Buying a home is the largest purchase you will ever make. Homeownership has great benefits.
Benefits of Home Ownership
Homeownership has many advantages - both financial and personal. Buying a home is an important decision. Look at the benefits and the differences between homeownership and renting to better understand if owning a home is right for you.
What are the benefits of homeownership?
Tax savings.
You may earn significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax and many states' income tax if you itemize your deductions.
A more stable monthly housing expense.
Your monthly housing loan or mortgage expense can remain the same for the life of your mortgage, depending on the type of loan you choose.
Equity.
You may build equity in your home over the life of your loan, which allows you to plan for future goals like your child's education or your retirement.
Pride of Home Ownership. When renting you almost never want to add home improvements. Owning allows you the pride to build, add or remodel anytime you want
Low Monthly Investment. With FHA, Government backed Mortgages, you can have a low fixed payment for your home.
Low Initial Investment. With FHA, Government backed Mortgages, you can put a very low down payment.
Homeowners have a financial investment and build equity in their home.
How Much Can You Afford?
Mortgage lenders typically use the housing expense and debt-to-income ratios to more accurately determine how much you can afford to spend on your mortgage.
Myth: You need great credit to become a homeowner. Fact: You may still be able to buy a home with less-than-perfect credit.
Myth: You need to put 20% down to buy a home. Fact: There are many types of mortgage products and programs that allow low and no down payments.
Myth: You can't buy a home in the U.S. if you're not a citizen. Fact: If you're a legal resident, you can purchase a home in the U.S.
Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage. Fact: Lenders can approve you for a mortgage even if you don't have a bank account or credit cards.
Myth: Lenders share your personal financial information with other companies. Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you.
Myth: You can't get a mortgage if you've changed jobs several times in the last few years. Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you've had a stable income.
