Will I EVER be able to Buy a Home?

By Katherine Allen, UF/IFAS Extension

Will I EVER be able to Buy a Home? I hear this statement all the time, since I teach homebuyer classes. It is no lie that the costs of purchasing a home have skyrocketed.  In our area of the state, we also see less homes available for sale in the first-time homebuyer price range.

It is scary.  I remember the feeling from the first, second and third time I bought a home.  It is a huge purchase no matter the price, the size, or how many times you have been through the process. So, how do you know what your price range is?

Figure out how much you can afford

     When first starting out, it is helpful to have a ballpark figure of how much you can afford. Start with your gross income (the amount you make before taxes and other costs are taken out). If you are purchasing the home with someone else, include their gross income as well. Your gross income is what you make from all employment, plus any overtime, bonuses, commission, retirement, veteran’s benefits, disability payments, rental income or investment income.   Multiply your gross income by 0.25.  Take this number and divide by 12 for a good idea of what you can afford each month as your payment. This payment will include principle (the purchase price of the house), interest, taxes, and insurance (PITI).

     An even better practice would be to track your current expenses to see if the estimate is reasonable based on your standard of living. A spending plan is essential to making sure you understand where you are spending your money.  This can also identify where you have spending leaks.

Consider this

     One thing that is hard for many homebuyers to hear is that they may have to re-adjust their expectations. This purchase doesn’t have to be your “forever home”.  Consider buying a smaller home and upgrade when you have the money or prices come down.  You may also want to look at properties that may fit your needs but may need to have some renovation or repairs. Another option may be to look for a property that is beyond your initial search and may require a manageable commute.

Save more!

    The downpayment is what you pay upfront at closing to make up the difference between the price of the home and the amount of the mortgage. The more you put down, the less you have to borrow. Remember, interest is what you pay for the luxury of borrowing the money.

     The downpayment isn’t the only money you will need to save.  You will also need to have cash on hand to cover expenses such as the closing costs, which include home inspections (four-point and wood destroying organism), as well as earnest money which is a deposit that you put down to show that you are serious.  Many lenders also look at your savings to make sure you have enough money to cover several months’ worth of mortgage payments, taxes, and insurance.

Check your credit.

     Your credit score is based on how well you have managed credit cards, loans, etc. in the past.  It helps lenders identify whether you would be a good risk and that you would be able to pay back your debt. Credit scores range from 300-850. A higher credit score can help to get better (ie. Lower) interest rates, which saves you thousands over the life of the loan.

     Get a copy of a FREE credit report by going to annualcreditreport.com

Look at programs

     Florida is lucky to have the State Housing Initiative Program (SHIP) which assists working people with a downpayment.  In our area, the Suwannee River Economic Development Council administers the funding. To download the application and review guidelines, go to https://srecinc.org/programs/ship/

     UF/IFAS Extension, an Equal Opportunity Institution, provides classes which satisfy the education requirement, as it is an eight hour HUD-certified class. Our next virtual nighttime class is August 11 and 18, 2026 from 5-9pm. You must attend both sessions. Cost is $10.

     So, yes, you will be able to purchase a home.  It may take a little longer than what you first considered and it might not be the palace you had conjured in your mind. However, by following the tips above, you will have a good start on your journey!