Home ownership is considered an important part of the American dream and not without good reasons. Owning a home can actually make a big difference in your and your family’s life.

Here at Buyer Investor Match, we work with credit-challenged home buyers. And, we have seen that a family’s life is dramatically impacted by the school district and the home they choose.

For many people, fulfilling this American dream becomes very difficult because they struggle to overcome credit-challenges. The banks are tightening their underwriting norms and reject mortgage applications for reasons beyond the control of prospective home buyers such as the lack of social security number, identity theft and self-employment.

While overcoming credit-challenges can sometimes be difficult, you should know that it’s not impossible. Home ownership improves your life in so many ways that it is worth the efforts. Related article: Signs that tell you it’s time to buy a home (even if your credit score is low)

Here are five benefits of home ownership:

Your build equity

When you are paying rent, you are just throwing away your money and making someone else rich. When you own a home, you still have to make mortgage payments but you build equity every month. It means that your ownership in the property continues to increase every month as the amount of money that you owe to your lender gets reduced with each monthly payment. Your equity in your home is the amount of money you can sell it for minus what you still owe on it.

Tax saving

The fact that you can save on your taxes is one of the best advantages of home ownership. If you have taken out a mortgage, you can deduct the interest you pay on your mortgage from your income tax liabilities. You can also deduct property tax paid on your primary residence. It can help you save thousands of dollars annually.

Did you know that you can put your equity as collateral and get a loan to pay off other debts including a credit card debt? By shifting your credit card debts to your home equity loan, you not only pay a lower interest rate than the exorbitant credit card interest rates, but can also deduct the interest you pay on a home equity loan from your income tax.

You are forced to save money

If you find it difficult to save money, a mortgage can easily change your spending habits. Making mortgage payments is a long-term financial commitment. By making monthly payments, you will reduce your financial liabilities, and at the same build wealth in form of equity. Home ownership is in a way a forced saving plan.

Buying is cheaper than renting in the long run

You may find that your rental payments are initially lower than your monthly mortgage payment. But in the long run, buying is almost always cheaper then renting because the interest portion of your mortgage payment will decrease and you will pay more towards reducing your principal after a few years. Your interest payments will eventually be lower than the rent.

A big impact on your and your family’s life

You can buy a home in any school district of your choice, start a family and raise kids. You will enjoy a social status and a sense of belonging to a particular place. You will also find it easier to build your network in the community. You will be free to make any improvements to your home that you want to. These improvements or upgrades will most likely increase its value. You will also build your credit score by making monthly mortgage payments on time.

In conclusion

Needless to say, home ownership will improve the quality of your life to a great extent. As already mentioned, you will need to surmount many challenges in order to fulfil your home ownership dream. If these challenges include any difficulty in getting a mortgage, we can help you obtain one with owner financing. If you are able to arrange for a down payment of 15% or more, you can start your home ownership journey immediately. Just click on the button below to set an appointment with us using our online calculator: