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Multifamily dwellings are less expensive to own because of theincome from nonowner-occupied units. The owner’s monthly mortgageand tax payments can often come from rental income. Ownership of amultifamily dwelling can be a way to afford your first house.Mobile HomesMobile homes represent a sizable portion of the dwellings in thiscountry. Mobile homes, also known as manufactured homes, are lessexpensive to purchase than other types of houses and cost less to keepup. They usually can be sold quickly and easily.CooperativesA cooperative (co-op) is a form of home ownership in whichbuyers purchase shares in the corporation that owns an apartment buildingand holds the mortgage on it. Shareholders have a proprietary leasethat gives them the right to their individual units. Each shareholder hasthe right of possession of an apartment and must pay a share of the operatingexpenses, mortgage, and taxes.CondominiumsIn a condominium (often called a condo), each owner has anabsolute individual interest in an apartment unit and an undivided commoninterest in the common areas of the condo project. These commonareas include stairways, yards, swimming pools, parking areas, elevators,heating systems, and the like. An association made up of the condominiumowners manages the condominium.ComputerTechnologyBill Gates has one. Somedayyou might, too. Automatedhouses, also calledsmart houses, with computerizedcontrol systemsare gaining popularityaround the country. Toucha wall-mounted controlpanel and have yourchoice of hundreds ofmusical selections pipedthrough the house. Callyour house from your caron the way home fromwork and tell it to turnon the lights.Research ActivityPredict the future of the“smart house.” Write aone-page paper andinclude illustrations withyour vision for the future.Reviewing What You Learned1. What are the advantages and disadvantagesof buying a home?2. Is it possible to buy a home with no downpayment? Explain your answer.3. Describe the five types of home ownership.Critical Thinking ActivityLender Criteria If you were planning toborrow money to buy a home, why would youremployment history be important to a lender?Legal Skills in ActionCalculating the Down Payment Using thefollowing scenarios, determine the downpayment required on a house that costs$240,000. (Assume all other costs arealready included.)l VA loan to a qualified veteranl Fannie Mae loan: 3 percentl FHA loan: 4.5 percentl Conventional loan: 15 percentChapter 34: Buying a Home 735