Some people feel like homeownership is a dream that they can’t achieve. If you are stuck in simply renting an apartment or a home without, it can be a vicious cycle to get out of and into a home of your own.
Although the Hero Home Program is focused on community heroes, they are committed to helping everyone achieve their dreams of homeownership. And renters face unique challenges. Monthly expenses might hinder you from saving money towards a house, especially if you live in high-profile cities or areas where living costs are high.
In this article, we’ll talk about how you can break the renting cycle so you can achieve the home of your dreams without breaking the bank either.
Alright, let’s get right on to it! So how do you break the cycle of rent to get into a home?
Escaping the rent trap
According to Newsweek, the average rent in the United States just hit $1,200, while this source says that the average mortgage in the US is only around $1,000 a month. Now, that may seem like homeownership is the better option. But that extra $200 saved goes straight into insurance, repairs, and upkeep of the house. So it is really a give and take situation right now, as no one option is better financially with the current trends on the market.
The renting cycle is a harsh one — you move into a place within your budget and then manage to set aside change for your future home. And then, rent increases, either at the end of the month or the end of your lease.
Remember your rights as a renter: landlords must give 30 days’ notice to any rent increase. But also, if your lease is expiring, and you are worried prices will go up, ask your landlord about an addendum for a new term. Think of it as an extension to the existing contract, and some places may even allow you to keep your current rent price. Others may find a happy medium for you, especially if you are a good tenant.
However, all of that combines to keep renters as renters instead of letting them become homeowners. And if anything we just described to you sounds familiar, then here are some tips to escape the rent trap and work to go into the home of your dreams. Or at least the first home of your dreams.
1. Keep a good credit score.
Some renters may find that credit score is an elusive term. How can a renter build credit if they have no loans or credit cards? Well, actually, renters can build a lot of credit. Paying your rent on or before the due date actually influences your credit score! So if you are a person who forgets rent due dates or is always a day late on the payment, then it is a good idea to find a system to pay rent on time.
And if you are living the paycheck-to-paycheck life, and that is why your rent is always a few days late, ask your landlord to move your due date a few days. For example, if you know you get paid on Fridays, then simply ask your landlord for rent to be due the first Friday of the month, so that you can always pay it on time. Many lease agreements and landlords have three to five days grace period to accommodate such situations. But if yours doesn’t, simply ask if you can work out a deal with them to pay it on a different day at the start of the month.
2. Save for a down payment.
Now, after all, we have mentioned the price of rent, it seems like salt in the wound to say that breaking the renting cycle is as simple as just saving money. We know it’s not. Especially if you live on a tight money schedule (our hearts go out to those who get paid monthly), it can be extremely difficult to save money.
Sit down and create a budget of your monthly expenses if you haven’t already. And if you have, do it again. Not to mention, look at credit card statements and spending. Is there something or an area you can cut back on? Is there a usage bill that can be trimmed down?
Setting aside $5 a month for a year-long lease will net you $600. That may not seem like a lot, but it can help make a dent in a down payment. When it comes to saving for a down payment, there is no need to aim to save for the entire thing. Save what you can, and the rest can be figured out with the mortgage.
3. Consider low or no down payment home loans.
Why don’t you need to save for the entire down payment? Well, especially if you are a first-time homebuyer, there are loads of options for you to choose from: low or no-down-payment home loans.
FHA, or the Federal Housing Administration, has tons of accessible monies for qualified home buyers in the form of down payment assistance. Not to mention, some of the loans, especially those in the form of grants, don’t have to be paid back. There are even low-interest or interest-free loan options.
City, State, and County government programs are also available. And they are similar to FHA programs, but more tailored to your specific region. So when it comes to looking for ways to cover down payments, be sure to look at what lower levels of government have to offer as well.
With the wealth of programming at your fingertips now, finding what is worth it or what you qualify for can be hard. We can help you get started and find the right fit for you.
4. Talk to Hero Home Programs™ professionals.
Hero Home Programs™ can help you. And it’s free to apply. All you need is your name, phone number, and your status as a renter. No financial hoops to jump through at any point in the process.
The benefits of the Hero Home Program for renters:
- Access to grants. Hero Home Programs™ does all the work for you in finding grants and loans for you. And remember, grants don’t need to be paid back — what better team to have on your side? Hero Home Programs™ puts in the legwork to find the best deals for you, so you can spend time relaxing and saving money.
- Vendor discounts. Did someone say carpet cleaners? Yes, please! With Hero Hero Home Programs™, you get access to discounts to services that can ensure that you get your full deposit back.
- First-time home buyer programs. If you are a first-time homebuyer, there is a lot of assistance available to you, and Hero Home Programs™ can help you find those programs, along with some of their own.
- Rent to own houses. If homeownership is a distant goal or you aren’t ready to commit to a house yet, you can look into rent-to-own homes. These have a lot of benefits and appeal and really take the stress off finding a home later down the line.
Get out of the renting cycle.
We are dedicated to helping people achieve their dreams of homeownership. And if you are a renter, that includes you, no matter your occupation. Everyone deserves to own a space that they can live in and call their own without going into massive amounts of debt.
As a renter, you can still make your dreams of owning a house a reality with the help of Hero Home Programs™. They can help you find programs that are right for you and your budget, along with providing help every step of the way.
Contact us today
If you are interested, request a consultation to connect with a Hero Home Program™ agent near you! It is completely free and absolutely no obligation!
So what are you waiting for? Break the cycle and go from renter to homeowner.