Attorney Edward Myers recently bought a home in Tempe - it was his first.
"I only had to come up with $1,100 in closing costs," said Myers, who works with the Arizona Technology Access Program, which helps people with disabilities. He is one of thousands of people who, with the help of low interest rates and an abundant supply of mortgage programs, were able to buy their first home.
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New buyers helped push the housing sales in the Valley to a record last year. Housing analysts believe first-time buyers were responsible for one-fourth of the 111,000 new and used houses bought from Pinal County to New River last year.
Myers had been renting in south Scottsdale for the past five years and wanted to buy, but school loans and hefty medical bills kept his savings account too small for a down payment.
Saving for a down payment is the biggest hurdle for first-time buyers, according to the National Association of Realtors.
Myers got help from a loan program from Bank One and national mortgage backer Fannie Mae. The program required little to no down payment, had flexible credit qualifications and eliminated mortgage insurance.
Some buyers need the help as housing costs continue to rise. Nearly one-third of all Valley neighborhoods have seen home prices jump more than 40 percent since 1997, according to The Republic's annual housing market survey.
Dozens of private and public partnerships help first-time buyers compensate for the rising costs. Myers' real estate agent told him about Bank One's program.
Most of the big lenders, including Wells Fargo and Bank of America have programs to help new buyers.
Housing analysts advise people trying to get into their first home to work with real estate agents, who know about the available help and can contact groups that work to promote home ownership. Those organizations include, Neighborhood Housing Services, Chicanos Por La Causa, Habitat for Humanity, the Arizona Housing Commission and Phoenix Local Initiatives Support Corporation.
"We have to be innovative in helping people afford their first homes, particularly as prices continue to rise," said Rita Carrillo of Neighborhood Housing. "Not everyone can come up with a 20 percent down payment, but that doesn't mean they don't deserve to own their own home."
The Arizona Republic
Mar. 2, 2003