FHA Loans and FHA Mortgages

Are you throwing money out the window by renting? More than likely, yes. But this can be a complicated decision based on several different factors. Sure, you can try the many rent vs buy calculators online, but I have found so many not to be the same as the first one.

When should you not buy a home?

  –  If your rent is very low. (usually 2/3 or less of your monthly payment)

  –  You intend to move in a few years. (unless you get into the house with no money out of pocket)

Is this statement, “throwing your money away on rent”, a myth? It certainly can be and here is why. When you buy a home, you still have expenses unlike renting.

  –  maintenance

  –  original closing costs when buying the home

  –  monthly property taxes

  –  yearly homeowners insurance

  –  sometimes mortgage insurance [but there are many types of PMI loans (Private Mortgage Insurance)]    If it’s a FHA loan, there is monthly mortgage insurance, but it’s cheaper than conventional MI.

Okay, are you confused, since I have mentioned some negative reasons why not to buy a house. It’s because the positive reasons will outweigh the negative reasons of buying a home. Key word being usually. Your home can become your own personal bank.

Positive reasons for buying a home 

  –  You can write off the interest yearly

  –  You can deduct the points that you paid when purchasing, the 1st year

  –  Your home will appreciate, becoming more valuable over time ******

  –  Pride :  The home is yours. You can basically do what you want, within reason.

  –  Once your home is paid off, you just have yearly taxes and homeowners

Overall, this is the best time to buy.  Home values have dropped in many places and they are now leveling out, stablizing.  Also, rates are still low…. anything from 6% to 6.750%.

In Part 2 : I will talk about comparing renting vs buying in dollar figures. And I will also introduce a few different types of programs to help you in buying your dream home.

- FHA Loans  - Conventional Loans - VA Loans -

Experience & Knowledge at its BEST !!!