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The homebuying process may be daunting, but the benefits of owning a home far outweigh the drawbacks. The Federal Savings Bank has proudly helped countless service members and their families find the perfect home for their needs. Every situation is unique, but there are several clear upsides to homeownership – as well as a couple of downsides.


Benefits of Owning a Home

Long-term Stability

One of the biggest benefits of owning a home vs. renting is long-term stability. Laws governing the relationship between landlords and tenants vary widely from state to state, but having ultimate ownership of the property gives you more power than you’ll ever have as a renter. Even the best landlord may choose to sell your home at any time, leaving the fate of your lease in the hands of a new owner.

If you own your home, you and your family cannot be evicted unless you fail to make your mortgage payments and go into foreclosure. Renters do not have this guaranteed peace of mind, even if they make every rent payment on time.

More Stable Monthly Payments

When you own rather than rent, you may be better prepared to plan for your family’s future financially. Rent increases are always a danger for renters, whether they’re scheduled or random. If you own your home with a fixed-rate mortgage, your monthly payment to the lender will remain the same unless you choose to refinance. (Bear in mind that homeowner’s insurance and property taxes may still change.) If you have an adjustable-rate mortgage (ARM), your payments will start low and rise over time – but you will receive a schedule of these increases when you close on your home.


Drawbacks of Owning a Home

Just as renting has its share of benefits, there can be a couple of drawbacks to owning your home:

Maintenance and Repair

When you own your home, you bear responsibility for all maintenance and repair. A (literal) rainy day can make a real impact on your savings. You’ll be grateful for an emergency fund if you find yourself stuck without hot water. Remember to order a thorough home inspection of the home you’re about to buy, so you’re not caught off guard after the deal is closed.

High Upfront Costs

Buying your own home has upfront costs, including the down payment, inspections, title fees, and more. Applying for a mortgage with The Federal Savings Bank gets you access to specialists who can help you identify the best path to homeownership for you and your family.

VA loans have no down payment requirement, and alongside FHA loans they are an excellent option for those who don’t want to pay high closing costs. Sellers will sometimes offer to cover closing costs. If you’re considering buying a home, contact a loan officer for help to evaluate your options. You might be surprised at what you can already afford.


Subject to credit approval. Terms and conditions may apply. Subject to VA eligibility requirements. Property insurance is required on all loans secured by property. 

This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.