Rent Vs Buying And Grants

Rent Vs Buying And Grants

Buying vs. Renting??

As an agent this comes up ALL the time!  In Phoenix the rental market is on the rise and you will pay a premium to live in someone else's property!  It is ALWAYS a better option to save money by buying for yourself versus renting if that is an option!

I ALWAYS ask my rental clients "Why are you renting?".  There are a few typical answers I receive and some are valid and some need to be explored.  

  • Just moved to the area and not sure where I want to live... VALID reason!  Many people move to the area and explore the city before deciding where to "land" 

  • I don't want the upkeep of owning.... Another VALID reason... sort of!  Did you know that a Home Warranty can be bought to cover major repairs for a small service call fee!  I ALWAYS try to negotiate a Home Warranty into my purchase contracts!  The cost roughly $500-$1000 depending on the size of the home and the components you want covered. 

  • I don't have a down payment... INVALID reason *most* of the time!  If you have a 620 and want to live in Phoenix there are grants that do NOT have to be repaid.  FREE Money!  And NO this isn't "giving people who can't afford their homes money that will eventually be a waste".  This is giving people who are credit worthy and who are currently spending MORE in rent to exist money to move into a home that they can more than afford monthly that they may never have had a down payment for.   

Now we can review a couple of the most popular grant options.  You will need to contact a lender to find out which is the best fit for your situation.  Please feel free to ask me our lender's info and I will help you get started!  My first and foremost job is to make sure you are educated on ALL your options before you sign another lease!!

  • Home in 5- GREAT program that can be used all over the Valley!  It will give you your down payment up to 4% which means an FHA loan is the best option.  There is an income cap but you can use one person's income in order to remain below the cap.  Using this grant with an FHA loan means you will need to stay below the $270,000 purchase price cap.  There is a 2 year ownership requirement for this loan in order to not need to repay it.  If you use the Home in 5 you will need to plan to stay put for 2 years!

  • Pathway to Purchase- FANTASTIC option!  This program gives you UP TO $20,000 for closing cost *and* down payment!  It can be used with a Conventional loan which allows for a higher purchase price!  The income cap is also higher for this grant but again you can use one income and not the other!  The grant is available to those moving to certain areas of the Valley.  These areas include Goodyear, Buckeye, Avondale, El Mirage and Laveen.  IF these are areas you are considering then you should definitely speak to a lender about Pathway to Purchase!  It does require you to live in the home for 5 years without having to pay back the grant so keep that in mind when you think of utilizing this grant program!

So to review DON'T assume you HAVE to rent!  There are warranties and grants to help you become a home owner!  Please feel free to reach out to me to learn about ALL your options!  Invest in yourself and not your landlord if you have the option!

Serena Pell Headshot
Phone: 623-258-6703
Dated: July 3rd 2016
Views: 289
About Serena: ...

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