We would like to help you simplify the decision making process by sharing the benefits of purchasing a new home vs. renting. A fair percentage of new home buyers aren't aware that a new home can be purchased with a 3.5% down FHA loan that includes ALL closing costs rolled into the mortgage. With this FHA loan, it's possible to ask the seller to contribute up to 6% of the sale price.
Another consideration is to explore purchasing a multifamily home using the same type of FHA mortgage to help facilitate a pay down on the mortgage and increase your equity. This type of loan is available on one to four unit properties. FHA also offers a loan with the option of purchasing a home, fixing it up to your specifications, and including all of these costs into one loan.
Homeowners have been helped by FHA since 1934. The way it works is that The Federal Housing Administration (FHA) as is part of HUD helps homeowners by insuring the loan. This means that you get a much better rate. The other advantage your lender is able to offer you easy credit requirements, low closing costs and a low down payment.
The Value of Home Equity
Owning a home or condo helps to build equity that adds to your net worth over time as you pay down the mortgage. For most home owners, a home is usually their largest single investment. Home equity can be of great benefit if you ever decide to sell, or use it as a possible source of funds through a reverse mortgage.
These benefits don't exist in a rental, paying $2,560 in rent for 20 years nets out at $614,400 in rent receipts. That's just a rough figure for New York since rents increase with every two year renewal.
All of this may be a bit daunting, so please contact us. We're here to help clarify your questions and concerns.