Bellingham Family 1st Home Made Over 50000 Within Their 1st Year Of Buying

Bellingham Family 1st Home Made Over 50000 Within Their 1st Year Of Buying

Bellingham Family’s 1st home made over $50,000 within their 1st year of buying1219 Humboldt

First time home buyers put less than $7500 down

How would you like your home to work as hard as you do? In today’s real estate market, it is possible. Today I am going to share with you a real life story of actual clients of mine who made over $50,000 within their first year of homeownership; and they bought with less than $7500 down.

Last year, I helped the ‘Smith’s (not their real last name) buy a home in Bellingham. The home we wrote an offer on was 1219 Humboldt St. (See the details here). We closed for $207,000 and got a new roof with it. As you can see, the home is located next to the freeway in the York neighborhood. We liked it because it had a lot of potential with the unfinished attic and unfinished basement, and potentially another bathroom. Those are still unfinished.

As first time home buyers, they applied for the WA Mortgage Credit Program, a program that gives first time home buyers a tax credit based on the interest they paid over the year for the life of the loan. (Find out more info here). For the Smiths that was nearly an $1800 credit this year. Then we financed their private mortgage insurance into the loan to keep their payment as low as possible. Their interest rate was 4.75% and they put 3.5% down (less than $7500). 

Now, a year later, they have gone back to their lender to refinance. Their home appraised for $260,000! Since rates are still ridiculously low, they lowered their rate to 3.99% (saving tens of thousands of dollars over the life of the loan). They still have no mortgage insurance. And, now they can decide if they want to access some of that equity to put into the house via upgrades, or lower their payment to WELL BELOW WHAT RENT WOULD BE on the place.

They have done some work on the house over the first year. They ripped out the carpet and refinished the floors and they took down the 70’s paneling and plastered/painted the walls. Over the course of the year, they put about $8000 into repairing/upgrading the home, and much of the work was done themselves, but nothing very major has been done to the place. Just cosmetic stuff.

This is not a rare case; this is Bellingham’s real estate market. If you purchased a home within the last few years, you really owe it to yourself to look into refinancing. Rates are still EXTREMELY low and prices have skyrocketed due to low inventory. If you are thinking about buying, this is still a possibility. Prices are still going to rise and Bellingham has very little land left to develop. We typically trend 2 years behind Seattle’s market and just look at what is happening there!

The point of this story is that homeownership is still a possibility and has some incredible benefits that renting will never have. It takes a little creativity, but you can still own for less than what rent is in Bellingham; and rent is only going up. There are programs for first time home buyers: down payment assistance, tax credits, etc. that a savvy real estate broker can point you towards. There are rehab loans that can take a cheap dump of house and turn it into a wonderful home. There are even ways you can buy in Bellingham for ZERO money down. If you have questions about home ownership, contact me. Let’s see how we can make your dream come true!

Michael Voth
Real Estate Broker|Bellwether Real Estate

Heather Williams Headshot
Phone: 360-599-8946
Dated: July 7th 2016
Views: 1,392
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