If you are serious about becoming a home owner but have some challenges to overcome (credit, lack of savings, bankruptcy, etc.) our Rent to Home program can help.
Here are the factors to consider when comparing buying to renting a home:
- Homeownership is not for everyone.
- Homeownership requires you to have a stable or growing income.
- Financial benefits of homeownership are long term. You should have a budget and savings plan in place before buying a home. Owning a home is a big responsibility.
- Your credit score will impact how much you can borrow and at what terms. If you have substantial credit card debt, you may want to seek the help of a credit counseling agency and debt management program and pay your debt down, before applying for mortgage.
Advantages and Disadvantages of Renting a Home
Depending on your financial situation and preferred style of living, there are many advantages to renting:
- Renting a home can be cheaper than buying a home. Your payments tend to be lower than a comparable house payment. Also, your rent may cover utility costs (additional savings).
- You have more flexibility when you rent. Most leases are for 12 months. So, if your job requires you to move frequently, renting can be a desirable alternative to owning.
- Your landlord, not you, is responsible for performing nearly all maintenance and repair work on the property.
Financial Disadvantages of Renting
- There is no tax break for renting. You won’t be able to claim any deduction for mortgage interest and property taxes when you file your tax returns.
- Your housing costs aren’t fixed like they are with a fixed-rate mortgage. Your rent will most likely increase from year to year.