The American dream of home-ownership is alive and well for the majority of young people, but it might have been unrealistic in today’s market until now. In a Trulia survey, 93% of millennial renters said they hope to buy a home. Unfortunately, that wasn’t feasible due to an all time high for rental rates. Most renters found it difficult to save for a down-payment and closing costs as a result. Good News: To add rise to our economy, and promote home-ownership, FHA now offers the “Home in 5 Advantage” program. This program allows people to purchase a home without having to pay a down payment!
YES! ZERO DOWN!
Home in 5 Advantage Program
5% of the loan amount is given to a borrower through a government grant to cover their down payment and a portion of their closing costs. Veterans receive 6% and, since they are already eligible for 100% financing, the 6% covers all of their closing costs and essentially they get into the home for nothing. The best part is that it’s a grant, so it doesn’t need to be paid back. For more information on this program and similar programs, see below to contact a Home in 5 Advantage qualified lender.
A few benefits to owning a home….
- Buying is cheaper than renting
Some people feel it’s more expensive to buy a home because there are down payments and closing costs. However, since the rental prices increase every year, buying a home is cheaper in the long run. Renters are stuck paying a landlord each month, while paying off their landlords investment. Homeowners, on the other hand, make payments and pay off their own investments. Now….that sounds more logical, wouldn’t you agree?
- Build equity
Renting doesn’t build your net worth, but buying can. You can build home equity as your home appreciates in value and your mortgage balance decreases. Equity is the difference between your home’s worth and what you owe the bank. Therefore, think of your home as a long-term savings account. If you decide to pay off your home down the road, you can put the proceeds in the bank for retirement or use the cash for other purposes.
- Income tax benefits of owning
Homeowners can write off mortgage interest and private mortgage insurance. These deductions reduce your taxable income and lower your tax liability. It can reduce how much you owe in federal and state taxes, or increase your tax refund.
- Gives your family—and finances—stability
Buying a home offers a sense of stability. You’ll enjoy predictable monthly payments, plus owning gives your family a measure of security. The landlord can increase the rent or decide to sell the house, forcing you and your family to find a new place. Homeowners don’t deal with these headaches. It’s your home, and you can live in the property for as long as you can afford the mortgage.
If you or someone you know is considering buying or selling a home, contact me!
I make it my duty to find you not only a home to meet your needs, but the perfect combination of amenities, location and design to best fit who you are and exactly how you aspire to live. My fearless representation, aggressive negotiation, and plan of execution allows me to create opportunities that many agents would not consider possible. My job is to not only be your agent, but to be your advocate, and guide you through even the toughest negotiations by exceeding your expectations and protecting and promoting your best interests.