What Does House Hacking Look Like?

House hacking can take several forms. You might purchase a duplex, live in one unit, and rent the other. In some situations, homeowners rent out an extra bedroom or another suitable portion of their home.

For first-time buyers concerned about the monthly cost of homeownership, rental income can make owning a home more manageable. Instead of paying your entire housing expense from your paycheck, you may have rental income helping to offset some of those costs.

At the same time, you’re building equity in a property you own.

Look Beyond the Monthly Mortgage Payment

Before purchasing a home with house hacking in mind, take a close look at the full financial picture.

Your budget should account for more than principal and interest. Property taxes, homeowners insurance, utilities, maintenance, repairs, and other expenses can all affect the true cost of owning a home. If you plan to become a landlord, you should also prepare for periods when the rental space may be vacant or unexpected repairs arise.

Remember, potential rent should be viewed as part of a larger financial plan, not a guarantee.

Understand the Responsibilities of Being a Landlord

House hacking can help create additional income, but it also means taking on new responsibilities. Depending on your arrangement, you may need to screen tenants, collect rent, handle maintenance requests, and understand applicable landlord-tenant laws and local zoning requirements.

And because your tenant may be living just a wall or floor away, consider whether sharing your property fits your lifestyle.

Doing your homework before buying can help you decide whether the financial benefits are worth the added responsibility.

Explore the Right Mortgage Options

The type of property you purchase and how you plan to use it can affect your financing options. That’s one reason it’s helpful to talk with a mortgage lender early in the process.

Consumers National Bank offers a variety of home loan options for Ohio buyers, including conventional loans, FHA, VA and USDA loans, as well as other programs designed to make homeownership more accessible.

For qualified buyers, the Consumers Community Difference™ mortgage program is another option worth exploring. The program is available for eligible owner-occupied one- and two-unit properties, subject to income, location, credit, and other requirements. Two-unit purchases require a 5% down payment, and landlord counseling may be required.¹

Could House Hacking Be Your First Step Toward Building Wealth?

A home is a place to live, but it can also be an important part of your long-term financial picture. For the right buyer, house hacking may provide a way to reduce housing costs, build equity, and gain experience owning an income-producing property.

Before you start searching for the perfect duplex or extra-bedroom opportunity, talk with the mortgage team at Consumers National Bank. Our local lenders can help you understand your financing options, determine what you may qualify for, and find a mortgage that fits your homeownership goals.

Ready to explore the possibilities? Contact Consumers National Bank today and take the next step toward making homeownership work harder for you.

¹Conditions and restrictions apply. All loans are subject to credit and collateral approval. Program requirements and availability are subject to change. Learn more: https://www.consumers.bank/Personal/Mortgage-Loans/Community-Difference