Like manypeople in their 20s, April Weston was tired of renting an apartment.
“I had beenrenting for three years and I was tired of wasting my money. I knew that when Imoved I wouldn’t own anything but the furniture.” Weston said.
That’s when shestarted researching and going to first-time home-buyer workshops.
“At theworkshops, they gave me advice about checking my credit and looking into howmuch I would be able to finance,” Weston said.
The Fannie Maewebsite (www.fanniemae.com) suggests that prospective home-owners check theircredit score with all three credit bureaus and create a budget that includesthe down payment, closing costs, monthly mortgage payments and insurance.
Experts agreeyoung adults should seek the benefits of home ownership. “When you buy a houseyou begin to build your personal net wealth instead of your landlord’s,” saidBrad Downs, real estate agent with RE/Max First.
Weston knowsthe prospect of owning a home can be overwhelming, “My major concern was howmuch would I have to pay every month,” she said.
After weighingher options about the type of mortgage that would best fit her situation, shefound out that her monthly payments would only be $15 more than her currentrent.
There are manyprograms available to the first-time buyer. The United States Department ofHousing and Urban Development offers insured mortgages to single families inboth rural and urban communities.
They also offerloans that convert the equity in house in to cash and make repairs to the hometo increase the value. Through the Office of Community Development, first- timebuyers may qualify for Homebuyers Assistance Program where they can receive a$10,000 interest-free loan that can be applied to the down payment on yourhome. The Teacher Next Doorprogram helps classroom teachers in grades K-12 buy a home at a 50 percentdiscount.
While HUD loansare insured by the government, there are many other types of mortgages tochoice from. You must decide theterms of mortgage or how long you want to repay the loan; you must alsodetermine if a fixed or adjustable rate is best for you.
Afterpurchasing property you will find that interest in a house is often taxdeductible, you gain the flexibility to change your surroundings, and you canuse the equity that has accumulated in the home for future investments.
“I’m going touse the house to help with the college expenses that my children will have whenthey start school,” Weston said.
To find outmore information on La. home buyer programs you can contact the Office ofCommunity Development at (225)389-3039 and to find out about programs throughHUD you can visit their website www.hud.gov.
