Buying a home is a major milestone. It offers immediate and exciting benefits. But one of its greatest long-term advantages is wealth building. Wealth building, or the process of generating continuous income from various sources, can pave the way to financial freedom and transformative opportunities. Throughout history, owning real estate has been key to passing wealth from one generation to the next. Unfortunately, many people have been excluded from homeownership because of discriminatory laws and practices, financial hardships, or a lack of accessibility, meaning they were not allowed the opportunity to pass on such wealth.
It's crucial to make homeownership more accessible to everyone to improve social equity.
Check out these common myths we hear from prospective homebuyers that prevent them from making a plan to purchase a home.
1. Myth: I need a 20% down payment to buy a home.
Fact: Government backed products, such as FHA loans, can have a down payment as low as 3.5%. Many lenders also offer conventional products that require 10% or less for a down payment.
2. Myth: I need amazing credit to buy a home.
Fact: FHA provides flexible underwriting requirements for borrowers with less than perfect credit. Although higher credit scores typically lead to better interest rates, don’t worry if your score is lower–there are programs & solutions available. With a housing counselor, you can explore financing options, learn strategies to improve or maintain your credit score, and map out the next steps toward owning your dream home.
3. Myth: I can’t get a mortgage with student debt.
Fact: A student loan will be considered part of your overall financial picture, just like a car loan or other financial obligations. In fact, a student loan may give you “diversity of credit”, a factor lenders look for that shows you can manage different types of debt.
If you’re interested in buying a home, you should talk to a HUD certified housing counselor – even if you’re not ready to buy right now. Why? Because housing counselors will get you ready, no matter where you’re starting. HUD certified housing counselors offer pre-purchase counseling services to work with future homebuyers to:
Figure out what you can afford
Create a savings plan
Make a plan to improve credit
Find programs and grants to lower your homebuyer costs
Discover the right mortgage loan for you
Pre-purchase homeownership counseling covers all aspects of the homebuying process. It provides resources to help you make informed decisions from unlocking down payment assistance programs to post-purchase home repairs or updates. Regardless of your income level or stage in homeownership, everyone can use the services of a HUD certified housing counselor.
Housing counselors provide homebuying and financial advice based on your needs and goals. Open Communities (OC) has three HUD certified housing counselors, including bilingual Spanish/English speaking staff. If you're thinking about buying a home, RSVP for our free 2-afternoon pre-purchase workshop on October 23 & 24 to learn all about the homebuying and homeownership process.
Whether you own a home, are ready to buy a home, or are just starting to save, one of our HUD certified counselors can help you access resources and create a step-by-step plan. Learn more by contacting us at intake@open-communities.org or 847-501-5760 to set up your free appointment today or check out our events calendar for upcoming workshops.
コメント