Is Homeownership Right for You?

Advantages

There are many good reasons to decide to purchase a home. Some of the benefits you may expect if you make that decision are:

Many people with disabilities have lived their entire lives in spaces that belonged to, and were controlled by, others. Most of us find our greatest comfort and security in surroundings we call "a place of our own." But, for people with disabilities, "home" often means "my room in the group home," or, "my room in my parent’s house," or, "my bed in the room I share with my roommates," or, "my room in the nursing home, adult foster care, or, the institution." Making the decision to purchase your own home is one way you can gain a greater degree of freedom and control over your life. For example, when you buy your own home, you choose the location. You decide which neighborhood is right for you. You choose the type of home in which you prefer to live. You may choose a house, condominium, manufactured home, large or small, wood or brick.

Owning your home means you decide who gets a copy of your keys. It means that you decide whether to invite another person to live with you. You may be able to rent a room in your house. Having a place of your own may give you your first chance to decide where the furniture is placed, what pictures and decorations you hang on your walls, who is allowed through your front door, and who shares your space and your life. Having your own place means that you can have greater opportunities for privacy. In your own home, you make the rules about which areas are off limits. These rules, or boundaries, put you in charge of deciding who may enter specific rooms or areas in your home.

If you need to modify your house so that it is accessible to you, these changes can be suited to your specific needs and can be made permanent. When you rent, the landlord can limit the types of changes you make, and can require you to return the house or apartment to the original condition or remove the modifications that were made.

In addition to these benefits, homeownership offers stability. When you own your home, the chance of someone else deciding that you must move disappears. As long as you meet all your obligations as a homeowner, you cannot be evicted or made to move unless you choose to do so.

Homeownership brings with it new and valued roles, such as community member, taxpayer, and neighbor. Your community status is enhanced when you are viewed as a responsible adult who owns a piece of a neighborhood. As a homeowner and property tax payer, you contribute to the local economy and have a voice in local government. Much of a person’s standing and perceived membership in his or her community comes from property ownership. Because approximately 65 percent of all Americans own their own homes, achieving the goal of homeownership is often something envied and respected. Owning a piece of property in a neighborhood brings a feeling of dignity and belonging.

One positive outcome of budgeting for and paying your mortgage (house payment) and other housing costs each month is that you will need to develop the habit of setting money aside to meet those expenses. This means that with practice, planning, and hard work, you have a better chance to save money to buy or do things you may need or want.

Moving often means an increase in housing expenses. There may be a security deposit, moving expenses, set-up costs, or a rent increase. In your own home, you can have a "fixed-rate mortgage," which means that your mortgage principal and interest payment remains the same each month for as long as you own your home. If property taxes are included in your monthly mortgage payment, the payment may change slightly if the taxes increase or decrease. You can stay in your home as long as it meets your needs and you pay your bills.

A tax is money paid to local, state, and federal governments to cover the cost of services they provide. Depending on the area in which you live, your taxes may pay for schools, local government administration, road maintenance, police, fire, and numerous other services. While owning a home may mean you pay more in taxes (property tax), it also means you could receive a tax deduction from the federal government. You may pay less in federal income tax. The federal government encourages homeownership by providing homeowners significant tax benefits that are not available to renters. You should consult a tax advisor for more information.

When you begin to develop a strategy to purchase a home, you will also need to develop a plan for getting the personal assistance you need. If you live in an agency-owned or controlled home, the assistance that is available must meet the needs of all of the people who live in the home. In your own home, assistance can be tailored to suit your unique preferences and needs. Assistance is personalized so that there is the right amount and type for you.

Owning a home is an investment. Not only are you putting money into property which may become more valuable with time, you are buying something that you can pass on to your children or other family members when you are gone.

If you decide that you want to own your own house, you must be prepared for hard work. The process can be very complicated, taking a great deal of planning, many meetings, and working together with people. There may be some disappointments, delays, and setbacks along the way. There is a lot of paperwork involved in any home purchase, and much of it is hard to read and nearly impossible to understand without legal assistance.

From the time you decide to purchase a home until the moment you finally unlock your own front door, the process can be very long. Most homeowners will tell you that it seemed to take forever. It is not unusual for timelines to change and delays to occur during the process. The least amount of time the process will take is about thirty days, but it can take several months.

This issue must be considered by anyone who receives public benefits. If you choose to own your own home, it is important to know if and how your benefits will be affected. Depending on your personal situation, you may run the risk of losing your benefits. Many people receiving public assistance have purchased their own homes without losing their benefits, but understanding all the rules is critical if you are to continue to receive all of your income. In following chapters, there is discussion on how to avoid losing your public benefits.

Some public benefits have certain restrictions that could affect homeownership. For example, if you have a HUD Section 8 voucher or certificate to assist you in paying your rent, you will not be permitted to use it for a mortgage payment. These vouchers and certificates may only be applied toward rental costs.

People who receive SSI benefits may not have more than $2,000 in cash resources in their possession at any time. Individuals who receive Medicaid funds have resource limitations ranging from $1,000 to $2,000, depending on the laws of the state in which they live. Because of these resource restrictions, people who receive public benefits do not have the ability to save enough money for typical down payment and closing costs. Later in the manual, we will discuss how you can overcome this obstacle. Each state has different regulations, so it is important that you find out about the rules that apply within your own state.

Part of being a homeowner means that you are responsible for maintaining a house and keeping it in good repair. This includes paying for repair materials and labor. It isn't always possible to plan in advance for repairs. For this reason, you will need to have money set aside for emergencies. Many people shy away from buying a house because they do not want the responsibility of maintaining a home (mowing the lawn, shoveling snow, taking care of needed repairs, etc.). One reason that condominiums are so popular is that there are minimal repair and maintenance responsibilities. Condo owners pay a monthly fee that covers these costs. They can enjoy the positive aspects of owning a home without having to worry about the details of exterior upkeep.

Owning a home can have a positive impact on living costs over the long-term. Homeownership usually means an initial increase in how much you pay for housing. Such things as maintenance, taxes, saving for repairs, and having funds reserved for mortgage payments and emergencies often mean the cost may be more, at first, to live in your home. Depending on your specific situation, upkeep of a home may mean a higher cost than you are prepared for. It is for this reason we recommend that you look carefully at your financial situation and fully understand the potential costs associated with homeownership.

If a borrower fails to pay monthly mortgage payments on time, the bank or other lender can take back the property. This action is called a foreclosure. The bank will sell the house to try to recover the money it loaned. A foreclosure will have a serious, long-term impact on your credit rating. It also means losing your home and all the money you have paid on the mortgage to date. To avoid this, you need to be fully prepared and be certain that homeownership is right for you.

Unlike a renter, a homeowner cannot move after simply giving the required notice to the landlord. If you are unsure about whether you want to live in the same place for more than a year or two, this might not be the ideal time to buy a house. You may wish to explore a number of neighborhoods, towns, or even areas of the country before making a decision to purchase a home and put down roots in one location.

Many people with disabilities do not have a guardian, but some do. Guardians may have a lot of questions and concerns about homeownership. If you do have a guardian, you will need to have that person involved from the beginning. You may even need to obtain approval from a probate court before you complete the process of buying a house.

Moving from a home controlled by others, whether it is your family’s home, an institution, a group home, or another living arrangement, means that you take on more responsibilities for your own life. Before you purchase a home, make sure that you have the level of assistance you need to live in your own home. You may need to spend some time investigating assistive technology, adaptive equipment, personal assistant services, and support provided by services in the community. For example, you can request that your bank or credit union pay your bills for you with money from your account. If you take medication, your local pharmacy may be willing to pre-package your medication in daily doses.

Living in your own home may present a few more complexities if you have trouble moving about. Adaptive equipment may help you to carry out a variety of activities, such as eating, dressing, and bathing. A voice-activated emergency call device may eliminate some health and safety concerns. Designing and securing this assistance in your new home is critical, but may be difficult to obtain and manage.

The following chart shows a summary of advantages and disadvantages of owning a home.