RENT vs. OWN
Lease
What is a contract signed by a renter or lessee?
It's called FHA for short.
What is the Federal Housing Administration?
A bare bones homeowners insurance policy that covers only the dwelling from 10 named perils. Personal property, liability and medical expenses are not covered.
What is an HO-1 homeowners insurance policy?
A renter
Who does not pay real estate property tax?
30% of gross monthly income
How much of your gross monthly income should you budget for rent or mortgage costs?
Only one provides a positive return on investment.
What is real estate ownership?
A first time home buyer-occupant
Who can qualify for an FHA loan?
Better than an HO-1 policy. It adds coverage for liability, personal property, and 6 more named perils, like falling objects and building collapse from the snow and ice.
What is an HO-2 homeowners insurance policy?
It is the basis of real estate property tax.
What is a home's owned value?
35% to 40%
What's the California average?
Mortgage
What is the contract you sign with a bank when you borrow money to buy a home?
This kind of lender is approved, regulated, and insured by the FHA.
What are private mortgage lenders?
An open policy covering everything except what is excluded. Better than HO-1 or HO-2.
What is an HO-3 open peril homeowners insurance policy.
They calculate a property's real estate tax.
What are local governments?
$2,989
What is the average monthly rent in San Diego for an 875 square foot apartment?
It's cheaper, but less certain.
What is renting (Pro and Con)?
Pro vs. Con. Lower down payments, more accessible to buyers with lower credit scores and better interest rates for low-credit borrowers
What are the pros of an FHA loan?
It's a policy for renters that covers personal property and liability only. It does not cover the whole building.
What is an HO-4 renter's insurance policy?
All of these are funded by county real estate taxes. Name a few.
What are K-12 school districts, community colleges, parks, libraries, fire and police departments, hospitals, emergency services, water and sanitation departments and more?
Real estate property tax, homeowners/renters insurance, and mortgage interest
What are hidden housing costs?
It's a solid investment, but more expensive.
What is owning a home (Pro and Con)?
Lenders must be FHA approved. Homes must be owner occupied. Loans are limited based on home location.
What are the cons of an FHA loan?
This policy covers the walls, floors, and ceiling of a condominium unit. It includes personal property and liability coverage. It does not cover the whole building.
What is a HO-6 Condominium homeowners insurance policy?
This state has the lowest real estate tax rate in the U.S. Hint: it was named in our slide presentation.
What is Hawaii?
About 340 miles
What is the mileage between San Diego and the closest affordable large city?