Your first home. It really is possible.
Most people realize home ownership is one of the primary ways to build wealth, but fewer people realize how possible it is to achieve.
Quite often, payments on a mortgage can be very close to what a person pays in rent. The problem is frequently the down payment. The most common concern of the potential homebuyer is “How can I pull together $10,000 or $15,000 for the down payment?” It’s a valid question, but should be rephrased to simply ask, “How can I get myself into a home?”
From developers and banks, to loan companies and mortgage brokers, everyone has a deal to get you into a home. Some of these may be worthwhile, but others are merely scams to draw you into a high-rate loan with an enticing 100% financing gimmick or something similar.
For an example on getting a home, let’s take a look at how an LGFCU member can work with the Credit Union to make their dream of home ownership a reality.
Since we’re looking to get past the down payment dilemma, let’s assume our member has no down payment and has an income of $35,000. For the example, we’ll figure they are paying $825 a month for a two- or three-bedroom rental property and are looking for a three-bedroom townhouse or single family home costing no more than $110,000. The member cannot afford too much more in a monthly payment and should really keep the payment around 30 percent of their gross income. Let’s see if this can happen.
