Charleston Sees A Respite From Housing Affordability Crisis With REV’s StartSmart
In Charleston, aspiring homeowners who have been battling the affordability barrier may finally see light at the end of the tunnel, thanks to a innovative program called StartSmart launched by the community-based organization REV. This initiative is expected to provide a financial relief for first-time homebuyers, amid a worrying housing crisis that has left thousands of households in the metropolitan area burdened with soaring housing costs.
The Housing Affordability Situation in Charleston
The dream of homeownership has been gradually slipping away for many residents in Charleston due to the escalating rates of both home sale prices and rent. As per the 2022 Housing Affordability Policy Survey commissioned by the Charleston Trident Association of Realtors, nearly 76,000 households in the region are grappling with the issue of housing cost burdens.
The cost of renting ascended by a staggering 14% in 2021 and home sale prices saw a boost of 12.5%. Such unprecedented hikes in housing costs have posed a serious impediment to attaining homeownership for many households, besides putting a strain on the local economy. A large chunk of family incomes being spent on housing expenses diminishes their ability to spend on other essentials, thus affecting the overall economic growth and resilience.
How REV’s StartSmart Program Can Help
REV’s StartSmart program has arisen as a saving grace for first-time homebuyers by eliminating the financial burden of down payments and private mortgage insurance (PMI). With this initiative, those dreaming of owning their first house can make that a reality without having to worry about stowing away funds for a down payment or paying monthly PMI premiums.
This initiative brings with it a host of benefits not just for the new homeowners but also for the local community and economy at large. Freeing households from significant upfront costs allows for higher spending or saving potential, which in turn, contributes to tax revenue and economic activity. Beyond immediate economic relief, StartSmart aims to build resilient communities where a fulfilling life isn’t limited to owning a home.
Avoiding Common Mistakes for First-Time Homebuyers
While preparing for the mortgage process, prospective first-time homebuyers are reminded to circumvent some common pitfalls. Comparing offers from multiple lenders and loan types can potentially save considerable money in the long term. Understanding that a housing payment includes more than just the mortgage is another crucial aspect. Costs such as home repairs, insurance, property taxes, and homeowner’s association fees should be factored in when calculating the total payment.
It’s necessary to maintain stable income and employment during the mortgage application process. Any major changes to one’s job or income status could possibly delay or hinder the approval process. Lastly, getting pre-approval for a mortgage loan before house hunting typically helps in securing a better deal and illustrates seriousness on the part of the buyer.
To gain further understanding of the StartSmart program or to explore more mortgage solutions offered by REV, potential homebuyers can visit REVfcu.com/mortgage-loans.
