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Real Estate

1BR 1BA Petworth Condo @ $239k vs. Similarly Sized Rentals in the Neighborhood


Last week we talked about FHA loan payments being less than $1,300/month for a typical FHA-approved home buyer to buy this new 1BR 1BA condominium for sale at The Jefferson in Petworth for $239,750. With interest rates below 3.75%, the FHA approved buyer on a 30 year mortgage will pay a loan payment of around $1,250/month plus taxes and insurance.

 

The 1BR 1BA at The Jefferson is at 5401 – 5407 9th Street NW, north of the Georgia Avenue /  Petworth Metro. It’s 621 sq. ft. of space with a wide living room with designer tile flooring, a large kitchen with stone and stainless steel finishes and separate dining. The bedroom is large and the bathroom is modern and nicely appointed.

“This unit is inexpensive and great for the 1st time buyer who wants to be in Petworth. There’s a ton of new retail opening up nearby, new night spots and other major upgrades happening in the area around The Jefferson,” said Gerard DiRuggierio, Principal Broker of UrbanLand Company. “It’s a good illustration of our ongoing advice regarding ‘following developer activity’ as you choose where to make your first purchase.”

For a somewhat apples to apples comparison on a comparably sized rental, you look to The Woodner at 3636 16th Street, NW in Petworth. They list a 1BR 1BA 625 sq. ft. apartment at $1,599/month rent. If you want to rent right at the Metro, for a 1BR 1BA at 660 – 715 square feet you’re paying $1805 – $1950+ per month at The Griffin Apartments or The Swift at Petworth Metro.

$1,250/month for an FHA loan payment to own a new 1BR 1BA with nice interior appointments and a comparable amount of space to a $1,600 – $1,950/month rental? We’ll take it.

“FHA and similar loans do require a 3% to 3.5% down payment. The loan payments quoted above are a simulation based on a typical buyer with typical good credit and what they will pay per month for that loan,” continued DiRuggiero. “For those with down payment issues, you look to DC Open Doors and its popular $0 Down program. You can get that down payment taken care of by the city if you make under $123,395 per year, have decent credit and plan to live in the home at least 5 years!”

Your $0 Down loans through DC Open Doors do carry a slightly higher monthly payment than a comparable 3% or 3.5% Down FHA based loan. There’s a cost to the $0 Down and it is higher administrative fees and other loan fees inside the mortgage.

Morale of the story? Whether you have a Down Payment put aside now or not, you have options available to you if you want to buy a condo or home right now. UrbanLand Company Home Buyer Workshops outline options just like this, and offer real, tangible strategic points that are key you understand as a first time home buyer in DC / MD / VA.

Workshops this week are on Saturday morning at 10am. The Workshops are held at 913 Florida Avenue, NW. This week’s topic includes Buying New Construction – Any Price Range and will also discuss $0 Down and other financing options.

RSVP via email at Info@UrbanLandCompany.com or use Facebook events. If you would like to potentially go touring after the session with one of our Workshop agents, please let us know in advance.

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