a different neighborhood.
. You pass our Pre-Approval test.

Some of the benefits of owning investment property:

  1. Mortgage interest deduction (including credit card interest if use towards property improvements and renovations).
  2. Repair costs incurred for the maintenance of the rental building is deductible. Repairs can be capitalized of expensed depending on the amount spent.
  3. Traveling expenses (gasoline, lodging) is also deductible related to the investment property.
  4. You can hire property management to help you.


Posted by Sam Kader on May 31st, 2010 12:49 PM



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