HometownGeorgetown.com

For years, I rented apartments, putting money every month into someone else’s pocket. If I had known then what I know now, I would have at least researched the possibility of buying my own place. Back when I was single, I might have been able to afford a home in the range of $110,000; actually, I could have done it easily if I had taken in a roommate.

Is it possible these days to find a livable home for that magic number of $110,000? Sure is. In fact, as of today, there are 15 homes in MLS areas GTE and GTW priced between $100,000 and $120,000. That may not sound like a lot, but all you need is one. Five of the homes have two bedrooms (including two townhomes), and the other ten homes have three bedrooms. At least a couple of the homes are fixer-uppers. If you’re handy, this could give you a great opportunity to increase the home’s value while you live there. But if you want something that’s move-in ready, four of the three-bedroom homes in this price range are condos that were built in 2007. If having a big yard is your dream, you’ve got options there, too. In the past six months, 20 homes have sold in GTE and GTW between $100,000 and $120,000. These homes ranged from 1029 square feet up to 1916 square feet, and the largest lot size sold during that time period and at that price was .54 acres. Right now, one of the homes in this price range has almost 2 acres of land.
I asked my good friend and lender extraordinaire Randall Goltzman of Mortgage Pros, Inc. to come up with an estimate of what the monthly payment would be on a home valued at $110,000, including taxes and insurance. He provided the following chart:
Loan-to-value 100% 97% 95% 90% 80% Monthly Payment $988 $942 $938 $905 $838

With a 95% loan-to-value ratio, you would put down 5% when you bought the house. That’s $5,500 on a $110,000 house. You might need to save some money in order to get that down payment. It’s possible that you could get a 100% loan, but I think that spending some time saving for that down payment is a great way to build anticipation for the day you can finally buy.

So for less than $1,000 per month, you could start building equity in your own home, rather than lining someone else’s pockets. You have even more options if you widen your search to include other cities. (Even though I think Georgetown is the best!) I recently helped a client find an adorable townhome in Round Rock that she bought for less than $110,000. I can help you, too. Give me a call at 512-876-6544.