Renting vs Owning

Personalization

As long as you remain within the guidelines of your county / neighborhood homeowner’s association (HOA), you may be free to alter your home’s appearance in any way you like. You may also own domestic and exotic pets without paying additional deposits. While insignificant to some, these benefits are often of high priority for pet owners and those who enjoy landscaping, interior design, etc.

Stability

Once you own a home, the only way you may be forced to move is if the bank forecloses on your property due to a default in your mortgage payments. Remaining in one neighborhood for several years will allow you and your family to establish lasting friendships and provide your children with the benefit of educational continuity.

Tax Benefits

The US government has created tax incentives that make it possible for many homeowners to exceed the standard yearly deduction. The following three components of your home mortgage may be tax deductible:

Home Mortgage Interest
Property Taxes
Origination / Discount Points

*Disclosure – Check with your CPA or Tax Attorney to verify your own unique filing scenario*

Appreciation of Property

Historically, real estate has had a long-term, stable growth in value. In fact, median single-family existing-home sale prices have increased on average 5.2 percent each year from 1972 through 2014, according to the National Association of REALTORS®.

Savings

Monthly mortgage payments will help you work toward principal repayment of your loan. In addition, sellers generally take up to $250,000 ($500,000 for married couple) in gains without owing any federal income tax.

*Disclosure – Check with your CPA or Tax Attorney to verify your own unique filing scenario*

Increased Net Worth

Few factors have a greater impact on net worth than homeownership. In a study comparing renters and homeowners, the Federal Reserve Board of Consumer Finance found that the average net worth of renters was just $4,000 compared to a homeowner net worth of $184,400.

While tax advantages and earned equity potential are often cited as top reasons to own real estate by industry professionals, it’s important to remember that markets go through cycles. Nonetheless, owning real estate that appreciates more than the rate of inflation may help contribute to your overall investment portfolio if your maintenance and mortgage costs remain low.

Loan Programs

CONVENTIONAL 95/97	VA 100	FHA 96.5	USDA 100
A popular option for borrowers with strong credit history.	A phenomenal option for veterans and those currently active in the US military.	Our most popular option for first time buyers or those with less than perfect credit. 3.5% down payment required (option to use community down payment assistance or gifted funds from family, friends or employers).	Available in select counties to borrowers meeting USDA income requirements. *Maximum household income/asset limits apply
Down to a 620 credit score	Down to a 580 credit score	Down to a 580 credit score	Down to a 581 credit score
3% or 5% down payment	$0 down payment	3.5% down payment	$0 down payment
Avoid government funding fees (FHA, VA, USDA)	Low Fee	Low Fee	Low Fee
20 –30 day UW process	Fast 15-30 day UW process	Fast 15 - 30 day UW process	Fast 15 - 30 day UW process
The closing costs can be paid by seller up to 3%	Costs can be paid by seller or financed up to 4%	Seller can pay costs up to (6%)	Seller can pay costs up to 6%