Should I Buy a Home?

There are many types of homes—traditional, modular, manufactured, or trailers. Advantages exist for owning any type. At the same time, homeownership comes with a number of added responsibilities.

Advantages of homeownership:

Homeownership helps make you a more permanent part of your community and neighborhood.
Often, your home will grow in value through the years.
The interest you pay on your home is often tax deductible.
Owning your own home can help you earn equity in your home, which you can tap into for future financial needs. Equity is the difference between the current value of your home (as it increases in value over time) and the amount owed on the mortgage. You can borrow against the equity in your home to pay for other investments in the future (called leveraging), such as a college education or starting a business of your own.
When you own your own home, you can fix it almost any way you like. For example, you can paint it, build an extra room, or add a porch.

Responsibilities of homeownership:

You are responsible for all maintenance and repairs both inside and outside your home. Keeping a house in good repair can be time consuming and costly. If the plumbing breaks or the roof leaks, there’s no landlord to call. It’s up to you to get it fixed.
You may need to purchase additional basic items such as a lawn mower, garden tools, ladder, or major appliances.

Check Your Credit Record

Having a good credit record is the first step toward homeownership. Having a good credit record means that you pay your rent and bills on time, among other things. However, having a less than perfect credit record doesn’t automatically prevent you from getting a mortgage loan. Click here to find out more about how to check your credit.

Tribal member, Jennifer, wanted to own her own home and did her homework. She started by attending tribal housing meetings, but the process took a long time. "It took a year and a half," she says. Meanwhile, Jennifer knew she needed to check her credit. “I didn’t have good credit or bad credit; I just didn’t have enough credit.”

Jennifer applied for a United States Department of Agriculture (USDA) home loan. “There were a lot of steps and it frustrates a lot of people because they don’t know how to get from point A to point B. They don’t know who to ask for help,” she explained. But she’s happy with her new home and the mortgage arrangements she was able to make.

“My payment is $300 each month and the USDA pays the mortgage amount above that,” said Jennifer. “I liked the USDA program because it included one-year home insurance.”