The American Dream has changed through the years but it seems to have always come with a home. With the younger generation coming up being affected by heavy debt, the thought of purchasing a home can seem impossible.
Many new homes such as Ormond Beach Florida new homes are priced from the mid-two-hundred range to the mid-three-hundred, with some four-hundred-thousand sprinkled in along with a few more expensive homes. The median value of owner-occupied housing units, whether mortgaged or owned, is about $208,800, according to the US Census. Homes can be affordable depending on where you’re located, and yet the generation with the most buying power is crippled by student loan debt, and cannot invest in a home.
With a Federal Housing Administration loan, or an FHA loan, the down payment is significantly less than what it would be. The FHA loan allows first time home buyers to put a down payment that is dependent on the FICO score of the borrower. Depending on that score, the borrower could put down a down payment that is 10 – 3.5% of the total home price. The borrower then has a payment that is a reasonable percentage of what their take-home pay is.
Under the FHA loan, their payment would be a reasonable amount so the borrower can continue to make scheduled payments on their debt while investing in their home. Once the home is paid off, the possibilities are endless for that homeowner. The payments made towards the mortgage can be placed elsewhere to build their wealth or pay off debt.
The American Dream is still attainable and can be done so using intelligent methods. One must be financially savvy in order to invest smartly and it can be done without spending money to get educated.