Stop Renting. Here's 7 Ways Get an Affordable Home

According to the Department of Housing and Urban Development, the general accepted definition of affordable housing is for a household to pay no more than 30% of its annual income on housing.  A family that pays more than 30% of its income on housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation, and medical care. This post, however, focuses on home ownership as opposed to renting and will offer an overview on owning affordable housing while not having to pay no more than 30 per cent of your annual income for it.  In acquiring affordable housing and building equity, it depends on you and not on the mortgage lender. Here are 7 ways in which you can acquire affordable housing with a minimum down payment if you qualify for mortgage or how to do it if you don't qualify for a mortgage.  The ways to acquire affordable housing are as follows:   county down payment assistance,   city down payment assistance,   lease with an option to buy,   contract for deed,   owner will carry,   not-for-profit grant money,   and, a wraparound mortgage. Each of the seven ways represent a viable strategy for acquiring affordable housing whether you are going for a mortgage or not and should be looked into and discussed with a trusted adviser in detail. Remember. as a homeowner, you own equity and an appreciating asset; you have have peace and privacy; and, you have an estate that can be inherited by your survivors.  For a free consultation on homeownership, call (773) 614-3201

Quick Guide to Buying the Best Homeowners Policy Part 1

When shopping for home insurance, remember this: Insure your house for the cost to replace it (meaning reconstruction costs), not its real estate "market value", and don't factor in the value of your land. 

Also know that a home insurance policy covers much more than damage to your house. 

There are additional coverages within a home insurance policy with limits often set as a percentage of the dwelling's coverage amount. (Check your own policy for limits.)

• Your belongings. (Often 50 percent of the of the dwelling amount.)    

• Certain structures outside your house, such as your garage or fence. (Often 10 percent of     the dwelling amount.)

• Loss of use, meaning additional living expenses you incur if you can't live at home due to damage.     This could include hotel bills, restaurant meals and laundry costs. (Often 20 percent of the dwelling  amount.)

• Liability, for cases where you are sued for damages or injuries to someone else.

• Medical bills for people injured on your property or by your pet.

  Other items may be covered under your home insurance, with specific limits for each, so check your   policy or ask your agent:

• Downed trees.

• Replacement of lawn, trees and shrubs.

• Debris removal.

• Power outages, including food spoilage.

• Grave markers.

• Unauthorized charges to your credit cards.

    

You may also need special add-ons for valuables such as jewelry, your computer equipment, antiques and other pricey possessions, where their value exceeds the coverage limit of your policy.

Home insurance does not cover earthquakes or floods - you'll need to buy separate policies for those if you want coverage for those disasters. And in some areas of the country you need to buy windstorm coverage  separately. Now go to the Part 2 Guide.

Lending institutions usually require mortgage customers to purchase home insurance. Don't rely on the coverage levels mandated by your bank or mortgage company. Those levels are designed to protect the  house itself, but not necessarily your possessions. That's why it's important to check with your agent or  insurance company to make sure you have adequate coverage.

Have questions about your Homeowners' policy, call (773) 614-3201

  

4 Most Popular Ways to Own a Home - the Pros and Cons

You will probably look at and consider many homes before you make an offer on one. 

But even before you begin house hunting, it helps to have in mind the type of home you want and the features that are most important to you. 

Here are the 4 Popular Ways to Own a Home and the Pros and Cons.:

THE TYPES OF HOME OWNERSHIP

1. Single family Ownership 
This is the most popular type of home ownership. As the owner of a single-family dwelling, you are totally responsible for paying the mortgage, property taxes, and any other carrying expenses, including all maintenance and repair costs.

2. Condominium Ownership
As the owner of a condominium, you own your living quarters (apartment, town home, or other unit) in the same way that a single-family homeowner does. You also own a share of the common space, such as gardens, parking areas, and community facilities (e.g., pool, recreation hall, tennis court). You pay a monthly maintenance fee for the common expenses. The owners' association, which you belong to makes decisions about how the condo is run.

3. Co-operative  Ownership
As the owner of a co-op, you buy a share or a number of shares in the corporation that owns and manages the building your apartment is in and the land it is on. If you took out a mortgage for the apartment, you are responsible for paying it off. You also pay a monthly maintenance fee for your part of co-op expenses, repairs, and taxes. You must, however, be approved by the co-op board before you can purchase.

4. Multi-family Ownership
This type of home has separate living quarters for two or more families to rent. The owner may be able to use rent from the other tenants to cover his or her own housing costs. These homes are often restricted to certain areas by zoning laws.

Condominiums and co-ops 
Depending upon the location, this type of home may be less expensive than single-family homes, although association fees can drive up the cost. They may also be safer and provide a variety of services and extra features that single-family homeowners often can't afford. However, you must obey the by-laws and rules of the association. Also, these dwellings generally do not appreciate in real estate value as quickly as single-family homes do.


Interested in home ownership, call for a free consultation, (773) 614-3201