National Affordable Housing Network (NAHN) is known for helping their clients find affordable housing and improve their financial situation through Credit Counseling so that they are ready for homeownership. Our Mutual Self Help Program works with Habitat for Humanity of Southwest Montana to allow families to complete 65% or more of their home as part of a build team that works together on one another’s homes which saves a large amount on construction costs. Many of the families that come through NAHN’s Mutual Self Help Program have not had the opportunity to own their home before. This blog will explain the main differences between renting and owning a home.
Firstly, homeowners are contributing towards full ownership of their home as opposed to paying a rent every month that doesn’t lead to homeownership. This is a massive difference in terms of personal finance. Using your hard earned money to pay towards a home of your own increases your personal wealth by gaining another asset instead of paying a landlord for temporary housing. Homeownership also allows you to have a freedom that renting does not. You are able to make changes to the building and landscape to fit your needs or wants. Renting has restrictions on changes that are able to be made to your apartment or house and usually the landlord will not allow a renter to customize their temporary home.
Of course, homeownership has its complications as well. A major distinction is that homeowners have the responsibility of upkeep on their home. Instead of calling a landlord and filling out a maintenance request, the homeowner has to assess the repair themselves and either try to fix it or hire someone to make the repairs. Once you sign the mortgage agreement, the house and property is the responsibility of the homeowner. This means that the homeowner should have some money saved in case an urgent repair is needed.
If you would like to apply for a home or would like to benefit from our free Credit Counseling program, fill out the New Client Intake Form. Also, like us on Facebook to stay up to date with new opportunities and programs available through National Affordable Housing Network. Thank you for reading, make sure to check back soon for new content.