Buying a home isn’t just about finding a place to live—it’s one of the most important financial decisions you’ll ever make.
Buying a home provides stability in an unpredictable rental market, where rising rents and limited availability can make long-term planning difficult. Homeownership not only gives you control over your living situation but also allows you to build equity—a valuable financial asset that grows over time. And prospective homebuyers today are thinking beyond homeownership and exploring ways to make their purchase work for them as an investment.
At Mutual of Omaha Mortgage, we want to help you make the most of your homebuying journey. Here’s how you can maximize your investment, build wealth, and take advantage of financing options designed to support your goals.
How to Build Wealth Through Homeownership
By owning a home, you’re not just securing a place to live—you’re building financial security with options for the future. As you pay down your mortgage and your home’s value appreciates, you can tap into this equity when needed, giving you access to funds for important financial goals. Here are some common reasons homeowners choose to access their equity:
Home Improvements
Upgrade or renovate your home to increase its value and enhance your living space.
Debt Consolidation
Pay off high-interest debt, such as credit cards or personal loans, with a lower-interest home equity loan or cash-out refinance.
Education Expenses
Fund college tuition or other educational opportunities for yourself or a family member.
Emergency Expenses
Cover unexpected medical bills, job loss, or other financial hardships.
Investment Opportunities
Use your home’s equity to invest in additional real estate or other wealth-building ventures.
Think Beyond Traditional Homeownership
Many homebuyers today are exploring ways to make their purchase work for them financially. Here are a few trends that can help you build equity and generate additional income:
Multi-Generational Living
Buying a home that accommodates multiple generations can help you share expenses and qualify for a larger mortgage. Whether it’s aging parents moving in or grown children returning home, this setup can provide both financial and lifestyle benefits.
Accessory Dwelling Units (ADUs)
Adding a small rental unit, like a guesthouse or converted garage, can generate extra income and increase your property’s value. Some loan programs allow financing options for homes with ADUs.
House Hacking
This strategy involves renting out part of your home—like a basement apartment or extra bedroom—to help cover your mortgage payments. Even short-term rentals can provide an income boost.
Buying with Future Rental Potential
If you plan to move in a few years, consider purchasing a home in an area with strong rental demand. This allows you to convert it into an income-producing property later.
Financing Strategies to Support Your Investment Goals
To make the most of your home purchase, choosing the right financing is key. Here are some loan options that can help maximize your investment:
FHA and VA Loans
These government-backed loans offer low down payment options, making it easier to buy a home with rental potential. VA loans also allow multi-unit purchases for eligible buyers.
Conventional Loans with Rental Income Considerations
Some lenders allow you to count potential rental income toward your mortgage qualification, increasing your buying power.
Renovation Loans
If you’re buying a fixer-upper or adding an ADU, financing options like FHA 203(k) or HomeStyle loans can help cover renovation costs.
Cash-Out Refinancing
If you already own a home, you can tap into your equity to fund home improvements or investment opportunities.
Making Smart Homebuying Decisions
Maximizing your home investment starts with choosing the right property. Here are a few tips to help you make a strategic purchase:
Look for Homes with Equity Potential
Consider properties in up-and-coming neighborhoods, homes with space for an ADU, or those that need minor renovations to boost value.
Work with a Knowledgeable Lender
The right mortgage can make all the difference. At Mutual of Omaha Mortgage, we can help you explore loan options that fit your financial goals.
Plan for the Long Term
Whether you’re buying your forever home or a stepping-stone property, thinking ahead about resale value and rental potential can help you maximize your investment.
Ready to Make the Most of Your Home Purchase?
At Mutual of Omaha Mortgage, we’re here to help you turn your homeownership dreams into a wealth-building reality. Whether you’re buying your first home, investing in a rental property, or looking for creative ways to make homeownership more affordable, we have loan options to fit your needs.
Want to explore your financing options? Contact us today to get started!
