I’m Interested in Homeownership – Do I Make Enough Money?
This month we’re taking a closer look at four myths that can cause people to self-select out of potential homeownership. This week’s segment – Myth: I Don’t Make Enough to Afford Owning My Own Home
When you’re interested in transitioning to homeownership, the first thing you need to consider is whether you’ll be able to afford the monthly mortgage.
Many people mistakenly believe that mortgage payments are always higher than comparable monthly rent. But especially in today’s rental market, a mortgage payment can be less than comparable monthly rent depending on your down payment and the price of the home you purchase. And according to research from the Minnesota Housing Finance Agency, there are more than 64,000 non-homeowner households of color in the state that likely have the income needed to become homeowners.
Kasey Kier is the Assistant Commissioner for Single Family Housing with Minnesota Housing. She’s also one of two Co-Chairs of the Homeownership Opportunity Alliance. “Owning, compared with renting, provides an opportunity to build equity and wealth,” she says. “We want people to know there are resources out there to help them become successful homeowners.”
Principle among those resources is the Homeownership Advisor’s Network, headed up by the nonprofit Minnesota Homeownership Center. “A Homeownership Advisor can look at an individual’s unique financial and household circumstances and plot a course forward to attaining sustainable ownership,” says Julie Gugin, executive director of the Minnesota Homeownership Center and the second Co-Chair of the Homeownership Opportunity Alliance. “These services are free of charge, and have the potential to dramatically impact the lives of each household member for years to come.”
There’s no doubt that achieving homeownership is complicated. But with the help of a nonprofit Homeownership Advisor, it is achievable. The path and time it takes is different for everyone, but with patience and persistence, you can lay a foundation of building assets and success for you and your family! For more information, find a Homeownership Advisor near you.