Why You Probably Can Afford a Home!

Is there anything more intimidating than the idea of owning a home?  That is a 30-year commitment! For many first-time homebuyers, you are talking about signing of on more life than you have even lived to this point.  There is an entire millennial edition of a game making fun of the idea that the dream of owning your own home is too big for young people to accomplish.  It is not nearly that hard to accomplish.  Below, you will find a quick hits list dispelling some myths about what it takes to purchase your first home.

• You do need a down payment, but it is not as much as you think. The traditional 20% down payment requirement has been reduced for quite a while, but the myth persists, regardless.  There are common government programs that require far less upfront to get into a home.  Many states have Down Payment Assistance programs that further reduce the requirements.  Colorado’s most known program allows for a little as $1,000 dollars down from the borrower to buy a house. My common rule of thumb is, you can likely get a home for less than first and last month’s rent deposit on your next place. 
• I need to make a lot of money to qualify to buy a home. You do need to make money, but it is likely less than you think to qualify.  I personally do not recommend stretching to buy the biggest house you can afford, but you would be surprised at what a steady job will qualify for taxes in qualifying a borrower.  This means you make more than you think or feel you do. 
• I have too much student debt to buy a home. Student debt is NOT disqualifying for buying a home!  It can be a lot, but many first-time homeowner programs discount or allow you to entirely ignore student debt in qualifying, depending on your situation. 
• I do not want to live in the same place for the rest of my life: That’s fine, people move all the time. Most loan programs require you to live in the home you have purchased for a period. After that has passed you could move out and rent it, or just sell the home itself and take the equity you have acquired with you.  There is NO minimum amount of time you must own a home after you’ve bought it before you can sell it if you like, just a minimum time before you rent it out.