The American Dream Is Still Being A Homeowner Contact Us Today To Get Started

Dated: 01/10/2020

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Do you know the Benefits Of Being A Homeowner Versus Renter and know the Mortgage Process?

  • A home purchase is normally one’s largest and single biggest investment

  • There are many benefits being a homeowner versus renter

  • Many renters do not realize how simple it is to be a homeowner

  • Many renters are under the impression that they need 20% down payment and great credit to qualify for a home mortgage

  • This is not the case

  • USA Mortgage are experts with first time home buyers and realize the dream of home ownership can become a reality with the right help and knowledge given to the buyer.

I help renters qualify to become first time home buyers.  Did you know that I have renters that were “over bid” “denied” “cancelled” etc on a rental but were able to qualify for a home? 

It is expensive to get into a rental.  If the rent if 1500.00, you will need one month’s rent and one month’s deposit to even be considered.  ( Did you know I have several programs that you can get into a house for this)!

  • Over 75% of our borrowers are home buyers who could not qualify at other lenders because of the other lenders overlays

  • Lender Overlays are mortgage guidelines that are above and beyond those of FHA, VA, USDA, Fannie Mae, and Freddie Mac Mortgage Guidelines

We are direct lenders with no overlays on government and conventional loans.

Weighing The Cons And Benefits Of Being A Homeowner Versus Renter

Let’s consider the cons and benefits of being a homeowner versus being a renter.

  • Many renters feel that home ownership requires the following:

    • Great credit

    • Great income

    • A lot of money to use for a down payment

    • Reserves

  • That is not normally the case

  • Home Buyers can qualify for FHA Loans with outstanding collections and charge off accounts with a 580 credit score with USA Mortgage, but we can do loans with scores as low as 500

  • There are great first time home buyer loan programs where as long as the buyer can prove that they can afford the monthly housing payment, they should be able to qualify for a home loan

  • FHA loan programs require a minimum of 3.5% down payment

  • However, home buyers who do not have the down payment, the down payment can be gifted by a family member

  • Many first time home buyers are nervous in becoming first time homeowners

  • They are afraid of committing to such a long term commitment and responsibility

  • There are many benefits of being a homeowner versus renter

  • We have several “0” down payment programs where you may qualify for one of them.

  • Several Benefits Of Being A Homeowner Versus Renter

  • One of the greatest benefits of being a homeowner is that homeowners have full control of the property since they are the owner of the property

  • Homeowners do not have to abide by the rules of the landlord where they cannot paint the home, have pets, have satellite dish installed, install carpeting, attach fixtures, or remodel.

  • Benefits Of Being A Homeowner Versus Renter With Building Equity

  • Building Equity :

  • Another great benefits of being a homeowner versus a renter is that when they make mortgage payments every month, part of the mortgage payments is the interest expense and part is principal

  • Homeowners can deduct mortgage interest from their income tax

  • The principal pay down will reduce the principal of the loan amount

  • Also, real estate is one of the safest investments around

  • Homeowners will also reap the benefits of being a homeowner versus renter because more than likely, the home will appreciate in value

  • The real estate and credit collapse of 2008 has corrected the real estate market

  • Renters will not reap the benefits of being a homeowner versus renter but will be able to save money from the mortgage interest deductions and/or potential appreciation of their home

  • As a renter, they cannot deduct any rental expense and renters are helping their landlords pay down their mortgage and build wealth for landlords and not themselves

  • Financial And Tax Benefits Of Being A Homeowner Versus Renter 

Writing off mortgage interest deductions:

  • Other benefits of being a homeowner versus a renter is that homeowners get to write off the mortgage interest every year whereas as a renter they do not have those benefits

  • Mortgage interest expense is fully tax deductible

  • This is one of the greatest benefits of being a homeowner versus renter

  • Mortgage interest is the biggest portion of monthly mortgage payment during the first half of the term of the loan

Writing off property taxes:

  • The Internal Revenue Service allows property taxes paid on owner occupied homes and second/vacation homes to be fully deductible from income tax

  • Again, renters do not have that privilege 

  • Exempt from paying capital gain taxes on owner occupied residence:

  • Other benefits of being a homeowner is that as long as homeowners have lived on their property for a few years, a homeowner can exclude paying capital gains

  • Homeowners need to check with their accountant on the amount they can exclude

  • But from my understanding, a homeowner can exclude up to $250,000 for an individual or up to $500,000 for a couple who are married from paying capital gains

  • This is different than a 1031 tax exchange where property owners do not have to purchase a like or larger property with the proceeds

  • Primary homeowners are totally tax exempt from paying capital gains taxes from the sale of personal residence.

              Vivienne Cunningham,Realtor

               The Caribbean Team

               Preferred Real Estate Brokers


  • Credit USA Mortgage

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