Five years of rent against five years of owning
The house payment on a $341,000 FHA loan at a 5.75% rate, with property taxes at Florida's statewide estimate of 0.74% of the price, $283 a month for insurance and FHA mortgage insurance, comes to about $2,600, the same as the rent. The difference is where the money goes. About $24,234 of the first five years of payments pays down the loan, money a renter never sees again.
Do your numbers qualify for it?
Paying $2,600 on time every month shows a lender you can carry the payment, but the lender still checks your income and debts. A $350,000 home on FHA needs about $5,670 a month in gross income with $400 in other monthly debts. The $350,000 income page has every program, and the rent vs own calculator checks your own income and rent together.
If the income comes up short, a parent or grandparent on Social Security can co-sign on FHA, and paying off a car loan lowers the bar. Call AAA Capital Funding at 888-601-8344 and we'll run your rent, income and debts on every program.
Other rents
| Monthly rent | Home it pays for with FHA | Loan paid down in 5 years |
|---|---|---|
| $1,000 | $105,000 | $7,462 |
| $1,200 | $135,000 | $9,594 |
| $1,400 | $164,000 | $11,655 |
| $1,600 | $193,000 | $13,716 |
| $1,800 | $223,000 | $15,848 |
| $2,000 | $252,000 | $17,909 |
| $2,200 | $282,000 | $20,041 |
| $2,400 | $311,000 | $22,102 |
| $2,600 | $341,000 | $24,234 |
| $2,800 | $370,000 | $26,295 |
| $3,000 | $400,000 | $28,427 |