HUD (U.S. Department of Housing and Urban Development) is the nation’s housing agency committed to increasing homeownership. Secretary Alphonso Jackson encouraged families all over the country to make buying a home this new year’s resolution. He calls the goal a manageable process for those with a steady salary, good credit, and a few long-term debts. Jackson’s statement suggested how easy and beneficial homeownership can be for the average American.
By owning real property, Americans can accumulate wealth and achieve “financial independence and self-sufficiency.” Paying a mortgage is equal to building equity and creates an investment for the future. It also qualifies the owner for tax breaks which actually lower out-of-pocket costs. The goal is to aim for something affordable which Jackson measures as roughly two and one half times one’s annual salary.
Loans can be overwhelming and Jackson points out that in the last few years, a conventional loan of 10-20% down is no longer necessary. FHA-backed loans only require a down payment of 3%. First-time buyers may even be eligible for help with down payments and closing costs under HUD’s new American Dream Down-payment Initiative. HUD-certified experts can help with homeownership counseling, pointing out problems and helping to avoid them. Their website is a wonderful tool for finding the right kind of help.
Jackson also points out the value of a good real estate agent who listens carefully, understands the buyer’s needs and can offer good judgment. If the agent has given you a comfort level that includes good knowledge and good judgment, you have chosen the right agent.
