BUSINESS + ECONOMY
How to afford a home with today’s prices, an expert weighs in
Apr 3, 2023, 7:00 PM | Updated: Apr 4, 2023, 10:34 am
Dave & Dujanovic discuss how to afford a home even if you feel yoou are broke. given the current price of a home. Photo: Getty Images
SALT LAKE CITY — Home prices have sharply increased in the last few years, leaving some to wonder if they’ll ever be able to afford a home.
Jeff Stout, owner of Fink and McGregor, joined Dave & Dujanovic with hosts Dave Noriega and Debbie Dujanovic on Monday to discuss how you can buy a home, even if you feel like you have no money. They also discuss if it is cheaper to rent or to buy.
Dujanovic started off the conversation by asking, “Is it possible to be broke and still afford to get into a home?”
“I guess that depends on how broke you really are,” Stout said. “Because to buy a house, there’s money involved. But a lot of people don’t have a down payment, and that’s really a mistake.”
He says there are some no down payment programs available. However, those are few and far between.
Stout says these no down payment programs are available to certain individuals.
“One, you have to be a veteran and that’s a VA loan,” he said. “And two, you have to be in a rural area and that’s a USDA loan, and they have income limitations on those. You can’t make too much money.”
Because areas for those types of loans aren’t available in the Salt Lake or Davis counties, Stout says the next best option is lower down payment options.
Home prices with acceptable money source
Noriega asked, “If the average home costs a half million dollars, you’ve got to come up with 3 percent about 15 grand. Now is that straight cash that you turn over? Is that how it works?”
“It has to be money and it has to be sourced,” Stout said. “Meaning, it can’t be what the industry calls mattress money. It can’t be just random cash that shows up out of nowhere. It has to be from an acceptable source.”
Stout has an acceptable source can be money from family, an employer or even an close friend.
Stout says people are better off buying a home.
In his business, Stout has a loan origination software that has a rent versus own comparison. Based on that, after 12 months you are $11,000 ahead by buying as opposed to renting, according to Stout.
“I’m pro purchase and I always have been,” he said.
Dave & Dujanovic can be heard weekdays from 9 a.m. to noon. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app, as well as Apple Podcasts and Google Play.
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