Joseph Pettinella's blog

Did you know that nearly one-third of all homes sold last year were purchased by single persons?  Many single women and men are buying homes on their own. In fact, according to the National Association of Realtors® single women accounted for 21% of all home purchases last year, and single men accounted for approximately 10%.  

So if you are a single man or woman about to venture into owning a home on your own, there are some things you should make sure you have buttoned up to protect yourself and your assets.

It's very possible that the best first home for you may be a multi-family home.  Having a tenant to help pay your mortgage can really pay off.

A duplex is a single building with separate units and separate entrances.  You can live in one of the units and rent out the other. Being a first-time homebuyer and landlord can work well together, especially if you live on the same property as your tenants. As a new homeowner, you may be more flexible about your living arrangements, having lived in apartments, and perhaps are without too many other heavy responsibilities such as children.

Many first-time buyers who purchase a duplex and rent out the other unit are working to prepare themselves for the next property . . . perhaps a single-family home where they plan to start a family.  The plan may include keeping the duplex as an investment, renting both sides, and using the supplemental income to help with the next home purchase and begin building steady long-term wealth.

Zero and low down payment mortgages were blamed in large part for the housing crisis.  But the much bigger issue was that lenders were lending money to people who couldn't afford to pay, and to people who were very bad credit risks. There were many factors that landed us in the crisis, and the zero and low down payment mortgage products were just one of the contributing factors.

Things are a lot different today. Qualifying standards are much more stringent.  Most lenders have checks and balances in place to assure they are only lending money to people who can afford to make the monthly payments and who are good credit risks.

It makes a lot of sense to bring back zero and very low down payment mortgages in today's environment. Several major lenders are now offering loans with as little as 1% down, and one major lender has announced a zero down mortgage program.