Homeowner Versus Renter Benefits And Advantages

ByGustan Cho

This article is about Advantages And Benefits Of Being Homeowner Versus Renter 

Most folks who are looking for an apartment or home to rent need to complete a rental application and pay a credit check fee of $25.00 or more dollars.

  • The landlord will also request references, paycheck stubs, and will probably also verify your employment
  • The landlord might also request tax returns as well as bank statements depending on how strict their rental application process is
  • If everything checks out, the landlord will require you to put a security deposit which can be your first month and last month rent
  • The rental application process is very similar to the home buying process and on this blog, we will discuss the advantages of being a homeowner versus renter

Homeowner Versus Renter

Many renters do not realize that they actually qualify being a homeowner versus renter.

  • Many renters feel that they do not qualify to be a homeowner
  • This is because they feel that they need substantial funds for the down payment and/or closing costs in purchasing a home
  • Renters also feel that they need perfect credit to qualify for a residential mortgage loan

Renters feel that just because they have had prior credit problems, they do not qualify to be homeowners.

Benefits Of Being A Homeowner Versus Renter

I have great news for renters.

  • How would you like to be a homeowner versus renter? 
  • How would you like to live the American Dream in being a homeowner and start building equity? 
  • Have you had prior credit problems? 
  • Have you filed for bankruptcy? 
  • Are your credit scores low? 
  • Do you have bruised credit?   
  • Have you had a prior foreclosure, deed in lieu of foreclosure, short sale?  

Have you had prior late payments, collections, judgments, tax liens, and charge offs?

Qualifying For Mortgage With Direct Lender With No Overlays

If the answer is yes to the above questions, you can still qualify for a residential mortgage loan under our FHA Loans with no lender overlays.

  • As long as you have a job or steady income but had prior credit and financial issues, we can help you get a mortgage approval
  • Gustan Cho Associates can help you be a  homeowner versus renter with very little money down
  • Gustan Cho Associates. can help you cover all of your home purchase’s closing costs with zero money out of pocket
  • We can also possibly help you get a home with very little money or no money out of pocket as long as you can prove you have the minimum required down payment to meet mortgage guidelines

The minimum down payment required might be equivalent to the money needed for your security deposit for a home rental.

How Do I Get Started To Be A Homeowner Versus Renter

If you are a renter and want to be a homeowner versus renter, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. Visit us at www.gustancho.com and we will gladly help you realize the American Dream of homeownership.

  • Those wanting to qualify for a mortgage loan can start by completing an online mortgage application by clicking  APPLY NOW icon at the top right of this website
  • I will then pull credit and review both completed mortgage application and credit reports
  • I will then submit both the mortgage application and credit report to Fannie Mae’s Automated Underwriting System ( AUS ) for an automated mortgage loan approval
  • Once I get DU AUS automated approval by Fannie Mae, you are on the road to being a homeowner versus renter

Unlike banks and most mortgage bankers, Gustan Cho Associates are direct lenders with no lender overlays  As long as the mortgage loan applicant gets an automated approval by AUS and can provide documentation of income, assets, and liabilities, borrowers will get a mortgage loan approval and close on their mortgage loan.

How Much Money Do I Need To Be A Homeowner Versus Renter

There are two costs that come into play in being a homeowner versus renter.

  • The first is the down payment of a minimum of the purchase price
  • Down Payment Required On Home Purchase Depends on the loan program
  • The second is third party closing costs
  • Examples of closing costs are the following:
    • title charges
    • transfer taxes
    • appraisal
    • professional fees
    • other costs related to closing the mortgage loan.
  • Do not worry about the closing costs
  • 100% of the closing costs can be covered either by getting a sellers concession towards buyers closing costs or by a lenders credit towards a borrowers closing costs
  • The down payment needs to be shown on the bank account and sourced
  • For those who do not have the required down payment can have the down payment gifted by a family member
  • Keep in mind that in many instances, borrowers do not need the full 3.5% to close on new home purchase when buying a home in a state like Illinois where property taxes are paid in arrears

However, the down payment still needs to be shown.

Buying Home In Illinois

Illinois is one of those states where property taxes are paid in arrears. Home Buyers buying a home in Illinois will get one-year property tax prorations at closing. Property Tax Proration Credits can be used to offset down payment.

All property taxes are paid in arrears in Illinois so the seller owes buyers the previous year’s property taxes and tax prorations can be allocated towards a buyer’s down payment.

  • If property tax prorations exceed required 3.5% down payment requirement on FHA home purchase, home buyers will not need to put any down payment
  • Home Buyers are purchasing a new home with zero money down and can get cash-back at closing

Many times, home buyers get cashback and home with zero money down on a home purchase.  Please contact us at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. Gustan Cho Associates is a national lender licensed in multiple states with no lender overlays on government and conventional loans.

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