- Home > Blog > Renting vs. Buying: Down Payment Assistance and How It Makes Homeownership More Accessible
- |
- Written by Olivia Huntley
Renting vs. Buying: Down Payment Assistance and How It Makes Homeownership More Accessible
Renting versus buying is a huge financial choice, but most renters don’t consider owning as a viable option since they feel the upfront costs are prohibitive. What most individuals don’t know is that down payment assistance programs can actually reduce the barrier to buying, and homeownership may be cheaper than renting in the years to come.
The Cost of Renting vs. Buying
Renting
Monthly rental payments persist perpetually with no equity and no return on investment. Rental also rises with time, and hence long-term affordability becomes doubtful.
Buying
Mortgage payments help you build equity, and with fixed-rate loans, your payments are more stable than rising rental charges.
Example Cost Breakdown (Michigan Market Averages)
- Renting a house – $1,500/month ($18,000 annually) with no return on investment.
- Home ownership – A $200,000 home with a mortgage could have the same monthly payment, except that some part of each payment is accumulating equity.
How Down Payment Assistance Lowers the Cost of Buying
Most first-time homebuyers are concerned about the down payment, but Michigan has some programs to assist:
- MSHDA Down Payment Assistance
Up to $10,000 down payment assistance for eligible buyers. - FHA Loans
Only require 3.5% down, making it easier to make the leap from renting. - VA & USDA Loans
Offer zero-down-payment options to eligible buyers, eliminating the obstacle of up-front costs.
Making the Switch from Renting to Buying
With the right assistance, homeownership can be as affordable as renting with the added benefit of equity, stability, and the potential for investment. Exploring your options can make homeownership a viable and reasonable financial decision.
See What You Qualify For
Find Your Home with See Open Homes
Buying a home can be intimidating, especially if you throw in financing, down payment assistance, and home viewing into the picture. See Open Homes simplifies this for you by offering you:
- Instant Access to Open Houses
See and walk through homes in your area on your schedule, without waiting for an agent. - A Hassle-Free Home Hunt
No pressure, no commitments—just simple, upfront property information and availability. - Assistance Program Guidance
Learn about down payment assistance programs that can make homeownership more affordable than renting.
Whether you are in a position to purchase or just viewing your options, SeeOpenHomes.com allows you to be in control of your home search with confidence. Start searching now!
Go see Open Homes!
