The plight of the so-called middle class in the USA becomes clear when you read stories about 21-year Kylie Jenner buying another mansion in the Hollywood Hills or about a new Habitat for Humanity (HFH) house for a low-income family. Ms. Jenner has the wealth to enable her to make these purchases, and we will assume that she gets good advice from a financial advisor. The family that is the HFH recipient must pay a $500 down payment and perform 400 hours of sweat equity (physical work to build the house) and make monthly mortgage payments limited to 30% of their income ($750 / month for a $30,000 annual income).
Neither of these options are available to “John and Mary,” our fictional family with two kids and a combined income of $80,000 living in South Carolina. After Uncle Sam takes his share of 12% (assuming that John and Mary have deductions to adjust their income to less than $77,400) the state will take another 7% leaving the couple with $61,000. This may seem like a lot but keep reading.
John and Mary currently rent a house and will pay about $1500 per month or more for a beautiful three-bedroom home in a decent neighborhood. John’s company may have stopped offering health insurance as a benefit, so they will be required by law to pay $800 a month or more to get that needed health coverage through Obamacare. Add a modest car payment with insurance, child care as John and Mary both work, internet, and phone costs, gas for the car, school costs, groceries, clothing, and so on and it becomes evident that there will be little left for anything else.
The Plight of John and Mary
John and Mary want to buy a house for all the usual reasons, but they can’t raise the 3.5% down payment for an FHA loan much less the 20% down payment for a conventional loan. Their options are to start buying lottery tickets or hope that rich Aunt Martha “kicks the bucket” and leave them a big inheritance.
Fortunately for us John and Mary are fictional, so we can go back a few years and change history a bit to show that either John or Mary had served in the military and thus is eligible for an SC Zero down VA loan. The bleak picture becomes bright as they are now able to get a loan up to $453,100 with zero down payment.
And, because they live in South Carolina, they can use AmeriSouth Mortgage Company to help them obtain that loan. AmeriSouth has been helping folks just like John and Mary for nearly 30 years to get them into an equity building house instead of paying rent every month.
AmeriSouth was created in 1990 and from the beginning decided to operate as a small mortgage banker to make sure every potential homeowner would get the best financing option whether it be one of the Kardashians or a family like John and Mary and their kids. AmeriSouth serves the Carolinas, Georgia, and Tennessee so if you are looking for an FHA or a conventional SC Zero Down VA loan, give AmeriSouth a call at 704-845-9400 or toll-free at 800-849-2378 after you dry out from Hurricane Florence.