For an overwhelming number of Americans, homeownership is probably the best financial decision they can make. Here are just a few reasons why:

1. Pride of Ownership. As a renter, you know it’s not really your home, even though you say “my” house or apartment. If you make any improvements to a place you rent, you’re only adding value to the asset that belongs to someone else. When you improve your own home, you increase your net worth.
2. Homeowners have a higher net worth than renters. This is not an opinion- it’s a fact.
3. Home ownership builds wealth in two ways: through the forced savings of paying down a mortgage, and through appreciation — the rise in the homes value over time.
4. Tax deductions and benefits (such as the recent tax credit stimulas)

Everyone knows that there are tax benefits for the most part. Many times they don’t understand exactly how much it equates to come tax time though. We’ve seen tax refunds around $4,000 at the end of the year, and if you claim more dependents, that could mean an additional $350 a month or so. All because your mortgage interest is tax deductable, and typically it’s your largest monthly expense. In other words, you don’t pay taxes on the income you earn that goes to pay for 95% of your mortgage payment.

Now there aren’t any government tax credits anymore. But regardless, there have always been tax advantages to buying a home as opposed to renting, even if there were no credits. Most people never received a tax credit when buying their first home. And ultimately, the $8,000 tax credit was only worth the equivalent of around 2 years worth of deductions. Most homes are financed for 30 years, so you’ll still see huge benefits over the long run.

As far as some of the current First Time Home Buyer Programs, VA (Veterans Administration) and FHA (Federal Housing Administration) insured loans are by far the best First Time Home Buyer Loans out there today. You only need 3.5% down payment (conventional is always 5-20% down), there is no mortgage insurance (insurance protecting the lender, not you), and they are backed up by the government. They are all 15-30 year fixed rate loans, which means your interest will never change, and they’re also the lowest interest rate loans that a First Time Home Buyer can possibly get.

VA and FHA have very reasonable and much easier standards on qualification. Mainly, you need to have a 620 credit score or higher and made all your payments on time in the last 12 months, which isn’t exactly shooting for the moon.