The Rent Payers Blues: Getting Your Hands On A House Of Your Own.
(ThyBlackMan.com) In today’s market, buying a house is an absurd idea for a lot of families. The amount required for a deposit alone can be crippling. This makes it almost impossible for a lot of families to buy their home early, or even at all. Leaving them with the prospect of renting forever. This is a tragedy and one that can be avoided. You just have to play your cards right.
- FHA Loan
In 1934, the Federal Housing Administration was set up to make it easier for new homeowners to get a loan for their home. And, today, they’re still working. With an FHA loan, you can buy a reasonably sized home, without the need for a huge deposit. In fact, on a lot of loans, your deposit needs to be at least 10%. This makes it hard for a lot of people to save up. But, with an FHA loan, your down payment could be as little as 3.5%, which is a dramatic difference. You can compare FHA mortgages online, to see exactly what you’ll get.
These types of loan will typically have lower interest rates than others, as well. This will save you money in the long run when paying back the loan. You can trust that they are underwritten well, with the best intentions in mind. Because this service is here to help people, you can be confident that your home is secure with them. The money in this scheme isn’t owned by the government. It’s lent by someone else, and the government insures it. This means that, even if you can’t pay it back, the loan won’t default.
- Government Operating Housing
In a lot of places, the government has set up housing for people who simply can’t afford their own home. For one of these houses, you must be a family. You will struggle to find one for just yourself. You will have to sign up and place bids on houses. If you need a home the most, you’ll be awarded it. Once in the home, you will pay rent. But, unlike normal rent, this money will go towards the ownership of the house. Once, you paid off enough; you’ll be given the option to buy the home from the government. These schemes are very competitive, and will only work if you are very desperate.
- Welfare and Benefits
In most places, the government can support your housing needs. You may already receive money for rent, and you can do the same when it comes to paying for a mortgage. For this, you will probably need children. But, if you do have them, the government should support you in buying your home. This may be through a partial ownership scheme, where the government pays for the half the house, and you the rest. Or, it may be in money towards your mortgage repayments. Either are a great way to save some money.
Hopefully, this will inspire you to start looking towards your new home, and a life without rent. Of course, buying a house is a big decision. So, it’s worth talking to a professional to help you before you take the plunge.
Staff Writer; Donald Wall