Rent vs Buy in today’s market? With FHA rates so low, and FHA guidelines so flexible, we wonder why anybody with adequate credit would continue to rent in today’s market.
A $225,000 house in Eastern Contra Costa County would rent for about $1,650 to $1,700 per month. That same house can be purchased with FHA financing with only about $8,000 out of pocket for the down payment, and even that money can be a “gift”. The Total Payment (PITI+MI) would be around $1,600. This is less than the rent even before the annual tax benefits are considered. Add in the tax benefits and the buyer will likely save another $300 to $400 per month.
With rates and prices this low, NOW is the time to buy. And, rates will not and cannot stay this low for ever. We will discuss that tomorrow.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167