Four Excellent Reasons to Buy a Home So You Can Get out of the “Renting Rut”
Renting a home is a good option for some, but buying a home just might be the best thing for you.
When you rent a home, you send money to someone else every month in exchange for knowing that you can call on your landlord when the roof leaks, an appliance stops working or your bathroom faucet breaks.
But there are some big advantages to buying a house that will help you get out of your renting rut and focus more on your future.
You Can Build Equity
Did you know that when you rent a home, you help someone else build equity?
Any changes that you make with your landlord’s approval put money back in his or her pocket. Keeping the yard clean and taking care of routine maintenance builds equity in that property.
When you buy a home of your own, you have the chance to build equity of your own, which you can use to obtain a loan later.
Save On Your Taxes
When you rent a house, you cannot deduct the money you spend on your taxes. Though some states will let you make a small deduction based on the total amount you spend in rent each month, you cannot make any deductions on your federal taxes. When you buy a home, you can save with a few different types of deductions.
The federal government lets you take a deduction on the interest that you pay on your home mortgage loan. If you purchase your home, you can also make a deduction in regards to your property taxes. You can also deduct money that you spend on some renovations and energy saving appliances.
Put Your Personal Touch On Things
As long as you continue renting, you live in a home that belongs to someone else. Your landlord has final say over what you do and do not do. This often means that you cannot make repairs or significant changes without seeking approval first.
Owning a home lets you put your personal touch on things. You can paint the walls any colors you want, rip out the carpet to add hardwood flooring or even make significant changes outside to turn your new home into your dream home.
Loans With Low or No Down Payment
Did you know that the Federal Housing Administration, or FHA insures loans with small down payments and private mortgage insurers also have relaxed their down payment requirements making it possible to get a mortgage today with no money down. With the right mortgage representative, homebuyers can find these home loans and make the home buying process smoother.
Following are just a few options for borrowers seeking low down payment and zero down mortgages:
- VA Loans- The VA guarantees purchase mortgages with no required down payment for qualified veterans. Private lenders originate VA loans which the VA guarantees.
- Navy Federal- Navy Federal Credit Union offers 100 percent financing to qualified members who buy primary homes.
- USDA- The U.S. Department of Agriculture mortgage guarantee program is a no down payment program that is so popular that it has been known to run out of money before the end of the fiscal year. Some borrowers are surprised to find that Rural Development loans aren’t confined to farmland.
- Mortgage Insurance- Qualified borrowers can make down payments as low as 3 percent with private mortgage insurance or PMI.
- FHA- FHA is the low down payment option that’s available to people with imperfect credit histories. With a minimal down payment of 3.5 percent this makes a great low down payment option for homebuyers.
To get the complete scoop on what programs you might qualify for and to help aid you in the home buying process, feel free to contact me. I’ll help get you the assistance you need to get out of the rental rut you’re currently in.
For more information about first time home buyers. Feel free to contact me. crodina@cararealtors.com or 732-701-7970
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