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Homeownership Housing Help

Curated questions and answers about common Homeownership concerns.

How can homeownership benefit me?

  • Most of the time, a mortgage payment is lower than a rent payment.
  • The homeowner does not have to answer to a landlord or apartment manager.
  • If the mortgage is a fixed rate mortgage the monthly payments will never go up.
  • The homeowner will have more privacy than a renter and the homeowner can decorate their home in anyway they want. A homeowner can have pets without paying a pet fee and can decide who lives in the home.
  • A homeowner has an investment that can be passed on to their children and if the homeowner buys a house in the right area, the worth of the home can quickly grow.
  • The homeowner will have a stable place to live that belongs to them (and the bank until it is paid off).

With these benefits come added responsibilities. Check if you're ready to buy a home by reading the Affordable Homeownership Guide.


Link to this FAQ: https://affordablehousingonline.com/housing-help/how-can-homeownership-benefit

How can homeownership benefit me?

  • Most of the time, a mortgage payment is lower than a rent payment.
  • The homeowner does not have to answer to a landlord or apartment manager.
  • If the mortgage is a fixed rate mortgage the monthly payments will never go up.
  • The homeowner will have more privacy than a renter and the homeowner can decorate their home in anyway they want.
  • A homeowner can have pets without paying a pet fee and can decide who lives in the home.
  • A homeowner has an investment that can be passed on to their children and if the homeowner buys a house in the right area, the worth of the home can quickly grow.
  • The homeowner will have a stable place to live that belongs to them (and the bank until it is paid off).

With these benefits come added responsibilities. Read the Affordable Homeownership Guide


Link to this FAQ: https://affordablehousingonline.com/housing-help/homeownership-benefit

How to buy a home with bad credit?

The best first step is to contact a HUD approved Housing Counselor. The Housing Counselor could help you work on raising your credit score and guide you through the process of getting a mortgage and buying a home.

Most federally insured or direct mortgages through the FHA or USDA require a credit score of 580 or could go even lower. Most conventional mortgages require credit scores in the mid-to-high 600 range.

However, there are some types of mortgages that are funded or insured through federal, state and local governments, which allow for a buyer to purchase a home, even with a credit score lower than conventional mortgage standards.

How to Contact a HUD approved Housing Counselor

Keep in mind there are other factors involved in obtaining a mortgage, such as:

  • Having a source of reliable income.
  • Price of the home.
  • Total sum of the buyer’s other debts.


Link to this FAQ: https://affordablehousingonline.com/housing-help/how-to-buy-home-with-bad-credit

How does homeonwership affect your credit score?

If you purchase a home, you are taking on new debt and that will make your credit score go down for a short time. After you get some mortgage payments in and on time, it will most likely make your credit score go up.


Link to this FAQ: https://affordablehousingonline.com/housing-help/homeownership-affect-credit

Can you buy a home without a down payment?

Yes. There are FHA, VA and USDA insured or direct mortgages that do not require a down payment or do require a down payment but at a lower amount.

Also, there are down payment assistance programs (usually for low-income buyers and first-time homebuyers) that don't have to be paid back or are paid back only when the buyer moves out or sells the home. A HUD approved Housing Counselor can help find down payment assistance programs that are right for you. Find your local Housing Counseling Agencies here: HUD approved Housing Counselors by State


Link to this FAQ: https://affordablehousingonline.com/housing-help/buy-without-down-payment

When is best to buy home insurance?

A home owner should purchase home insurance before closing on the purchase of the home. Documentation of the purchase of adequate insurance will need to be presented at the time of closing.

The key is to get the appropriate amount of coverage for your home. Many first time Homebuyers will be surprised at what home insurance doesn't cover. For instance, water damage from a sewer break usually is not included. Damage from a flood won't be included unless you purchase a seperate flood policy. Standard home policies will include basic dwelling coverage, other structure coverage, personal liability, personal property, loss of use coverage and medical coverage - all insurance you will need as a homeowner.


Link to this FAQ: https://affordablehousingonline.com/housing-help/when-buy-home-insurance

Why should I buy home insurance?

To protect yourself from the loss of your home or damage of the property. An Insurance Policy won't cover all the costs of damages or lawsuits concerning injuries sustained on your property, but will pay out a hefty chunk of costs which could bankrupt you or cause you to lose the use of your home.


Link to this FAQ: https://affordablehousingonline.com/housing-help/why-buy-home-insurance

What homeownership expenses are tax deductible?

Homeowners may deduct the interest paid on the mortgage loan, property taxes and medically necessary home renovations (like installation of wheelchair ramps or grab bars). Also, if you paid discount “points” on the loan to reduce the interest rate at the time you purchased, those payments can be deducted too.


Link to this FAQ: https://affordablehousingonline.com/housing-help/homeownership-expenses-tax-deductible

Frequently Asked Homeownership Questions

Detailed Homeownership Questions from Affordable Housing Online users.

Is it better to buy a home or rent?
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What does homeownership mean?
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When is national homeownership month?
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Is homeownership better than renting?
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Can I buy a home without realtor?
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Can I buy a home for $1?
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With a mortgage, who owns the house?
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How does mortgage interest work?
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Can mortgage rates go lower?
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Are you eligible for Section 8 if you own a home or other real estate?