How do I know what I can afford?
Am I financially ready to own a home?
Can I buy a house if I make under $50k a year?
Every first-time homebuyer asks themselves these questions. So, if you're asking them today don't be ashamed. You're not alone. Buying a home is a very important decision and it's not an easy breezy process-- no matter your age or experience level. However, first things first: you must review your financial picture before making any money moves.
I repeat...
Being a renter and being a homeowner are two different things. I'm sure you knew this already but allow me to explain. As a renter, you don't have to pay for an array of expenses and repairs that are covered by the landlord (replacing the roof, fixing a leaky pipe, etc). When you buy a home, these costs become your responsibility. If something breaks, it's on you to fix it. In addition, you'll also be liable for paying certain fees and taxes. Some fees are part of your monthly mortgage payment while others are not. Among the costs shouldered by homeowners but not by renters are:
- Property taxes and special assessments
- Home/hazard insurance
- Property maintenance
- Association and membership fees (for condominiums, townhomes and some developments)
If you want to buy a home and you're ready to look at your finances I have you covered. Well, I should say MassHousing has you covered. MassHousing is an independent (quasi-public) agency that provides financing for affordable housing in Massachusetts. They raise money by selling bonds and lend the proceeds to low- and moderate-income homebuyers and homeowners. They also lend money to real estate investors who build or preserve affordable and/or mixed-income rental housing. MassHousing does not use taxpayer dollars to sustain its operations and they've provided more than $20B for affordable housing.
So what do I do next!?
Ready to peek under the hood and confront your personal finances? First, look at your monthly expenses, bills and payments needed to clear your debt. Then, consider all the expenses involved in owning a home, and determine your budget. Can you afford to buy a home with your current salary? Is it possible to own a home with $300,000 in student loans? The answer is YES!
Let's find out more with MassHousing's free tools:
